Bookkeeping services are essentially the nuts and bolts of maintaining your business's financial health. Here's a breakdown of what bookkeepers typically do:
- Transaction recording: This involves recording all your business's financial transactions, including income, expenses, bills, and payments. Bookkeepers ensure this data is entered accurately and categorized correctly.
- Financial reports: They generate financial reports like income statements and balance sheets, which summarize your business's financial performance and position.
- Bank reconciliation: This is the process of matching your bank statements with your internal financial records to ensure everything aligns.
- Accounts payable & receivable: Bookkeepers can manage your accounts payable (money you owe to vendors) and accounts receivable (money owed to you by customers). This includes sending and receiving invoices and keeping track of outstanding payments.
- Payroll processing: Some bookkeeping services include processing payroll, calculating salaries and deductions, and ensuring timely payments to employees.
In essence, bookkeepers provide the foundation for understanding your business's financial well-being. Their work ensures your financial records are accurate and up-to-date, which is essential for tasks like tax filing, securing funding, and making informed business decisions.
