Are you confident that your books are in order and up to date? If not, how do you get accurate books? The bookkeeper is your business’s financial foundation. And like a house, you can’t build on a shaky substructure! At the end of this blog, you should know what you can expect your bookkeeper to do for you and your business.
A great bookkeeper can give you peace of mind.
A top-notch bookkeeper understands that when the correct data is in the right place, it creates a complete and accurate picture of your company’s health. They gather your financial data from various source documents and enter those transactions into your accounting software in very specific categories and know the transactions that need to be on your Profit & Loss statement and the Balance Sheet. For example, if you get a loan, it would be recorded as a liability, not revenue. Those details create the snapshot, called a Financial Statement.
Bookkeepers are skilled professionals that keep your financial house in order so you can leverage that information to grow your business. A dedicated bookkeeper is key to your financial success.
What should you expect your bookkeeper to do?
These days, bookkeepers are assisted by accounting software (like QuickBooks). A great bookkeeper knows that the accounting software is a tool and it’s their knowledge and skill that is required to make it useful.
Competent bookkeepers:
- Reconcile cash weekly and monthly
- Pay bills by due dates
- Enter and send invoices and follow up on delinquent accounts
- Have the knowledge to differentiate various incomes and expenses correctly
- Post journal entries
- Are organized and detail-oriented
- Understand the full bookkeeping cycle for the business
- Prepare and file city returns
- Prepare and file payroll returns and deposits
- Prepare year-end 1099s
- Are skilled and up-to-date in the company’s accounting software
They are prompt in inputting the transactional data and answering questions. If they don’t have all the information they need, they’re good about seeking information regarding specific transactions or requesting further documentation. They keep digging until they find it. And, they are diligent about getting and keeping your books up-to-date. They close the books on time! Month-end is month-end.
They’re good communicators, and they know how to get things done because they know where to go and whom to ask.
Don’t-let-them-get-away bookkeepers know all the details about their jobs and the terms used in their profession. Debits, credits, assets, liabilities and equity are more than just words. They have meaning. They are tools that build the financial house and make it strong.
Conclusion:
We’re firm believers that having a separate bookkeeper, outsourced accountant, and controller or CFO is the best way to staff your accounting department. Accurate and timely data from the bookkeeper make better reports for the accountant, which creates a more trustworthy framework for your company’s strategic decision-making.
Contact LSL CPAs if you have questions. We’re here to do more than accounting. We help people make better decisions.
