How can bookkeeping services help my small business?
Published on : Jul 05 2011
Depending on your needs, a bookkeeping service may be the perfect fit for your small business. A bookkeeper can provide you with a high level of finance and accounting services including assistance tracking money through the entire cycle from sales to collections. With a skilled bookkeeper at your side, you can stop worrying about where your money is going and focus on building your small business.
Sales Monitoring and Reporting
Inside the bookkeeping duties lie several areas specific to small business growth. The first area of importance is accounts receivable and payable, or where your cash flows into and out of the business. With solid tracking you can improve cash flow, lower receivables, manage payment times and reduce bad debt accounts.
Accounts receivable items a bookkeeper can help you with:
· Customer invoicing
· Processing accounts receivables
· Posting payments and collections (including monitor bounced checks)
· Reconciling and posting sales to general ledger
· Monitoring and tracking aging receivables
Bills and Payables
The second most important area of your small business finances is keeping track of all your billing and payables. Keeping control of your business' bills and being able to take advantage of reduced vendor rates for on time payments can save your business money and improve your credit rating. Timely account management enables you to better balance paying bills on time and optimizing your cash flow.
Other payables areas a bookkeeper can assist with:
· Record and track and pay vendor bills
· Submit invoices to clients
· Reconcile payables with bank accounts
· Posting bills into the general ledger, including credit memo adjustments
· Monitor aging payables
The general ledger is the keystone to a great small business foundation. Accurate tracking ensures that all details are correct and there are no surprises or missing entries.
A bookkeeper can:
· Post month-end closing entries
· Reconcile bank and credit card statements
· Year-end financial statements reporting
· Reconcile expenses with credit card accounts, checkbooks and bank accounts
Having a bookkeeper will provide you and your business with valuable data and information and more importantly, arm your small business accountant or tax preparer with the most accurate information possible to help guide your business to even greater profitability.
PASBA member accountants bring the collective resources of a nationwide network of Certified Public Accountants, Public Accountants, Enrolled Agents and other practitioners available to answer your tax and financial questions and streamline your business accounting, bookkeeping, and payroll operations. To find a trusted accountant in your area, visit www.SmallBizAccountants.com.
Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230.
Copyright Information 2011 Professional Association of Small Business Accountants