The major reason companies fail is because of abysmal accounting. Managing finances should be any growing company's major concern. Most firms find it an arduous task to manage their numbers and record their finances.
This is where bookkeepers come in as an option of much-needed relief to firms both, small and large.
Most entrepreneurs simply lack the knowledge required to track and record money, which bookkeepers, on the other hand, are trained to possess. A firm that needs to stay in the game for long should not ponder on whether they should hire a bookkeeper or not.
As you will learn later on in this article, a bookkeeper not only helps in tracking a firm's cash flow but also helps it make wise financial decisions.
How Can a Bookkeeper Help a Small Business?
It is difficult to take care of your business's day to day function while simultaneously crunching numbers. Bookkeepers provide small businesses with the respite they need to focus on other fundamental aspects of their business while the Bookkeeper keeps track of your business. The following are some of the functions a Bookkeeper performs for its clients.
Managing Bank Feeds
One of the most obvious tasks of a bookkeeper is to manage your daily bank transactions. Bookkeepers keep a keen eye on your bank feeds. This helps them monitor the balance of revenue expenses. They can use this data to provide important advice to owners on how to manage their cash flow.
Management of Accounts Receivable
Bookkeepers can help small entrepreneurs prepare invoices and send them to their clients to track payments to be made. In some cases, they also take it upon themselves to chase outstanding payments to be made to the firm.
Management of Accounts Payable
Bookkeepers also help in making payments on behalf of the company they serve. It is they who make sure payments are made to suppliers, and also take care of the company's other expenses.
Maintaining the Books for the Accountant
Accountants have a major role in keeping the company's finances in check. They have to provide the firm with important financial advice and do proper accounting in compliance with TDS. Accountants cannot perform their tasks efficiently without the help of bookkeepers. Bookkeepers help accountants by providing them with up to date and valid accounts, thus helping them serve their clients efficiently.
Some of the other tasks a bookkeeper can perform for small businesses are.
- Maintenance and review of a business' internal processes.
- Implementing Point of Sales system to record daily transactions in case of retail business.
- Training clients on the use of accounting software.
How To Choose a Good Bookkeeper
By now we have made it clear that if you want to find success in entrepreneurial endeavors, it is imperative to find a reputable bookkeeping service to manage the most crucial part of your business. But, how do you know which bookkeeper is good and which is not?
Here are some of the qualities you should look for in a bookkeeper.
The first thing you should check when you are looking a good bookkeeping service is the reputation that the firm has earned over the years in the market. Check for previous client testimonies that cement the firm's reliability.
Make sure that the bookkeeper you hire is a good communicator as he has to convey his recordings to you and also provide valuable financial advice to help you sustain your business.
Knowledge of The Subject
This goes without saying that an individual with intricate knowledge of the finance subject is a good bookkeeper for your business. They should comprehend the importance of a company's income, expenses, assets, liabilities, etc.
Up to Date with Changing Times
A good bookkeeper is always up to date with changing laws and regulations. A bookkeeper who is not aware of the current climate of tax regulations can commit mistakes with severe legal repercussions. The bookkeeper should also be aware of new software and technologies that make accounting convenient.
Understands the Industry of His Client
A bookkeeper has to be aware of the industry your company belongs to, as without its knowledge, the bookkeeper cannot study the industry trends and thus not provide appropriate financial solutions depending on the situation.
How Much Does It Cost to Hire a Bookkeeper?
If you are really serious about growing your business then investing in a good bookkeeper is something you should definitely consider. The cost of hiring a bookkeeping service can vary on the basis of the level of service required by the bookkeeper.
Depending on the number of transactions and services required, the cost can range from anywhere between 400$ to 2000$ per month. The cost also depends on the reputation of the bookkeeping service you opt for.
Investing in a bookkeeper who is proficient, reliable, and sharp with managing numbers is a worthy expense a business can make. Entrepreneurs can focus on the tasks that require their attention by leaving the financial part to experts.