What are the Professional Bookkeeping Services for Your Business?

Bookkeeping is the process of recording and organizing the financial transactions of a business. This is crucial for a company to track its expenses, sales, and profits accurately for tax purposes, financial planning, and decision-making. Though it may seem like an easy task, bookkeeping can be complicated and time-consuming, especially for small business owners who wear many hats. Hiring a professional bookkeeper can save you time, money, and effort. Here are seven professional bookkeeping services that your business needs:

Bookkeeping

Initial Bookkeeping Setup

This service is perfect for startups or businesses that have never kept proper books before. A professional bookkeeper can set up your chart of accounts, record all outstanding transactions, and help you set up a system for future transactions. This will ensure that your books are accurate from day one.

Set up your chart of accounts

  • For example, you might have income accounts, expense accounts, and asset accounts. By setting up a chart of accounts, your bookkeeper can ensure that every transaction goes to the right place in your financial records.

Recording all of your outstanding transactions

  • This includes everything from sales you’ve made to bills you owe to suppliers. By bringing your books up-to-date, your bookkeeper can give you a clear picture of your business’s financial health. This is crucial information that can help you make better decisions about your operations and overall strategy.

Set up a system for future transactions

  • This might mean creating a process for invoicing customers, keeping track of receipts, or even setting up a payroll system. By having a system in place, you’ll be able to stay on top of your financial records and avoid any nasty surprises down the road.

Bank Reconciliation

Regular bank reconciliation is essential for keeping track of your company’s cash flow. A professional bookkeeper can compare and balance your bank statement and identify discrepancies in your accounts. This service will help you identify if there are any unauthorized transactions or errors in your accounts.

Here are some example scenarios of how a bookkeeper can help your business with this task:

Let’s say that your small business recently opened a new bank account. After a few weeks of operation, you realize that the account’s balance doesn’t match your records. No need to panic! You can consult a bookkeeper to conduct a bank reconciliation and identify any possible errors.

  1. The bookkeeper will start by reviewing your bank statement and comparing it to your accounting records. They will ensure that every deposit and withdrawal matches and calculate the resulting balance. If there are any discrepancies, the bookkeeper will investigate further and reconcile the two balances.
  1. What’s more, a bookkeeper can also identify any unauthorized transactions that may have occurred in your bank account. This could include fraudulent charges or errors made by the bank itself. The bookkeeper can flag any suspicious activity to you and initiate the necessary steps to resolve the issue right away.
  1. In the end, bank reconciliation services offered by professional bookkeepers are crucial for maintaining accurate and up-to-date financial records. It’s not just about finding errors, but also ensuring that your business stays compliant with relevant financial regulations. So, let a bookkeeper take care of your bank reconciliation and rest easy knowing that your finances are in good hands.

Accounts Receivable

Another critical bookkeeping service is tracking your accounts receivable. A professional bookkeeper can help you manage your sales invoices or provide a template for you to do so accurately. This will prevent errors in your financial records and help you collect payments from your customers.

Bookkeeping

Pro Tips

Set Clear Payment Terms: One of the primary reasons for payment delays is unclear payment terms. Be specific about your payment expectations and your preferred payment method, so your customers know exactly what’s expected of them.

Invest in an Invoice Tracking System: An efficient invoicing system ensures that you know exactly who has paid and who still owes you money, as well as when payments are due. You could consider using accounting software to facilitate the process, automate reminders, and record payments.

Follow Up Regularly: A useful tip is to make the first call as soon as payment becomes overdue. A friendly reminder of payment due or a payment plan can help align expectations and provide a better chance of collecting payment.

Reconcile Your Accounts Regularly: Regular account reconciliation can help you spot discrepancies between your records and your bank account. It also helps ensure that your business is in a healthy financial position.

Outsource Your Accounting: If managing your bookkeeping tasks becomes too much or too complicated, consider outsourcing these functions. Outsourcing frees up more of your valuable time, allowing you to focus on what you do best – running your business.

Accounts Payable

Managing your accounts payable is equally critical. A professional bookkeeper can help you keep track of your bills and when they are due to avoid late payments, fees, or interest charges.

Here are some tips on how they can help streamline your accounts payable processes:

  • Customizable Payment Schedules: Avoid missing due dates and incurring penalties. They can also help you negotiate better payment terms with suppliers, which can help you save money in the long run.
  • Accurate Record Keeping: Not only do bookkeepers keep track of all your incoming and outgoing invoices, but they also make sure that everything is accurately recorded. This helps you reconcile your bank statements and avoid discrepancies in your financial records.
  • Streamlined Payment Processing: Bookkeepers can set up electronic payment processing, making it easier for you to pay your bills online. This can save you time and reduce the risk of errors associated with manual bill payments.
  • Detailed Reporting: A professional bookkeeper can provide you with detailed reports on your accounts payable, allowing you to easily track your expenses and provide insights into your business’s financial health.

