Here is a quick overview of the most important roles of a bookkeeper and the important role they play for a business.
Your bookkeeper will enter all your financial transactions into the system accurately and analyse them to the correct accounts in your accounting software. Regular reports will be provided that contain useful information on your business performance.
A bookkeeper will record and reconcile your business expenses to any purchase orders and delivery dockets to ensure you have received what you ordered and paid for. They will also look after your petty cash expenses and enter all creditor’s invoices and payments into your accounting software.
Invoicing and Receipts
A top priority for any small business is collecting money from their customers. A good bookkeeper will ensure invoices are sent on time, follow up on overdue payments and manage all money coming into the business. These tasks are pivotal for every small business.
Payroll can become a large task if you are employing staff. Checking timesheets, working out commissions, calculating payroll tax and superannuation, and keeping accurate employee records takes time. Payroll processing then needs to be done through both the accounting software and the bank account. Employing a bookkeeper will save you a great amount of time especially if your payroll is done weekly.
Most online accounting software packages now link directly to business bank accounts. Your bookkeeper can download bank transactions directly into your accounting system and allocate payments and receipts to the correct accounts. Reconciling all bank transactions to your accounting software system is important because all transactions need to be accounted for.
Last not least, your bookkeeper will be able to provide regular or on-demand financial reports: balance sheet, profit and loss, cash flow forecasts and budgets. This will give you all the information you need to monitor and possibly improve the financial performance of your business. They will be able to guide you on what areas need improving, and those that are performing well that can be taken to the next level.