Keeping your business finances organized can feel overwhelming. You might be wondering what a bookkeeper does and how they can help your business. This post will explain what to expect when you hire a bookkeeper and the value they can bring to your company.

What Does a Bookkeeper Do?

Think of a bookkeeper as the guardian of your business’s financial health. They record your income and expenses on a daily and monthly basis, ensuring everything is categorized correctly. This accurate data is crucial for tasks like tax filing and making strategic business decisions. Bookkeepers also reconcile your bank statements, which means they double-check your records to ensure they match your bank’s data.

The Onboarding Process and Your First Reports

When you start working with a bookkeeper, they’ll get acquainted with your business. This might involve discussing how you receive payments and setting up access to your bank accounts and payment processors. With your permission, they’ll download your statements and meticulously categorize your income and expenses.

After this initial setup, you’ll receive your first reports, typically a profit and loss statement and a balance sheet. These reports will be customized to your business and include a clear explanation to help you understand your financial performance.

Understanding Your Reports

Your bookkeeper won’t just hand you reports and walk away. They’ll take the time to explain what the numbers mean. This includes identifying your highest income sources, biggest expenses, and overall profit. They’ll also be happy to answer any questions you have about the reports and your business’s financial health.

The Monthly Bookkeeping Cycle

Throughout the month, your bookkeeper will keep your finances organized by categorizing your transactions. At the month’s end, they might reach out to clarify any questions they have about specific transactions. Once everything is categorized and reconciled, you’ll receive your updated reports, keeping you informed about your business’s financial standing.

The Value of a Bookkeeper

Hiring a bookkeeper can be a game-changer for your business. Here are some key benefits:

• Save Time and Reduce Stress: Bookkeepers handle the day-to-day tasks of managing your finances, freeing you up to focus on running your business.
• Make Strategic Decisions: With accurate and organized financial data, you can make informed choices about your business’s future.
• Streamlined Tax Filing: Bookkeepers ensure your records are accurate throughout the year, making tax filing a breeze for you and your tax preparer.

Working with a Bookkeeper’s Team

The bookkeeper you hire might have a team to help manage your account. You’ll likely be assigned a point person who will handle most communication with you. However, the head bookkeeper will always be available to answer any questions or address any concerns you may have.

By working with a bookkeeper, you can gain peace of mind knowing your finances are in good hands. This allows you to focus on what you do best: growing your business.