Proper bookkeeping is critical for every type of business. This information can help shed light on how a business is doing, and where improvements need to be made. While many small business owners take on this task on their own, there are times when hiring bookkeeping services may be more practical.
Before rushing out and hiring just any bookkeeping services firm, it is important to have an understanding of what you should expect from these professionals. Below are some of the most common duties.
One common task that bookkeeping services provide is the reconciliation of bank statements. This is done by providing a document that highlights any differences between the amount of cash shown on the bank account statements, and the actual cash balance within the company.
This helps to check for mistakes in either the company’s records or the bank’s accounting. Trial balance sheets are another service that bookkeeping professionals should provide. This is a type of worksheet that verifies accounting balances were figured properly.
Financial statements must also be prepared by the bookkeeper. These statements help with decision making, as the business owner can determine the financial health of the company, where the company is under performing, and areas that could be improved. If the company has shareholders or stakeholders, creditors, suppliers, or even other involved agencies, these documents are essential.
A bookkeeper must also maintain the general ledger for the owner of the business. This ledger will contain all raw data, which is then summarised and classified to later be used in financial statements and trial balances. Accounts receivable and accounts payable should be maintained by a bookkeeper or bookkeeping services firm as well. This data tracks all unpaid transactions, in addition to compiling a list of who the company owes money to. Finally, a bookkeeper needs to process payroll.
Payroll services issue payments to employees, calculate bonuses, track deductions, make sure the proper taxes are withheld, and ensures all payments to outside sources are handled properly. In addition to knowing what is expected of a bookkeeping firm, a business owner should also take some time to determine the exact needs of the company, find a bookkeeper close in proximity to the company, and compile a list of possible options.
From this point each potential candidate should be contacted, fees should be compared, and references should be acquired. This will ensure you find a reputable firm that will provide you with exactly the services you need, at a price you can afford.