As a business owner, you’ve probably been told countless times that you need a bookkeeper. And that’s true, you will definitely benefit from hiring one.
But why? What does a bookkeeper actually do that is so beneficial for business owners?
When you learn about these three primary functions of a bookkeeper, you’ll regret not hiring one sooner!
1 . They categorize transactions
This is one of the most well-known tasks a bookkeeper performs. Simply put, bookkeepers retrieve, categorize, and input all transactions into an accounting software. The data collected is often used to create financial reports that can act as a barometer of the profitability of a business. This aids business owners during the decision-making process, as they are better able to manage and manipulate their cash flow.
2. They keep you up-to-date with tax deadlines and tax laws
How many times have you approached a tax deadline and realized you had little to none of your tax documents organized? If that sounds like you, you’re not alone. That’s the case with most business owners who don’t work with a bookkeeper.
Bookkeepers record and reconcile transactions on a monthly basis to ensure that all necessary reports are ready come tax time. Additionally if they have tax knowledge, they are likely aware of deadlines and tax laws specific to your business entity type that can save you in penalties, interest, and audits in the long run.
3. They identify discrepancies
Business owners are often too busy to analyze every financial transaction, especially as their business grows. But because bookkeepers have access to all transactions that flow in and out of business accounts, they can easily recognize when money is unaccounted for or when there is fraudulent activity. Even the smallest imbalance can alert bookkeepers to big issues, such as phishing scams, identity theft, embezzlement, and the like.
So, are you ready to hire a bookkeeper?
If you’d like to learn how to hire the right bookkeeper, click here. We’re also offering a free consultation to businesses interested in our bookkeeping services. To schedule your appointment, email firstname.lastname@example.org or call 203.698.7700.