You probably are the best at everything you do, including running your business. However, sometimes, a few things require full attention; one petty mistake can lead you to pay a hefty amount, and you don’t want any surprises when you already have so much on your plate.
Hiring a professional accountant can make a difference.
A good bookkeeper does more than just crunch numbers; they make sure everything is right, follow the rules, and help you feel at ease. They manage your expenses, send out invoices, organise your finances, and prepare reports. That way, you can focus on making your business better.
Bookkeepers provide essential financial services that keep your business organised and set up for growth.
Whether you’re just starting out or have been in the game for a while, understanding how a bookkeeper can help can save you time and money. This guide will explain what bookkeepers do and how they can benefit your business.
What Does a Bookkeeper Do?
Bookkeepers take care of the everyday money matters for a business. They track income and expenses, match up bank statements, and keep all the financial info organised so you can see how your cash flow is doing. Whether you own a small or larger business, a bookkeeper ensures your numbers are right and current.
Core Bookkeeping Services
Wondering what bookkeepers do? They handle the everyday financial tasks that keep your business running smoothly and ready to grow.
Recording Financial Transactions
Bookkeepers make sure all your transactions, whether money is coming in or going out, are logged correctly in your accounting software. This creates a clear financial trail you can trust.
For example, a bookkeeper at a small bakery will track daily sales from the register, payments to suppliers for flour and dairy, and fees for delivery apps like Uber Eats.
Categorising Income and Expenses
After transactions are recorded, bookkeepers sort them into categories. This makes it easier to see where your money goes and helps with tax time.
If you own a creative agency, a bookkeeper would categorise things like Adobe Creative Cloud as software expenses, Facebook ads as marketing costs, and coworking rent as overhead.
Managing Accounts Payable and Receivable
Bookkeepers also track who you owe money to and who owes you. They ensure you pay your bills on time and receive payments promptly.
For a clothing retail business, a bookkeeper will handle payments owed to fabric vendors and check in with clients to collect overdue invoices.
Bank and Credit Card Reconciliation
Bookkeepers match your internal records monthly with your bank and credit card statements to ensure everything lines up. This helps catch mistakes early and prevent fraud.
For instance, if a restaurant has a kitchen equipment expense of $2,000 but the bank only shows $1,500, the bookkeeper will notice the difference and correct it before final reports go out.
Payroll Processing
Bookkeepers often manage small businesses’ payrolls, calculate wages, apply tax deductions, and ensure everything is submitted on time.
At a local daycare, for example, the bookkeeper handles bi-weekly payroll, accounts for holiday pay for full-time staff, and submits all necessary deductions to the tax office.
Financial Reporting
Finally, bookkeepers create reports showing your business’s financial health. These reports help you plan, budget, and make informed decisions.
A freelance photographer’s monthly profit and loss statement might reveal that 60% of their income comes from wedding shoots, prompting them to focus more on that area.
Benefits of Professional Bookkeeping
After you figure out what bookkeepers do, you might wonder why it’s important. The perks go beyond just neat records; they can help you run your business more smoothly and with less stress.
Better Accuracy and Fewer Mistakes
If you often lose receipts or forget to log payments, a bookkeeper can help you organise. They catch mistakes early, stop double entries, and make sure everything adds up.
Also, a bookkeeper comes in handy if you want clean records that are ready for audits without the headache of fixing errors during tax season.
Saves You Time and Reduces Stress
If you spend your evenings sorting out expenses instead of planning your next project, it might be time to hand off some tasks. Bookkeepers take care of routine work so you can concentrate on growing your business.
Whether you have a small team or are running things solo, gaining back just a few hours each week can help.
Better Cash Flow and Financial Understanding
If you’re unsure how much money you have to spend or if you can afford a new hire, a bookkeeper can clear things up. They track what comes in and goes out, helping you see your financial trends.
Regular reports and updates can make a big difference if unexpected cash flow issues keep messing up your plans.
Improved Compliance and Audit Prep
If the thought of a CRA audit stresses you out, professional bookkeeping can help ease your mind. Keeping accurate records and filing on time reduces risks and enables you to stay compliant.
If you work in a regulated field or need to collect sales tax, a bookkeeper makes sure all the paperwork is done correctly, helping you avoid penalties later on.
How to Choose the Right Bookkeeping Service
Now that you know what bookkeepers can do, it’s time to find the right one for your business. Not every bookkeeper is the same, so think about what you need.
Consider The Services You Need
You might not need a full-service bookkeeper if you need to keep track of basic transactions. But if you need help with payroll, tax reports, or managing cash flow, look for someone who offers more than just the basics.
If you plan to grow your business, make sure your bookkeeper can keep up with that growth and isn’t just focusing on your current needs.
Check Their Technology
The tools they use are important if you want to access your financial information in real-time or prefer cloud-based solutions. Ask which software they work with, like QuickBooks Online or Xero, and how they keep your data safe.
If you prefer to avoid paper and want everything automated, a tech-savvy bookkeeper can save you a lot of time and hassle.
Compare Prices and What You Get
If you’re watching your budget, don’t just pick the cheapest option without checking what’s included. Some people charge by the hour, while others have a flat monthly fee.
If you like knowing your costs upfront, go for a bookkeeper who is clear about their prices and what services they provide.
Look for Industry Experience
If you run a specific type of business, like eCommerce, construction, or a creative agency, you’ll want someone who knows the ins and outs of your industry.
A bookkeeper with experience in your field will know what categories to track, what reports you’ll need, and what potential issues to be alert to.
Conclusion
Knowing what bookkeepers do shows how helpful they can be for your business. They handle everything from tracking daily transactions to creating financial reports and ensuring you meet legal requirements. A good bookkeeper does more than keep the numbers straight; they help you relax about your finances.
Bringing in a pro might be a good idea if you’re tired of not knowing where your money is going, missing tax deadlines, or feeling swamped by financial stuff. Whether you’re just starting or growing quickly, having solid bookkeeping support can help you make better and more confident choices.
