If you are starting a new business, hiring a bookkeeper may not be as appealing as taking care of other aspects of your business. In fact, you may even consider it unnecessary since you are just starting out. However, as your business is taking shape, you will realise that you need to keep accurate and complete records of your expenses and income. If you need to take care of so many things, it is unlikely that you will think about your bookkeeping requirements.
This is where problem arises because you are not fully aware how your business is doing. As a business owner, you need to gather information relating to expenses, salaries, bank transactions and much more. A bookkeeper can help you put things in proper perspective. Here are the tasks that a bookkeeper can keep an eye on:
Your daily bookkeeping tasks
Bookkeeping cannot take a backseat as the performance of your business will serve as an indicator whether or not you should move forward. Daily bookkeeping tasks include checking your cash position. Your bookkeeper has to know if you have enough cash to cover outgoing payments.
Your weekly bookkeeping tasks
Record keeping is essential so business owners can keep track of how money is spent and how your business generates profit. A bookkeeper’s weekly task can include recording transactions, preparing and sending invoices, filing documents and receipts, paying suppliers and reviewing your cash flow. All of these tasks are important because they can tell your which direction your business is taking. For instance, sending invoices ensures that there is a steady cash flow coming into your business. Recording your transactions helps you to keep track of the money coming in from your customers and payments made to your suppliers and employees. Since your bookkeeper takes care of the payment due dates, you will be reducing the risk of paying for late payment penalties. The bookkeeper is also in-charge of reviewing your cash flow so you will know if your business has enough cash for the coming weeks or even months.
Your monthly bookkeeping tasks
You will also need a bookkeeping professional for running your payroll, reviewing incoming and outgoing payments and checking your bank statements. Your bookkeeper will let you know if there are any late payments you need to collect or if all payments that were due have already been settled. Your bookkeeper will give you a summary of the performance of your business. The summary will be used in comparing the performance with past months. This enables you to determine if your business is growing.