To continue our series of popular services, we will look at the service of bookkeeping, what it is and how it can benefit your business.
What is Bookkeeping?
You may be starting a business or already running a company but not fully understand what bookkeeping is. Bookkeeping is an essential business functions and in essence, is the process of keeping a formal, up-to-date record of all financial transactions within a business. These transactions include purchases, expenses, sales, etc relating to your company.
How will bookkeeping benefit my business?
By making use of a bookkeeper, you are ensuring that you have accurate records for every part of your business. These records will enable you to monitor cash flow and better keep track of profits and losses.
Does a bookkeeper do the same job as an accountant?
There is a common misconception that bookkeepers and accountants do the same job. While accountants often offer bookkeeping services and bookkeepers often delve into accounting, it is important to remember the distinction. Bookkeepers are in charge of maintaining the physical records of your business. These records are then used by an accountant to generate financial reports, offer guidance on how to grow your business and much more.
Even if you are not making use of an accountant, as a business owner, it is vital to see the value of these records to clearly understand the health of your business.
Finding a bookkeeper?
Now that you have learnt the benefits of bookkeeping, you should find a suitable, experienced and qualified bookkeeper to help maintain your financial records. You can either search for an independent bookkeeper or look for a company offering bookkeeping services such as an accounting firm. By selecting an accounting firm you will be offered the benefit of bookkeeping services as well as business guidance and advice.
When selecting a bookkeeper or bookkeeping business, the following points may be helpful:
- Decide if you want someone in your area or if you are happy for a company to handle your financials remotely ( This depends if you prefer face to face meetings or would rather communicate telephonically / electronically if possible)
- Look for a company or individual that uses the Pastel Accounting Software System
- Check to see how often they will provide a review of your financials
- Ask exactly what they will process, usually you can expect a bookkeeper to handle your bank reconciliations, debtors and creditors invoicing, petty cash book, journals, debtor’s statements and creditor’s reconciliations.
By making use of a bookkeeper you are not only maintaining solid financial records but also giving you, the business owner as well as your accountant, the info needed to make good business decisions to ensure the success of your company.
Dirmeik consulting offers bookkeeping and accounting services at competitive rates. Please contact Brett on 021 421 4444 and find out how we can assist you.