When it comes to running a successful business, understand that it’s a lot more than great ideas and execution. One of the foundational aspects of any business of any size staying afloat and scaling lies in effective financial management, and that’s precisely how bookkeepers help. If you’ve ever found yourself wondering “What do bookkeepers do?”, or even how their work differentiates itself from the work accountants do, you wouldn’t be alone.
Bookkeepers are the ones that cover the groundlaying financial operations so that businesses like yours can stay organized and thrive fiscally. So, today, we’re diving into the roles and responsibilities that bookkeepers hold to help support business operations.
What Is Bookkeeping?
If we’re going to dig into what bookkeepers do, we first need to define bookkeeping. If we’re being plain about it, bookkeeping is the recording, organizing, and maintaining of all of your business’s fiscal transactions. These tasks could involve anything from tracking the company’s expenses to bringing forth fundamental fiscal reports.
You’ll find that accountants usually have a keen focus on data analysis and providing strategic financial advice, while your bookkeepers are who will make sure that all of your financial data is accurate and up-to-date. Bookkeeping tasks are the element of your business that helps you make data-informed decisions as a business owner. That said, bookkeepers are absolutely invaluable to any company’s operations.
Key Roles and Responsibilities of a Bookkeeper
We know you’re wondering “What do bookkeepers do?”. Well, in short, they do a lot. Their responsibilities fall under a few categories. Let’s get into them:
Managing Financial Transactions
Your bookkeeper will record and categorize every financial transaction that your business makes. Whether we’re talking about sales revenue or utility costs, you can count on your bookkeeper to keep track of every penny.
They’re essential because business owners will always have a very clear understanding of where all their money is moving to and from.
Maintaining Financial Records
Bookkeeping also entails the organization and maintenance of some very integral fiscal documents. From receipts to invoices and bank statements, you’ll want these records to be easily accessible.
Handling Payroll
One of the biggest bookkeeping tasks that bookkeepers undertake is managing payroll. Payroll is what keeps the business moving. Your bookkeeper will make sure that all employees are always paid accurately and in a timely fashion. This element makes it so that bookkeepers have a direct impact on employee satisfaction, corporate culture, operational efficiency, and morale.
Reconciling Accounts
Account reconciliation requires some very meticulous attention to detail. Being one of the more tedious bookkeeping tasks, your bookkeeper will compare your business’s fiscal records with bank statements to make sure that everything is in alignment. This is a great way for them to weed out any discrepancies and remedy them so that all of your data is error-free.
Preparing Financial Reports
If you want an overview of your fiscal performance, bookkeepers are a huge help. They develop fundamental financial reports that keep you informed on your business’s fiscal health.
Why Are Bookkeepers Essential for Small Businesses?
Now that you know what bookkeepers do, you can better understand the value they bring to you and your small business. They’re essentially the cornerstone of any business’s success, and we’ll tell you why:
Financial Chaos Prevention
If you aren’t efficiently keeping records of your company’s transactions, fiscal mismanagement is almost inevitable. Bookkeepers help foster a sense of structure that mitigates any derailment caused by unchecked finances.
Supporting Growth
Bookkeepers will manage your daily operations so that you can focus on your long-term scaling and strategic planning.
Complementing Accountants
Your accountants and bookkeeper essentially work hand-in-hand. Bookkeeping focuses on taking care of the more routine fiscal tasks, while your accountants work on tax preparation, analysis, and advising.
Bookkeepers can serve as a huge asset to your business. You cannot put a price on the peace of mind you’ll have to know that all of your financial records are in order and accurate. That’s where Estess CPAs come in. Our experts specialize in streamlining the bookkeeping tasks of small business owners all across New Orleans.
When Should You Hire a Bookkeeper?
Businesses, no matter the size, are always juggling a slew of responsibilities, and when you understand the signs, you’ll know it’s time to hire a bookkeeper and take your operation to the next level. You know you need a bookkeeper if:
Your Records Are Disorganized
If it’s feeling overwhelming to keep track of all of your business’s invoices, receipts, and payments, you’ll need to bring in a professional. When you hire a bookkeeper, all of those tasks can be delegated to them while you focus on running the rest of your business.
You’re Spending Too Much Time
If your finance management is eating up a huge chunk of your day, it’s time to call in the big guns.
Your Business is Growing
As your company continues to scale, so will the intricacy of your financial transactions–and that, you can count on (a little accounting humor). Bookkeepers will help you make sure that all of your financial systems are growing with you instead of trying to keep up.
Outsourcing your bookkeeping tasks can really take a load off of you as a business owner. Saving time, reducing stress, and elevating accuracy is the name of the game, and Estess CPAs are here to play. We offer an array of tailored services that are sure to keep your business on track so that you can focus on scaling.
Bookkeepers play a vital role in helping businesses keep themselves organized and fiscally sound. Whether they’re tracking your transactions or producing reports, you can count on your bookkeeping tasks to have a direct positive impact on your business operations.
Are you ready to start outsourcing your bookkeeping and other accounting tasks? Get in touch with the Estes CPA team! We’ll work with you closely to understand all of your business needs and goals and hit the ground running. Don’t let shotty record-keeping hold your business back. Click here to chat with experts!
Let us handle the numbers.
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