Bookkeepers, whether virtual bookkeepers or those who come to the office every day, provide small businesses with essential services. It’s the bookkeeper who ensures that a company’s financial picture is accurate and up-to-date. Small business owners can use this information to make business decisions like whether to expand. Banks and other lenders may request this information to determine credit-worthiness, too. Here’s an overview of what’s expected of a bookkeeper.
Bookkeepers Collect and Record Financial Data
The primary task of a bookkeeper is to record financial transactions accurately. Most bookkeepers, virtual or in-house, do this in specialized computer software programs, although some might still do it on paper in rare cases.
On a day-to-day basis, bookkeepers record payments received, whether they’re cash or checks. They may also gather bank deposits and fill out deposit slips. Deposit receipts are turned into the bookkeeper who uses them to reconcile the bank statement at the end of the month. Bookkeepers also record payments made by the business, such as which bills are paid on what date and the amount due.
Bookkeepers Prepare Financial Reports and Lead Problem Resolution?h2>
Bookkeepers perform the necessary tasks that make financial reports possible. They record costs (or debits) and income (or credits) into the right accounts. They balance the books monthly, checking for accuracy as well as resolving any discrepancies. Bookkeepers also prepare standard financial reports, such as balance sheets and income statements. These are the kinds of reports that small business owners use to determine if their business is profitable. If there’s an error in these reports, a bookkeeper will go back over the ledger (recording of financial transactions) to find the error and fix it.
Contact a Virtual Small Business Bookkeeper Today
Bookkeeping is a vital service for small businesses. Small business owners can expect bookkeepers to keep a detailed and accurate recording of all incoming and outgoing financial transactions, as well as reconciling bank statements on business accounts. Another duty of this job is to produce financial reports that show an accurate picture of how the business is doing. Small business owners can use these reports in making decisions, including as supporting documentation for loans. Contact AMR Bookkeeping today for help with your small business bookkeeping!
