Every company needs a bookkeeper. A competent bookkeeper using a good bookkeeping or accounting system can enable the owner to concentrate on the company’s core business, and this is one of the most important answers to the question often asked: Does your company need a bookkeeper? There are many other reasons that justify a bookkeeper position in your business. Our company can provide bookkeeping services, and we can also provide part-time bookkeeping services. We can also provide the best systems that will be easy to use, and easy to extract reports from.
A bookkeeper will organize the business transactions to provide the necessary reports on the financial aspects of the business operations. These reports are essential for helping the owner to understand whether their business is making or losing money. Reports can be generated to create inventory turnover ratios and the aging of accounts receivables as well as invoices that are due to be paid. The bookkeeping position will be the one to focus the owner’s attention on areas causing potential financial problems.
A bookkeeper can formalize budgets and report actual performance to the budgets on any frequency the owner needs. Cash forecasts are another essential function that will keep the business from running out of cash, or these will help the owner realize when they need to borrow money for operating expenses.
Keeping track of employee hours worked, preparing the payroll and making the required payments to the governments on the due dates will save the business penalties, fines, interest and a lot of trouble. Maintaining compliance with the state and federal tax reporting requirements is absolutely necessary. However, many businesses without a bookkeeper find this to be a tough task. Preparing year-end payroll forms and reports for the insurance companies is a job for the bookkeeper.
A good bookkeeping system will enable the bookkeeper to record all revenue and expenses properly. Recording these items in the accounts that will be used by the accountant to prepare the tax liability of the business is another way the business can save money. If the accountant does not learn about tax deductible or tax credit items, then these will likely not be used to the advantage of the owner.
Correctly posting financial data to the appropriate accounts will ensure that the accountant and the CPA will be able to get an entirely accurate picture of the financial health of the business. The data posted to the accounts will enable the creation of important financial statements such as a balance sheet and a profit and loss statement. The accountant or the CPA will be able to offer operational changes to improve sales and profits.
Lenders will not view a business in a good light if the business does not have a bookkeeper and an accounting system.