- Lani Savvidis
Bookkeepers: What They Do and How To Decide If You Need One
When people hear that I'm a bookkeeper, their next question is usually "What does a bookkeeper do?" You've most likely heard the word bookkeeping as a small business owner when talking finances. It's a necessary part of running a business but chances are you find this part of the business pretty boring. Lots of business owners do their own bookkeeping, but outsourcing this can be hugely beneficial to how you run your business.
Bookkeeping is a way of keeping your business's finances organized. A bookkeeper will track and document all of the money coming in and going out of the business. They can provide you with short term financial statements so that you have a clear understanding of how your business is doing. A bookkeeper is also less expensive to hire than a CPA, especially if your books are a mess come tax time. You'll still need a CPA to file your taxes, but they'll be much happier when you turn over clean, organized books at their busiest time of year.
Duties of a Bookkeeper
1. PREPARING FINANCIAL STATEMENTS
There are 3 main statements a bookkeeper takes care of:
Income statement-A comparison of your profit and losses over a given time.
Balance sheet-An overview of your financial situation at any given time that covers your assets, liability and equity.
Cash flow statement-Documentation of any cash coming in and out of your business.
2. GET YOUR FINANCES AND STATEMENTS READY FOR YOUR CPA
If you work with a bookkeeper, all of the information needed for your taxes will be ready to hand over to your CPA so you aren't left scrambling trying to remember what different expenses were or how you spent that $200 ATM withdrawal.
3. KEEP YOU ON BUDGET
It can be hard to stay on budget if you don't know where your money is going. By tracking all of your expenses, we can help maintain your annual budget and increase your earnings.
4. TAKE CARE OF THE EXTRAS LIKE PAYROLL, A/R AND A/P
We'll make sure your employees and contractors are paid on time and correctly when you outsource your payroll to us. We can also handle making sure your bills are paid and handle the client invoicing.
If the thought of having all this appeals to you, schedule your call today and let's talk about how I can help you and your business!