Bookkeeping is one of the biggest challenges for all businesses irrespective of the size and nature of the business. Initially, bookkeeping might seem like a simple task where you can keep track of all business activities and transactions. However, soon business owners realize that opening consumes a lot of time that could be otherwise used for expanding and promoting the business. Errors in bookkeeping can only aggravate the situation and therefore it is important that you look for small business bookkeeping services to help you keep your records clean.
A bookkeeper is a person or a team in a company that records all the financial transactions and activities of the business. In general terminology, accounting clerk is the bookkeeper for the firm. He or she is liable for keeping the accurate financial and business transactions of the company.
While it might be easier to say that business owners can do their own bookkeeping, but bookkeepers play an important role in a business entity. In fact, every business small and large would need a bookkeeper to ensure the business is smooth and all the transactions are recorded accurately.
Let’s take a quick look at the roles and responsibilities of a bookkeeper in any organization.
The competitive business world does not offer any room for error. Hence, it is not easy to manage the competition and earn profits at the same time. Hence, the first thing that businesses do to earn a profit is to cut cost. However, as the business grows the need for bookkeeping becomes much more important as you cannot look into all aspects of the business.
One of the reasons why you need professional bookkeeping services is to ensure that you make a profit. Hiring a bookkeeper allows you to know how much profit your business has earned. Bookkeepers’ record and store genuine business and financial transactions allowing you to gauge the true position of your company. With the accurate financial information, you can see your inflow vs. outflow to determine how much profit you make.
As a small business company, you would think of hiring an in-house bookkeeper that would look into your business and financial transactions. However, the cost of training a bookkeeper is certainly higher than hiring a small business bookkeeping services and accounting services.
When you hire a professional bookkeeping company you can delegate certain responsibilities to the bookkeeper. Companies that offer services for bookkeeping to small business can handle financial data backup, compliance-related issues, updating bookkeeping programs and software and indemnity insurance-related issues.
Accounting bookkeeping services can also offer you guidance in planning a well-formulated budget to help you save expenditure and increase income. They can also help you with handling your tax related issues.
A professional bookkeeper would also assist you with various other issues related to financing, IT, pricing, marketing and other financial advice and suggestions.
At times, it might seem confusing if your business really needs a bookkeeper. However, here are some scenarios which would clearly indicate that it is time you need to hire a bookkeeper for small business that can help you record your business and financial transactions.
Bookkeepers are good at collecting, identifying, analyzing and filing documents, receipts, invoices and other transaction details. They normally use the same methods as accountants recording all the data in accounting software. Bookkeepers are also responsible for data reconciliation – ensuring records match business cash transactions and bank statements.
Professional accounting services companies manage business repayments, produce invoices, allocate funds for corporate tax, calculate investments and interests, and monitor purchase orders and maintain a journal of asset depreciation.
Most people who come from the non-financial background cannot differentiate between a bookkeeper and an accountant. While both the job positions are related to accounting the role of the bookkeeper initiates the entire accounting process.
Let’s take a quick look at key differences between a bookkeeper and an accountant.
Most businesses are unsure about when they should hire an accountant or a bookkeeper, or that they should hire both. The answer would depend on what kind of company you have and how quickly your business transactions are growing. Bookkeepers are ideal for small businesses that require regular but not-so-much attention to their accounting records.
These bookkeepers are ideal for managing small business expenses. However, if you have a complex organization you would want to hire an accountant that would support the bookkeepers and ensure fewer errors in accounting. Having an accountant also means you have someone that can have an analytical mind on how you manage your business. This ensures that your business records are clean and there are low chances of financial fraud and theft.
FinForce offers accounting, finance and bookkeeping services in India allowing businesses to focus on their core business areas. Our team of professional bookkeepers collect, identify, analyze, classify and file documents of business and financial transactions. Over the years, we have helped many accounting firms, entrepreneurs and small and large business owners to create a better functional financial strategy.
Contact us right away to know more about how our bookkeeping expertise can add value to your business