Whether you are a small business owner or a startup, the job of a professional bookkeeper is to ensure that you are following standard business practices and also offer you all the financial information you need to make better business decisions. From preserving the data of daily transactions in the general ledger to delivering in-depth financial reporting; here are the most important tasks that a professional bookkeeping service can perform to ensure smooth functioning and growth of your business;
Collecting Key Financial Reports
Every business, either small or large, is operated with an objective to earn more profit than it spends. But, how will you figure out whether your business is earning the desired fortune or not? In order to conclude, whether your business is making a profit or not, you need to review an array of financial reports. Of particular importance — especially in the startup phase, where cash is often in short supply — is the cash flow statement. If you or your bookkeeper don’t understand the consequences of this statement, the outcome could be tragic.
Performing Regular Reconciliations and Closings
There are two methods of accounting – cash method or the accrual method, which method does your business use? An experienced and knowledgeable bookkeeper can advise you on which method makes sense for your business and then set up a bookkeeping system accordingly. A professional bookkeeper is well aware about the importance of tracking the finances in the real time, so that when the month ends, the month-end closing is almost done. Putting in place a system of daily, weekly, monthly, quarterly and annual bookkeeping tasks will help keep your business organized and give you up-to-date financial information.
Maintaining Accurate Tax Records
It is crucial that the bookkeeper your hire maintains accurate records of your tax – it is properly coded, categorized and tracked not just at the filling deadline but throughout the year. Keeping a proper track of your record tax record will enable you to not only keep up with all the required forms, but also prepare your firm for an unexpected IRS or state audit.
Keeping Business Expenses and Personal Expenses Separate
This point is especially for the business owners who are maintaining their accounts and tax on their own without any professional help. If you are mixing your personal and professional finances, then there is a higher chance of liability — even jeopardizing your personal assets. If you want to benefit you and your business by the protection offered by a business entity, then it is necessary that you create a firewall between your two financial worlds. And, this can be done by separate bank accounts, separate credit cards and separate sets of books.
Even you can conclude from the above mentioned points that no business is complete without the help of professional bookkeeping services. If you cannot hire an in-house bookkeeper, then there are small business accountancy firms like Affinity Associates to take care your finances professionally. To know more about how bookkeeping services for small business works and how it benefits them, please contact Affinity Associates for a free consultation https://www.affinityassociates.com.