4 Major Activities that a Professional Small Business Bookkeeper Handles

Entrepreneurial success as a small business owner depends on the staff you employ. The demand for professional bookkeeping services has increased today, but only some entrepreneurs understand such experts’ roles. Some make it wrong to think that accountants and bookkeepers handle similar tasks. Bookkeepers ensure accurate financial reports, which accountants and managers use for effective decision-making. This article covers the top four activities that professional bookkeepers deal with. So, ensure you go through it keenly for a better understanding.

1.    Handling Accounts Payable and Receivable

Bookkeepers are responsible for your small enterprise’s accounts receivable and payable. This role starts with ensuring that the clients receive their invoices on time. The expert must also ensure they follow up on these invoices and collect customer payments. Unpaid invoices can lead to delayed operations because of low cash flow. Many small businesses have suffered a blow due to an unreliable cash flow.

Additionally, bookkeepers ensure they pay the suppliers all their dues on time. This action is necessary because it minimizes supply delays and adverse effects on supplier credit. You can also include payroll services as an addition to accounts payable and receivable management. Bookkeepers calculate employees’ salaries, handle the necessary deductions, and make sure your workers receive their remuneration on or before the due date.

2.    Dealing with Data Entry

Bookkeepers also handle data entry, which are simple tasks involving proper recording and filing of financial transactions. The main aim of the data entry is to show the money that comes in and goes out of your small business. These reports and records are critical in preparing and presenting entrepreneurial financial statements. Precise financial statements enlighten you and your business stakeholders about the organization’s performance. According to Remote Quality Bookkeeping, “Everyone should know how with numbers that even small errors can have large consequences when it comes to finance and record keeping.”

3.    Developing Monthly Financial Statements

The benefit of the monthly financial statements that bookkeepers create and present is proper business performance tracking. Unfortunately, many business people hand over this task to the accountants, overwhelming them in their job.

Moreover, not all small enterprise owners know the reports that make up these monthly statements. Some financial reports to leave to your bookkeeper include the business cash flow statement, balance sheet, accounts receivable and payable, and profit and loss accounts. These reports show how you fare regarding hitting profit maximization, the primary objective in all businesses.

4.    Bank Reconciliation

There are several reasons why every small business owner must embrace the need for a bank account. First, it makes transactions more manageable and statement tracking easier. This reconciliation refers to comparing transactions in your books and what the bank statements reflect. Bookkeepers undertake this crucial role to ensure that your bank statements rhyme with what you record in your books of accounts. You should also learn that bank reconciliation helps you to rectify data entry mistakes and irregular or overlooked transactions.

Hiring a professional bookkeeper is inevitable to grow and steer your small business toward success. Nevertheless, employing such an individual without first considering their roles would be inappropriate. The above information covers the main bookkeeping tasks these financial record experts handle in their line of duty.