When a new business is incorporated, a melbourne bookkeeper is among the first hires to join the organization. They play a crucial role in helping the business run smoothly and aiding the growth of the business.

If you are starting a venture, you may have been told to hire a bookkeeper for your business. But what does a bookkeeper really do? If this question has been on your mind, this post is for you. We got in touch with Adam Valdez CPA, one of the best San Antonio CPA firms to find out more about the role of bookkeepers. And here’s everything you need to know before hiring one for your business.

What Is A Bookkeeper?

Bookkeeping is an entry-level position in the finance department. Bookkeepers are responsible for the financial records of a business. 

This includes recording expenses, making invoices, recording payments received or made against invoices, updating various ledger accounts, managing inventory levels, and passing journal entries. They maintain accurate records of all transactions, prepare financial statements, and make sure that taxes are paid on time. 

 Bookkeepers are an important part of any business, and they play a vital role in keeping the financial affairs of a company in order. As a business owner, you need financial data to set budgets, measure performance, identify trends and predict future outcomes.

Many small businesses choose to do these tasks to save money. But a single transaction recorded wrongly can reflect errors in all forecasts and may even attract penalties by authorities. So it is important to hire a bookkeeper to ensure that the books are in compliance with the Generally Accepted Accounting Principles (GAAP).

What Are The Education Requirements For Bookkeepers?

There is no set requirement on the educational requirement to become a bookkeeper. Small business owners and solopreneurs often do it themselves without any formal education in the accounting field.

While anyone with a general understanding of accounting principles can be an entry-level bookkeeper, most bookkeepers have at least a bachelor’s degree. Even qualified accountants like CPAs(Certified Public Accountants) provide bookkeeping services as they have undergone a special education to obtain the CPA license. 

What Type Of Businesses Need Bookkeepers?

If your small business owner you probably think you can manage without a bookkeeper. But all businesses need a bookkeeper irrespective of their size and type. Whether it is a family-run corner store or a multinational business, whether the business offers products or services, everyone organization needs a bookkeeper to stay on top of its finances and legal obligations.

Even non-profits require a bookkeeper to keep track of financial records. Large-scale businesses usually hire a full-time bookkeeper as they have a large volume of transactions to be recorded every day. But small businesses with limited funds and requirements outsource bookkeeping to freelancers or CPA firms.

As a business owner, outsourcing your bookkeeping to a CPA firm is an ideal choice as they provide a complete solution to the financial needs of your business.

What Services Can A Good Bookkeeper Provide?

Bookkeepers are in charge of the entire data entry system. But here are a few key services that they candle for your business.

• Data entry: They record financial transactions and balance the ledgers. 
• Bank reconciliation: They will check the books against bank statements and other source documents to confirm accuracy.
• Monthly reports: They summarize the business’s financial position by creating monthly budgets, sales reports, cash flow, etc
• Accounts receivable: They create and send invoices, and follow up with customers to get them paid. 
• Accounts payable: Making sure invoices from suppliers are accurate and paid in a timely manner. 
• Payroll: They can calculate wages and salaries, tax deductions, and disburse payments to employees on time.
• Tax filing: They prepare tax returns and can even file them on your behalf.
• End of year reporting: they, assist in preparing balance sheet and P&L statements at the end of the financial year to judge the performance of the business.
• Forecasting: Creating budgets and forecasts, and advising on how to improve the business.

How To Find A Book Keeper?

Bookkeepers are great support for any thriving small business, non-profit or corporate organization. They can save you a lot of time and help grow your business at a faster rate by allowing you to focus on productive areas of business. So it is essential to choose the right person for the job.

 If your run or small-to-medium business, you can find a CPA firm near you for it. Adam Valdez CPA provides bookkeeping services in San Antonio area. They are experts in accounting and offer services like tax planning, payroll procession, estate planning, business strategy, etc.

So if you are looking for a trustworthy bookkeeper in San Antonio, do visit Adam Valdez’s website or call their office to schedule a consultation. They offer custom packages based on the needs of their client and will help scale your business with financial services.

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