Bookkeepers play a crucial role in keeping your books/accounts in order, among dozens of other things. Outlined below are some of the roles/things that having a bookkeeping health check can do for your small business.
1. Manage day to day transactions
A bookkeeper can help keep track of all transactions in the business. The best thing about this is the fact that everything can be done using software, making it a lot easier to monitor your cash flow. Bookkeeping soft wares are also quite efficient in capturing all transactions, saving you both time and money.
2. Keep your records accurate and up-to-date
It is the bookkeeper’s responsibility to keep all your business records updated. They are also trained to catch even the smallest inconsistencies, especially between your business accounts and books. Thus, the bookkeeper will flag most of these issues to help keep your financial records as accurate as possible.
3. Ensure Your Business Conforms with The Law
A bookkeeper will help ensure your business works according to all the relevant laws, especially tax laws. As mentioned earlier, a good bookkeeper will detect small inconsistencies in your records and help correct them before it is too late. They can thus be the difference between getting a letter from HMRC or not at all.
4. Prepare Your Tax Returns
Running a small business can be hectic at times. Most small business owners rarely think about keeping their books, and especially tax returns in order. They thus are at the highest risk of missing the taxman’s deadlines. A bookkeeper, however, strives to ensure your financial books are balanced and accurate. This means you will always be prepared for tax no matter the time.
5. Manage Bank Feeds
Almost all bookkeepers today use accounting software, or an app, to manage transactions in the business. They can also use the same software to monitor bank feeds from your business bank account. The bank fees allow you to see all transactions in real-time.
6. Take Care of Accounts Payable
The bookkeeper can help handle all payments on your behalf. You can thus authorise him/her to handle everything from perry cash, expenses, and payment of supplier invoices.
7. Manage Accounts Receivable and Send Invoices
It is the bookkeeper’s responsibility to prepare and send invoices to clients on time. This enables clients to pay their dues on time, thus smooth cash flow. Allowing your bookkeeper to manage all accounts receivable also reduces the chances of a missed or late payment. It also enables the bookkeeper to keep an updated and accurate transaction record.
8. Prepare Financial Statements
The bookkeeper is also responsible for preparing the business’ balance sheet, profit and loss statement, and cash flow statement, among other major financial statements. These records show your business’s lifeline and can sometimes be challenging for even the most experienced business owners to prepare.
9. Fulfil Payroll and Other HR Functions
A bookkeeper can be tasked with processing both tax payments and pay-checks as well. He/she can also help fulfil HR functions in the business as well.
10. Handle Forex Transactions
Digital bookkeeping apps make it possible for a bookkeeper to ensure foreign currency accounts are accurate and even use the most current exchange rates. You thus never have to worry about the current forex rates.
11. Do Inventory Reports
The bookkeeper may also be tasked to do a stocktaking of all inventory in the business. They often help identify possible discrepancies in the reports and advise on the best way to address them.