Bookkeepers and accountants are two different professions but both play an important role. Dealing with a number of things at once is not easy. Being a business person you will be familiar with this. Revenue enhancement, happy customers, and accurate financial information are the key factors that keep business run smoothly.
Financial records can be a tough task to maintain if you are not experienced in keeping them accurately. The biggest question springing to your mind might be who to get help from. Do you really need professional accountants and bookkeepers? Let’s see how these two experts work together and how a professional bookkeeper can keep your business go smooth.
Accountants and bookkeepers perform different responsibilities. The accountant mainly manages the preparation and deposition of statutory returns, give advice on legal business structures, and also provide accurate general and financial business advice.
Bookkeepers, on the other hand, manage a lot of different duties. As part of the business operational life, bookkeepers mainly focus on recording and reporting financial transactions. Other ranges of duties bookkeepers perform include: introducing appropriate accounting software to the businesses; create efficiencies by implementing inventory control processes and document management; capturing daily transactions; and moreover, develop, maintain and review the business processes.
Working of Bookkeepers
Bookkeepers make your business run smoothly by…
Keeping Counts of Your Daily Transactions – Bookkeepers maintain records of your day-to-day transactions. Accounting software that can automatically manage the daily bank feeds is a great tool for bookkeepers to use. The bank transactions fed into your automated accounting software helps them monitor your cash flow in the easiest way.
Providing Invoices and Keeping up the Accounts Receivable Ledger – Bookkeepers prepare and send invoices to the clients. They also keep up the accounts receivable ledger and late payments.
Keeping an eye on the accounting ledger – To a certain limit, bookkeepers usually handle the payments in lieu of your business. This payment includes expenses, petty cash, and supplier invoices.
Also Read: A Short History of Forensic Accounting
Maintaining the Cash Flow – Your Company should never run out of the daily cash flow. This is one of those important tasks bookkeepers maintain for your business. They keep thorough watch on your income and expenses to do this task. When required they can also take suitable actions or offer you some advice.
Looking after Account Books – Bookkeeper makes sure that your accounts books are up-to-date for the accountants. Now it’s the accountant’s duty to use their abilities and knowledge and carry out the company’s tax returns.
Bookkeeper’s daily efforts help accountants to concentrate on your company’s financial operations. You can say that without having bookkeepers, your accountants will not be able to complete their portion of the tasks.
Cooperative Efforts of Bookkeepers and Accountants
You will need both, bookkeepers and accountants, to ensure a smoothly operative business. Let’s identify the shade of difference they both have in their tasks. Here’s what they can manage.
Business Set Up – Hiring an accountant is the first thing you will need to do when setting up your business. An expert accountant will help you build the best business plan and will set up a suitable structure for your business.
Accounting Software – Not only an accountant but also a bookkeeper will help you to get the best accounting software. This software will be helpful for you, your employees, and also your bookkeeper.
Bookkeeping Basic – After getting the accounting software, the prime focus of your bookkeeper will be to maintain your business accounts and keep it up-to-date on a daily basis.
Accounts Cooperation – Your accountant and bookkeeper may use several sources to reconcile with each other. They can work remotely or may meet in person! The best way of getting them to work together is by providing them the shared access of cloud accounting software. Whatever way utilized, the accountant will maintain the accounting figures whereas the bookkeeper will clarify the unclear numbers and results.
Prompt Reporting – Your accountant will report you the clear picture of your company’s financial health. A bookkeeper can also provide you the same but maybe in a less formal way. The reports you may get from your bookkeeper are known as management accounts. This report will help you check where your business has reached and is going on a weekly basis.
Strategy Implementation – Having up-to-date figures in hand, your accountant will provide you the best advice for planning expansion and investments. The accountant will help you figure out if your company is affordable to move into the new deals and what other financial strategies are right for your further success.
Legal Proceedings – Your accountant will prepare your company’s financial reports on the basis of the information provided by your bookkeeper. This report will take account of the income and expense, net profit, liabilities, assets, and tax. The accountant, at the year-end, will file your tax return and moreover will arrange the tax payments you will need to make.
This is how an accountant and a bookkeeper share their workload. An accountant prepares and examines your financial records, whereas the bookkeeper will provide you the important financial data.
You can be your own bookkeeper until you are capable of hiring or outsourcing someone to manage the task. The bigger your company grows the faster you will be loaded with extensive tasks. After a certain reach, it makes sense to hire a professional bookkeeper for your company’s betterment. Professional bookkeepers can help you in many ways.
They can help you…..
Focus on your business strategy
Proper bookkeeping means maintaining the track of financial details and recording them in the accounting software. Working with numbers can make things hard to walk through. Issues may occur if you don’t own the intense knowledge about bookkeeping, or you are unable to concentrate in a proper way due to other essential tasks. So, the best option in any such situation is to get professional help.
Trim down your accounting costs
Like an accountant, a bookkeeper can also manage your day-to-day financial transactions and monthly payroll. So, having a bookkeeper can also save a lot of accounting costs.
Keeps an eye on your cash flow
Managing cash flow accurately is a necessity to ensure you never run out of money. To do this task accurately you need to hire someone who can make sure your resources keeps flowing. And, a bookkeeper is the one who can do this in a proper way.
Provide prompt information and advice
Hiring an accountant is necessary to get monthly business reports. But a bookkeeper is required to get financial information as quickly as you need them; even in the mid of the month. No need to wait for an accountant’s response.
Supervise your financial data
With the help of online accounting software, your bookkeeper can provide you the same set of records an accountant can do. Coordinating with your accountant the bookkeeper can give you the best conclusion to help your business grow more and more.
In summary, bookkeeping is very important for any business; big or small. Whether you outsource or hire bookkeeping services Etobicoke, without an expert help your accounts will never be accurate. Without a bookkeeper, it will be hard for an accountant to get a clear picture of your finances. It’s your legal duty to get your accounts recorded and prepare your tax reports in a proper way. A professional bookkeeper is the one who can help you do all this.