As a business owner, knowing how to make and spend money is an integral part of your position. Making money allows you to hire employees and stay in business, while spending money is necessary in order to acquire supplies, products and target audience attention. But neither of these tasks can truly be done successfully if you aren’t also considering a third thing: the management of your money. Knowing what and where you are spending money, as well as how much money you have to spend, allows you to make informed financial decisions that can benefit your business and improve its chances of success.
Of course, taking these tasks up yourself may pose a challenge, as accurate bookkeeping demands time and attention that could be better spent running your business. That is where a bookkeeping service, like the one we provide at Estess CPA, comes in handy. But what exactly is a professional bookkeeper, and what can they do for your company?
What is a Bookkeeping Service?
In the simplest of terms, bookkeepers help business owners keep track of their money. Reducing their function to a single sentence, however, takes away from the enormity of their task and its role in the success of your business. A bookkeeper’s job is to keep an accurate and organized record of your cash flow, allowing you to monitor your finances and ensure that you are aware of any changes that need to be made. It is often a time-consuming task, and one which demands a strong attention to detail, allowing bookkeepers to spot any errors or inconsistencies as soon as possible.
Of course, bookkeepers often do more than simply keep an eye on your cash flow—they may help to manage it as well. Tasks including billing reminders and payroll can also fall under their purview, furthering the essential role they play in regards to your business’ financial success.
Key Responsibilities of Professional Bookkeepers
The exact services a professional bookkeeper can provide depends on their experience and certifications. Before hiring a bookkeeper, it is important to assess the needs of your business and determine whether the bookkeeper you are considering can handle all of the tasks you want completed. These tasks may include:
- Maintaining records of all financial transactions, including income, purchases and payments, in order to help you keep track of your money, identify any issues early and make informed business decisions.
- Managing accounts payable and receivable—that is, what you owe and what you are owed. In order to ensure that money goes out and comes in on time, bookkeepers may complete tasks including generating invoices, sending billing reminders and processing payroll.
- Bank statement reconciliations. In other words, comparing bank and company records in order to identify any errors or discrepancies and make the necessary adjustments.
- Based on the information gathered through financial reporting, bookkeepers prepare financial statements such as balance sheets, or a summary of assets (what you own), liabilities (what you owe) and owner’s equity (their share of a company’s assets). Bookkeepers may also work on profit and loss statements. Also known as an income statement, this is a summary of a business’ income and expenses over a certain period of time.
- Assisting in the creation of a budget and monitoring expenses in order to help businesses stay within their financial plans
- Preparing and organizing financial information in order to make the tax filing process easier and free from errors
Types of Professional Bookkeepers
There are several variations of bookkeepers, and each may provide unique benefits for your business. They include:
General bookkeeper
In other words, your average bookkeeper. While a general bookkeeper likely does not have any specialized training, they have the experience and knowledge they need to manage standard bookkeeping tasks for your business.
Certified public bookkeeper
Like certified public accountants, certified public bookkeepers (CPBs) must acquire a license; in this case, from the National Association of Certified Public Bookkeepers. Gaining this license requires, among other things, the completion of courses; training; professional education; and examinations covering industry-specific topics, including Quickbooks usage.
Certified bookkeepers (CBs), on the other hand, are accredited by the American Institute of Professional Bookkeepers. Before beginning the program, they should have either prior bookkeeping experience or at least a year of college accounting education in order to understand the material. Like CPBs, aspiring CBs will receive training and must complete an exam and gain a set amount of experience before receiving their certification.
Full-charge bookkeeper
Full-charge bookkeepers need a broader range of financial skills, as their jobs often combine traditional bookkeeping with accounting. This allows them to take on tasks such as preparing financial statements, supervising junior accountants and assisting with tax return preparation.
Virtual bookkeepers
These bookkeepers utilize digital accounting software in order to provide their services remotely, something which often makes them a more affordable and flexible option.
Benefits of Hiring a Bookkeeping Service
Bookkeeping services offer a number of benefits for business owners, chief among them being the creation and maintenance of accurate financial records. Not only do these records provide you with the information you need to make informed financial decisions, they can also make tax season quicker and easier for everyone involved.
Bookkeepers also assist in the management of your cash flow, ensuring that payments go out and come in on time and that no bills or invoices slip through the cracks. Any missing payments will be noted promptly, allowing you to maintain a good relationship with employees, clients and suppliers alike. Additionally, on a more personal level, bookkeepers can save you time and stress, as you no longer have to worry about managing your business’ finances yourself.
Get in Touch with Estess CPA to Start Getting Financial Management Assistance Today
Bookkeeping is a necessary part of any business, but it isn’t a task you should be completing alone, as errors in your financial records can lead to costly consequences. Hiring a bookkeeper takes the stress and guesswork out of financial management, allowing you to gain accurate financial insights and ensure money goes in and out on time.
At Estess CPA, we specialize in providing accounting and bookkeeping services to small- and medium-sized businesses across the Greater New Orleans area. Our team utilizes our more than 20 years of experience to help our clients understand and achieve their financial goals, setting them up for success now and in the future. If you are ready to see what a professional bookkeeper can do for your business, Click Here a call or send us a message to schedule an appointment today.
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