Depending on the demands of a company, bookkeepers might wear a variety of hats. However, most bookkeepers nowadays deal with business accounting software. In addition, there are a few things that practically any accountant can handle for your company. Despite the fact that the function of a home of specialist bookkeeping in Sydney is varied, there are some basic principles that bookkeepers follow.
If you’re curious about what a bookkeeper performs, you’re presumably also curious about whether you need one. We’ll go over the chores that a bookkeeper can handle for you, as well as the going rate for a bookkeeper and where to find one.
What Is the Role of a Bookkeeper?
There is no clear answer to this question. Bookkeeping, like any other field of labour, might seem different from one company to the next. However, the following are the most typical responsibilities that bookkeepers are responsible for:
Your Bank Accounts Should Be Reconciled
Reconciling your financial records is the most crucial responsibility for any bookkeeper. Account reconciliation ensures that transaction details in your accounting software correspond to transaction details on bank, credit card, and other financial account statements.
To minimise overdraft fines, fraudulent charges, or erroneously recorded transactions, it’s critical to reconcile your accounts on a regular basis. Although accounting software makes reconciliation relatively simple, a human touch is still essential to ensure that all transactions are recorded correctly.
Accounts Payable should be handled with care
Many bookkeepers also handle their clients’ accounts payable in addition to accounts receivable. That means the bookkeeper will be in charge of all of the company’s vendor bills. Bookkeepers will take note of each vendor’s payment deadlines, as well as any early payment discounts that may be available, and submit payment to the vendor.
As a business grows, bookkeepers can add more approvers to give payments the green light. Sustaining positive trade credit terms and maintaining relationships with suppliers requires proper accounts payable management.
Collaboration with Your Tax Preparer
One of the functions that many bookkeepers overlook is that they will act as a translator between you and your certified public accountant or enrolled agent by default. Because bookkeepers have a far better understanding of your books, having your bookkeeper call your tax preparer when you’re about to file your small business taxes is sometimes easier.
Financial Statements to Prepare
The profit and loss statement, balance sheet, and cash flow statement are the three key financial statements that most bookkeepers will generate for your business. It’s a good idea to have monthly financial statements updated, and then again at the end of the year.
The profit and loss statement displays your company’s revenue and expenses. The balance sheet depicts the assets and liabilities of your company. The cash flow statement displays how much money is coming in and going out of your business. Bookkeepers can use accounting software to create these financial statements, which they can then share with your accountant and tax preparer.
Payroll and human resource functions are sometimes performed by bookkeepers. Payroll services may be available through your bookkeeping firm, or they may be able to assist you with the processing of paychecks, tax payments, and forms.
They may simply enter payroll data into your accounting system after your payroll service provider has provided you with reports, or they may import data from a file provided to them. Bookkeepers may also be able to assist you with timesheets for hourly workers or overtime.