What Bookkeepers can do for Small Businesses?
Bookkeepers do lot of things on day to day basis for small businesses comprises of producing and sending invoices to the clients, chasing payments, processing payroll and preparing small businesses for tax deadlines. These are just some of the things which we are counting as bookkeeper perform lot of tasks for small businesses which are as follows –
1. Manage Day to Day Accounts
A bookkeeper manages books of accounts on daily basis and records business transactions. Bookkeeper tracks every single sale or purchase transaction done by small business with the help of software. By using software, it becomes easier for bookkeepers to keep eye on their cash flow and it also saves plenty of their data entry time.
2. Maintain Up to Date and Accurate Records
Bookkeeper is responsible for updating business records daily and ensures business that everything is going fine in the books of accounts. If any problem occurs between the books and business accounts, it is the responsibility of bookkeeper to resolve that problem as early as possible.
3. Run Your Business as per Laws
As you all know, tax matters are very sensitive andone mistake can create a big problem for your business. Nobody wants a letter from HMRC in relation to tax matters. Therefore, make sure that you run your business as per prescribed laws.
4. Prepare Small Businesses for Tax Deadlines
Like laws & regulations, strict tax submission deadlines are also the matter of priority for small businesses. Taxes should be submitted to HMRC before the deadline unless it will incur fines & penalties. Hence, Bookkeeper must ensure that the business records are accurate and updated and you are always prepared for filing tax.
5. Manage Bank Feeds
Previously, bookkeeper manages bank transactions brought in through software like an app. In today’s time, bank feeds allows you to see each & every transaction in real time by linking software with your business bank account.
6. Handle Accounts Payable
Generally, bookkeepers make payment on behalf of small businesses too. It includes payment of expenses, petty cash and supplier invoices.
7. Send Out Invoices and Manage Accounts Receivable
The other duty performed by a bookkeeper is managing of accounts receivable ledger. He prepares invoices and sends it to your clients so that you can receive payments on time. He chases clients for late payments too.
8. Prepare Financial Statements
Bookkeepers are also responsible for preparing financial statements for small businesses which includes profit & loss account, balance sheet & a cash flow statement.
P&L account depicts the expenses & revenues of the business for a particular period. Balance sheet shows the financial position of the business on a particular date. Cash flow statement shows the cash inflow & outflow position of the business.
9. Payroll Processing
The services offered by a bookkeeper varies sometimes as some bookkeepers perform tasks such as payroll and involved in other HR functions too. Some bookkeepers also assist businesses with processing of paychecks & making tax payments to employees.
10. Deals with Foreign Currency Transactions
Bookkeeper also perform the responsibility of maintaining foreign currency accounts & utilizing current exchange rates. With the help of compatible digital bookkeeping apps, you can easily analyze the exchange rates within seconds without wasting much of your time.
11. Performs Stock Take
Bookkeeper also count stock items for small businesses and produce inventory reports. If any discrepancy occurs in the stock items, same should be reported back to the business as early as possible so that an immediate action can be taken.
This process is carried out by the bookkeeper at the end of the financial year and the figures are included in P&L statements.
12. Keeps an Eye on Cash flow
One of the most important tasks done by a bookkeeper for small business is to ensure that business will not run out of cash on day to day basis. It is only possible when bookkeeper keeps an eye on balances of revenues and expenses as well as advice business to provide more cash, if there is a need of cash or cash shortage.
13. Prepare Books for Accountant
It’s the bookkeeper’s job to ensure that all the books prepared by him are correct, updated and available for accountant anytime, whenever he needs it. These books help accountants to make business recommendations as well as tax return filing.
How Nomisma Cloud Accounting Software help Bookkeepers?
Our cloud accounting software helps Bookkeepers in the following ways –
- It makes strong coordination between business owners and bookkeepers.
- It makes bookkeeping & payroll tasks faster.
- It allows automatic data entry and bank reconciliation.
- It helps in increasing your client base.
- It provides you opportunity to work with any business owner across the world.
- It helps in generating many powerful reports such as VAT reports etc.