For small business owners, it will be a big question if they will be hiring another staff or not. Therefore, employing a bookkeeper might be a serious decision for you. You will be bombarding yourself with questions why you need to hire a bookkeeper for your business. To make things easy for you, we presented the five basic duties of a bookkeeper which can greatly help you and your business.
1. Keep track of day-to-day transactions
One of the duties of a bookkeeper is to handle the recording of day-to-day transactions, including bank transactions. If your business has the available accounting software, then it already has its own daily automatic bank feed. It will be easier for the bookkeeper keep an eye on the cash flow using this tool. The bookkeeper can also save time on data entry with this tool.
2. Keeping an eye on cash flow
This is one of the most important tasks of a bookkeeper to handle. They need to make sure the company has enough money for their day-to-day expenses by monitoring the business’ revenues and expenses. Problems can be immediately solved if the bookkeeper can point out discrepancies in the cash flow.
3. Sending of invoices, managing accounts receivable and account payable ledgers
Bookkeepers are usually tasked to prepare and send invoices to clients. In line with this, they are also responsible for the receivables of the company. They usually track late payments from clients, making sure they pay. Along with the receivables, they are also responsible with the payables. These payables include payment for supplier invoices, expenses, and petty cash.
4. File and archive documents
It is also a bookkeeper’s job to file all documents into appropriate folders. They need to ensure that all folders are properly segregated and should be cleared from old documents by archiving them. If electronic filing is available, the bookkeeper should update the system.
5. Prepare the books for the accountant
Lastly, the bookkeeper’s job is to prepare the books for the accountant. The bookkeeper should make sure that all the information are accurate and up-to-date so that the accountant can accurately make business recommendations, report to the board, and complete company tax returns.
These are just some of the duties of the bookkeeper. They always play an important role in a business–therefore, it is a good investment to hire a bookkeeper for your business.
Eclat Accountancy Ltd offers a lot of accounting services to choose from. They have professional bookkeepers and accountants you can hire. Visit their www.eclataccountancy.co.uk