When it comes to maintaining your books, a bookkeeper should play an important role. It is critical that you discuss your concerns with your bookkeeper and this is where setting up a bookkeeping system comes in. There are businesses that are dragged into a lawsuit because of mishandling funds. Your business cannot afford bad bookkeeping because it can have a devastating effect on your business especially if you have not fully established it.
The roles your bookkeeper should play:
1. Keep records of incoming and outgoing invoices. One determining factor that a business owner has an efficient bookkeeper is when financial records are kept clean and up to date. A bookkeeper that can chase unpaid invoices will not have trouble managing cash flow. They will also present information that you can use so you can determine where your business is going.
2. Ensure records are current and up to date. A business owner will have difficulties keeping a regular reporting system in place if the bookkeeper cannot update financial records. One of the primary duties of a bookkeeper is to keep records of every business transaction and see to it that the accounts are balanced on a monthly basis. It is easy for a bookkeeper to lose track of these records if they do not give importance to the financial records.
3. Keep up with the bookkeeping updates and software. A bookkeeper should also keep up with the changes in the industry such as using an advanced bookkeeping system. A knowledgeable bookkeeper should have the ability to use bookkeeping software so more tasks are done in a timely manner. The software is known for reducing the amount of time spent for entering essential data.
4. Coordinate with the accountant. The duties and responsibilities of a bookkeeper differ from the accountant. However, they should work as a team for the positive results to be obtained. A bookkeeper should consult with the accountant to ensure that the system is set up properly. Working with the accountant also assures the business owner that the records are up to date and accurately entered. When bookkeepers and accountants are working together, errors and inaccuracies are addressed before any costly mistakes can be committed.
5. Ensure payments are lodged. Tax payments are also important for a business owner. If you fall behind the payment schedule, this can hurt your business especially if it happens frequently. A bookkeeper who is keeping track of these important dates will remind a business owner that it is time to make a payment. As a result, penalties are avoided and your business continues to operate with greater peace of mind.