13 Reasons Why You Need To Hire A Bookkeeper For A Growing Business

Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. They’re always taking the pulse of a business. Most often, their reports go to business owners and managers to help them make decisions. Some bookkeepers, however, are involved in strategy development. But how can bookkeepers help you as a growing business and are they worth the investment? Let’s focus on 13 major reasons why you need to hire a professional bookkeeper for small or growing businesses. Here we go!

1. Day to Day Management of Accounts

A bookkeeper can stay on top of your business accounts daily for all transactions. Your bookkeeper will maintain all your financial transactions by inserting them into the system routinely and accurately, allotting them to the accurate accounts in your accounting software, and generating weekly or monthly reports that can contribute significant information on your business performance. By keeping track of every sale or purchase using software, it is much easier for them to keep an eye on your cash flow. Plus, it liberates lots of data entry time. They can also monitor who is spending what and distinguish any possible excess expenditure.

2. Maintain Up-to-Date and Accurate Records

A bookkeeper will make sure that all your business records are up to date. It will be their job to flag any discrepancies within the books and your business accounts, making certain that you settle the problems as soon as possible

Also Read:- Right Bookkeeper For Your Small Business

3. Keep Businesses Regulated and legal by Strictly Following the Law

Tax can be a sensitive area. One blunder and a dreaded letter from the respective tax regulation authority can shortly be on your door. That is exactly where bookkeepers come in, as they can assist you in making sure that your business stays aligned with the applicable laws.

4. Keep You Prepared for Tax

As the laws and regulations, tax deadlines are strict as well. Managing the books is customarily never the superiority for several small businesses, so deadlines can often be disregarded. To keep the taxman happy and prevent you from paying any additional penalties, a bookkeeper will make sure your records are accurate, so you are always prepared for tax seasons.

5. Manage Bank Feeds

At a basic level, bookkeepers manage transactions brought in through software, like an app. Bank feed, which links the software with your business bank account, allows you to see each transaction in real time.

6. Handle Accounts Payable

It is usually the bookkeepers who make payments on behalf of your small business. This can include anything from payment of supplier invoices to small bills, and expenses. Most online accounting software packages link directly to business bank accounts. Your bookkeeper can download banking data directly into your accounting system and allocate payments and receipts into the system.

7. Send Out Invoices and Manage Accounts Receivable

Another big responsibility of bookkeepers is that they prepare invoices and send them to their clients so they can receive payment on time. A fundamental cash flow driver of every small business is receiving money from customers. Managing the accounts receivable ledger is also likely to be done by a bookkeeper - as well as chasing up late payments so your records are always accurate. A skilled bookkeeper will make sure that invoices are sent promptly, catch up on late payments, and handle all cash coming into the business. This role can often be the make or break of a small business.

8. Prepare Financial Statements

Bookkeepers will also be accountable for preparing some vital financial statements for small businesses. These can include a profit and loss statement, balance sheet, and cash flow statements. These financial reports show a business's bottom line and operating expenditures, the balance of assets, liabilities, and the cash rolling in and out.

9. Process Payroll

The services bookkeepers offer can diversify. Some can also fulfill payroll and other HR functions for small businesses. This can include assisting businesses with the processing of paychecks and tax payments to employees. A bookkeeper is finely befitted to manage all payroll subjects. Having a bookkeeper will save you an immense amount of time if your payroll is done weekly or fortnightly. They can verify timesheets, pay necessary taxes, allocate any commission-based payments and process the payroll as you would. And since they will oversee finances, they can warn you about any cash flow issues before the money is paid out.

10. Deal with Foreign Currency Transactions

Bookkeepers also make sure to maintain accurate foreign currency accounts, utilizing current exchange rates. This can be made much easier with compatible digital bookkeeping apps that can instantly analyze exchange rates without wasting much time.

11. Perform Stocktake

For small businesses, bookkeepers also produce inventory reports by counting stock items. If there are any discrepancies, they report back to the business to make sure you can address problems quickly. It’s most carried out at the end of a business's financial year-end with the figures featured in reports such as profit and loss statements.

12. Keep an Eye on the Cash Flow

One of the most essential tasks a bookkeeper will do for a small business is making sure they don’t run out of day-to-day money. They can do this by keeping an eye on the balance of revenues to expenses, along with offering more advice if the business needs more available cash to operate.

13. Preparing the Books for an Accountant

It’s a bookkeeper’s job to make sure that the accounts are valid and up to date when the accountant needs them. This lets an accountant use their knowledge to make business recommendations and complete any tax returns.

Also Read: Benefits of Hiring a Remote Bookkeeper

Do I Need a Bookkeeper for My Small Business?

You doing your own bookkeeping is free. And that's the biggest draw, but it can be complicated, time-consuming, and can take you away from running your business.

But if you decide to hire someone to do your bookkeeping, it not only helps save you time but also gives you confidence. Your books are being done properly and make tax time a whole lot easier. If you aren't sure who to hire, you can either check previous blogs on our website www.globalfpo.com/blog for a quick insight on “How to hire a professional online Bookkeeping service for small businesses” or we can give you a quick conclusion here itself. You can go for Global FPO bookkeeping and accounting services for the best results on your online Bookkeeping service and accounting services as well. Here’s a quick intro about us!

you can approach us anytime 24/7, for any bookkeeping, accounting, or tax preparation services and consultation. We are always there to help. We are Global FPO.

Global FPO (www.globalfpo.com) is an Outsourcing Accounting firm consistently recognized for its exceptional outcomes and strong work culture, with 500+ happy and satisfied clients across. They provide everything from straightforward tax return work, or virtual bookkeeping, to advance & complex Financial Statements to CPAs & Accounting Firms implementing best industry practices & values. Their Accounting solutions are comprehensive, customized to a unique business operating model, and use “best-of-breed” technology under a strong two-tier reviewing mechanism ensuring the minimum risk of error.

Global FPO is a professional outsourcing and consulting organization offering services across the globe including the USA, Canada, UK, Europe, Australia, New Zealand, Japan, Dubai, and the Far East. GFPO experts provide services at competitive prices to our clients in the areas of:

1. Bookkeeping & Controller level services
2. Tax Filing,
3. Payroll processing
4. Accounting Advisory and GAAP Reporting
5. Audit and Transformation consulting

To explore more on Global FPO and its online Accounting/ Bookkeeping, Tax Return Preparation, Financial Statements, Accounting Advisory, Payroll Processing, and related Business Services contact us at:

Phone (USA): +1 (832) 426-2521, +1 (347) 781 5928 or Email: contact@globalfpo.com.