Bookkeeping involves the preparation of business accounts. It entails the recording of financial transactions on a daily basis. Paperwork detailing these transactions is usually processed. Sales and expenses are recorded in a general ledger. Software such as Quickbooks is involved in bookkeeping.
A bookkeeper should be able to reconcile the bank accounts of a business. This ensures that the details of transactions on financial statements match those in the accounting software. This is necessary to ensure that transactions are recorded correctly to avoid fraud and overdraft fees.
A bookkeeper should be able to handle accounts receivable for a small business. This involves the creation of invoices for customers. Sending these invoices and providing statements to customers is all part of accounts receivable tasks. Clients can also alert the bookkeeper when they make payments.
Accounts payable involve bills that a business receives. Deadlines for payment that need to be made should be noted by a bookkeeper. They will ensure that payments are made to various vendors. Proper management of these accounts will solidify relationships with suppliers.
A business needs a bookkeeper to prepare its financial statements. These include the profit and loss statement, cash flow statement and balance sheet. These statements need to be updated regularly. Preferably, this should be done on a monthly basis.
The expenses incurred through operations are shown in the profit and loss statement. This statement also shows the bottom line of a business. The balance sheet, on the other hand, shows the liabilities and assets of a business. Cashflow statements show how much money is coming into and out of a company.
Businesses need bookkeepers to process their payrolls. A bookkeeper is able to help a business prepare its payroll. He or she can input data into the payroll system. This happens after reports are submitted by the payroll provider. Alternatively, data can simply be imported.
Tax payments can also be made by a bookkeeper. Management of timesheets can also be done. This can be for hourly workers or for overtime.
Tracking and managing bank feeds is important for every business. A bookkeeper is able to manage the bank transactions of a business. Linking the bank accounts of a business with its accounting software enables this to happen. A business owner can monitor transactions in real time through this.
Small businesses need bookkeepers for many reasons. UptoDate Bookkeeping prides itself in offering quality, accurate and efficient bookkeeping services. Whether it is outsourcing that you require or just setting up and organizing your bookkeeping, we are here to help you. Visit www.uptodatebookkeeping.com for all solutions regarding bookkeeping for your business.