Bookkeeping is one of the most important parts of owning a small business. Without a bookkeeper, you are unable to keep track of all the money both leaving and coming into your business. This also leads to unnecessary expenses and other potential issues. Today we’ll discuss basic bookkeeping to help you get a better handle on why this is so important.
One of the most basic and most important tasks a bookkeeper performs is preparing and managing your source documents. Source documents include all transactions your business performs, both money coming in and money coming out. This may be in the form of invoices, paychecks, purchases, etc. Make sure that your bookkeeper is given the most up to date information and that every cent that passes through your business is going directly to them so that they can help you and your small business. Your bookkeeper will then enter those transactions into their bookkeeping software, which allows you to have them send you reports on a daily, weekly, monthly and yearly basis. Speaking of reports…
Why reports are important
Your bookkeeper shouldn’t need to be reminded of the importance of reports to your small business. These reports are essential to the financial health and wellbeing of your business. From a quality bookkeeping report you can establish where your money is going and where it is coming from. This allows you to also track inventory (including cost of product to help you determine if you may be spending too much money and/or not charging enough for your goods or services). To do this, make sure that your bookkeeper has access to the most up to date software programs. Not only will this make his or her job much easier, but it will also
Other duties bookkeeper’s provide
Besides reports and keeping track of finances, in some cases bookkeeper’s may also help manage your human resources and payroll departments. This is only the case if he or she has been trained in human resources. Hiring a bookkeeper that is skilled in the intricacies of payroll and human resources can be enormously helpful when running a small business, as this can potentially cut your payroll in half if you’re not having to pay two separate people to do essentially the same thing. Remember this when hiring a bookkeeper. They also will help you manage your tax return at the end of the year provided you have access to the most up to date tax software. This is incredibly helpful, especially since they keep the reports for the remainder of the year as well.
If you’re a small business owner and you’re considering whether or not the price of a bookkeeper is worth it, remember all that they provide. Not only can a quality bookkeeper help you keep track of your day to day finances, they also can help you cut costs and potentially also help you manage your payroll and human resources departments. A bookkeeper is always worth it! visit site for more info bookkeeperco.com.au