If you are considering employing a bookkeeper for your business, but aren’t really sure what they do and how they can help you, this is the article for you.
People often underestimate the importance of a bookkeeper and their ability to help your business run smoothly. Bookkeepers have the ability to assist with everything from trust accounting to accounts payable to reconciliations and so much more. They can save you a huge amount of time, as well as ensuring that your business accounts are up-to-date and current. So, what actually is a bookkeeper, and what can they help you with?
What is a bookkeeper?
A bookkeeper is someone who cares for the accounts of a business. This can include a range of things, from trust accounting to financial reporting. Their job is to provide accurate and up-to-date financial information, whilst remaining on top of all the relevant legislation and regulations.
What can bookkeepers assist with?
Bookkeepers can assist with a huge variety of tasks - the list goes on forever. Some of the major aspects that they can assist with are listed below, but this list is in no way exhaustive. If you are in need of further assistance, a bookkeeper can likely still assist you - give your local bookkeeper or Booksonsite a call, and we would be happy to discuss. A full list of all the bookkeeping services that Booksonsite offers can be found here.
Trust Accounting
One of the most important parts of a business is their trust accounting and, at times, it can be incredibly difficult to navigate; engaging a bookkeeper to assist with your trust accounting ensures that all your trust transactions are correct. Trust transactions include a trustee recording payment of money into a trust account, as well as a receipt of payment, into a trust ledger. Trust accounts must be current and up-to-date in line with various regulations, meaning that it must be maintained strictly and riguously, as you are dealing with funds on another’s behalf.
Trust account bookkeepers ensure trust accounts are kept exactly as required, offering you peace of mind in so many ways (and saving you time too).
Payroll and Superannuation
Bookkeepers can also take the stress out of payroll and superannuation - two aspects that can be difficult to manoeuvre for many businesses. They can assist with many aspects including:
- Process payroll and issue payslips to employees.
- Accrue Annual and Personal Leave Balances.
- Superannuation Reconciliation and Payments.
- Prepare Employee Payment Summaries.
- And much more.
Bank Reconciliations
When you engage a bookkeeper, you have a second set of eyes on cash flow and your bank accounts. This can offer a point of view that you never considered, as well as having someone to manage business reconciliations and the relevant reporting. Having someone else complete these tasks for you allows you to review your business, its expenses and how it is travelling in ample time, instead of rushing to complete tasks when needed.
Accounts Payable and Receivable
Bookkeepers can assist with both accounts payable and accounts receivable, allowing you to get a bigger and better picture of your suppliers, customers and the financial costs surrounding them. Whether you need to pay a supplier or a customer is overdue in their payment, a bookkeeper can provide you with all the information you need to run your business smoothly.
Accounts Payable
- Reconcile Supplier Statements.
- Coding and entry of Supplier Statements.
- Weekly and Monthly Creditors Reports of who you have paid and who is still outstanding.
- Payment Setup for you to approve securely and simply online.
Accounts Receivable
- Creating, coding and issuing invoices.
- Following up outstanding accounts via regular phone and email communication.
- Weekly and Monthly Debtor Reports to show you who has paid and who still owes money.
Financial Recording
When you complete your own books, you are also trying to run your business - you are busy and likely thinking of a range of different things (as we all know that doing your books isn’t always fun). When a bookkeeper completes your books, they are completing financial recording accurately, effectively, efficiently and properly. This allows for you to use your time focussing on other aspects of your business, and offers financial recording that is done right. A bookkeeper provides a wealth of information and knowledge, allowing any financial recording to be completed to the benefit of your business. And your reports will be accurate too!
Legal Compliance
Ensuring that your books are up-to-date and in accordance with all the relevant legislation and regulations can be exhausting and hard to follow, which is where a bookkeeper offers one of its biggest benefits. Bookkeepers remain aware of all the rules when it comes to looking after your books as part of their job, offering you peace of mind that your business finances are all in line with all requirements. This also saves you heaps of time - why go chasing information and reading hard-to-understand documents when your bookkeeper can guide you in the right direction?
Data Entry
Last, but certainly not least, your bookkeeper can accurately enter financial transactions into a system effectively and efficiently. They can work with the relevant software to ensure all amounts are allocated correctly, which results in accurate and useful reports at various times throughout the month. This also ensures that any reports actually reflect your current business position - which is exactly what you are looking for as a business owner.
Other bookkeeping services
Come other factors that a bookkeeper can assist with include:
- Inventory control.
- Preparation of BAS & IAS Statements.
- Fixed Asset Register management.
- Weekly and monthly P&L, Balance Sheet and Cashflow reports.
- Budget v Actual comparisons.
- Multi Currency - foreign exchange gain/loss calculations.
Why employ a bookkeeper?
Although you can do some of your bookwork yourself, there are a range of benefits to engaging a bookkeeper such as:
- Saving time, so you are able to focus on other aspects of your business.
- Ensure all relevant rules and regulations are being followed.
- Ensuring all relevant documents are completed and lodged on time.
- Providing advice regarding the management of your business books.
- And so much more!
An indepth look into doing bookkeeping yourself vs employing a bookkeeper can be found here, as well as the benefits of outsourcing your bookkeeping here.
If you would like further information or guidance in relation to employing a bookkeeper, give Booksonsite a call today!