Payroll Management

Payroll management can be daunting, especially for small businesses that don’t have an HR department. A professional bookkeeper can help you manage your payroll accurately, track hours worked, manage employee benefits, and file payroll taxes on time.

Here are some tips for effectively managing your payroll with the help of a professional bookkeeper:

  • Accurately track hours worked: One of the key responsibilities of a bookkeeper in managing payroll is to accurately track the hours worked by your employees. This is essential to ensure that your employees are paid accurately and on time. A bookkeeper can also help you establish a time-tracking system that works best for your business.
  • Manage employee benefits: As a small business owner, you may not have the time or resources to manage employee benefits, such as health insurance and retirement plans. A professional bookkeeper can help you stay on top of these important benefits and ensure that they are managed accurately and efficiently.
  • File payroll taxes on time: Payroll taxes are a legal requirement, and failing to file them on time can result in hefty fines and legal trouble. A professional bookkeeper can help ensure that your payroll taxes are filed accurately and on time, saving you time and money in the long run.
  • Provide expert advice: A professional bookkeeper has the expertise and knowledge to provide valuable advice on payroll management and other financial issues. They can help you stay up-to-date with changing tax laws and regulations and provide guidance on best practices for managing your finances.

Financial Reporting

Bookkeepers can prepare detailed financial reports such as income statements, balance sheets, and cash flow statements. These reports will give you insight into your company’s financial health, revenue, and expenses, and help you make informed decisions for future growth.

  • An invaluable report that bookkeepers can prepare for your business is the income statement. This report displays your company’s revenue and expenses over a certain period, providing insight into where your money is going and where it’s coming from. 
  • The balance sheet can report provides a snapshot of your company’s financial situation at a specific moment in time. It shows your assets, liabilities, and equity, giving you a clear picture of your financial standing. This information is invaluable when it comes to applying for loans or seeking out investors.
  • A cash flow statement details your company’s cash inflows and outflows, providing insight into your company’s liquidity. This information is crucial when it comes to managing short-term financial obligations and ensuring that your company can cover its expenses.

Tax Preparation

One of the most crucial services a bookkeeper can provide is filing your business taxes. A professional bookkeeper can help you ensure your financial records are accurate, identify tax deductions and credits, help you complete tax forms, and file tax returns on time.To help you navigate this process, we’ve compiled a list of tips that will make your search for the perfect bookkeeper a breeze!

Pro Tips

Look for Experience: The ideal bookkeeper should have a minimum of three years of experience in the field. However, it’s even better if they’ve worked with businesses similar to yours. This way, they will be better equipped to identify and manage your specific tax needs.

Check for Certifications

A great way to differentiate between a qualified bookkeeper and a mediocre one is by checking for industry-relevant certifications. Certified Public Accountant (CPA) or Certified Bookkeeper (CB) qualifications are some of the top industry-relevant ones to look for when seeking professional bookkeeping services for your business.

Choose a Bookkeeper That is Organized

Filing tax returns is a meticulous process that requires a high level of organization. Your chosen bookkeeper should have a reliable system in place to manage receipts, invoices, and financial statements. This way, you can rest assured that your tax returns will be accurate and filed timely with no challenges.

Tech-Savvy

In this digital era, technology plays an essential role in bookkeeping. A qualified bookkeeper should be up-to-date with the latest accounting software and tools. With the use of technology, accounts are updated in no time with accuracy.

Excellent Communication Skills

One of the most crucial skills a bookkeeper should possess is fantastic communication skills. They must be able to communicate financial information in an understandable and straightforward manner. This will also help avoid miscommunication and misunderstandings that could lead to tax problems.

Good Reputation

Last but not least is other people’s experience working with such bookkeepers. You can get recommendations from friends or read reviews online. A competent bookkeeper should have a positive reputation in the industry, and that is a sign of reliability and professionalism.

Conclusion:

Having a bookkeeper for your business is key to taking your enterprise to the next level. When you are busy attending to the other facets of running a business, it can be difficult to stay on top of bookkeeping duties. That’s where professional and experienced bookkeepers can help. Professional bookkeepers are organized, timely, and accurate with their data entry. 
Plus, they’re usually adept at handling payroll and financial statements. Bookkeeping services allow businesses to have more confidence in managing their finances. If you’re interested in learning more about what a professional bookkeeper can do for your business, or in need of bookkeeping services right away, don’t hesitate to reach out – we’d love to hear from you! Financials Accelerators provides comprehensive accounting and bookkeeping services that help clients create streamlined processes and ultimately lead to saving time & money by increasing organization and transparency. Visit us online to check out our services!

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