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How Bookkeeping Services Work

Bookkeepers keep track of all the money going in and out of your business. While big companies usually have in-house bookkeepers, smaller companies and individual-owned businesses often hire one on a freelance basis—saving significant money and time.

Bookkeepers can do many different things, depending on the size of your business and what you need. Some of the possibilities include:

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Tracking All Your Transactions

How much money is your business really making—and how much are you spending? You’d be surprised how many business owners don’t know off the top of their heads.

Your bookkeeper will keep close track of all your business transactions. You’ll always know where your money is coming from —who your biggest clients or best-selling products are — and what your company spends the most money on.

Bookkeepers can also prepare regular reporting on the state of your finances. These provide a helpful snapshot of your company’s financial health and they’re often crucial in guiding important business decisions.

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Reconciling Your Accounts 

Reconciling involves making sure the transactions in your financial records match the records on your credit card, bank account, and other financial statements.

This step is essential to making sure you have enough money in your accounts to cover transactions  so you avoid overdraft fees, bounced payments, and other issues.

Setting Up A System

If you’ve been handling your expenses yourself, you may not have a formal, efficient system for tracking your incoming and outgoing cash. Your bookkeeper can set up software that categorizes your business expenses automatically.

Your bank may already do this for you, but you’ve probably noticed that not every expense gets categorized correctly or at all. Your bookkeeper can make sure nothing falls through the cracks, including checks and cash payments.

Handling Accounts Payable And Receivable

Accounts receivable involves generating invoices, sending them to your clients, delivering statements, monitoring overdue payments, and managing collections so you get paid on time.

Accounts payable involves paying your company’s bills. Your bookkeeper can keep track of payment deadlines, and make sure your incoming invoices get paid on time, and ensure you get all the early-payment discounts you’re entitled to.

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Coordinating Your Taxes

Your bookkeeper keeps your financial records pristine for tax time, manages things like quarterly payments and sales tax, and keeps you compliant with tax regulations. They’ll also communicate with your tax preparer to keep the process going smoothly.

If you get audited, your bookkeeper can communicate with the IRS and handle the process. This service takes a huge amount of hassle and stress out of tax time for small business owners.

Managing Your Payroll

Your bookkeeper can process paychecks, manage tax withholding, and put a system in place so your W2 and 1099 employees get paid in a timely manner.

A good bookkeeper is invaluable not only in managing and monitoring your company’s finances, but in setting up systems that streamline complex processes. These underlying systems are priceless in helping you keep a finger on the financial pulse of your business.

Get In Touch With Us Today

Call us today to set-up a free, confidential consultation. We’ll discuss which bookkeeping services fit best with your business and how we can save you money and time.

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