Merriam-Webster dictionary refers to a bookkeeper as a person who records the accounts or transactions of a business.

While the simple definition above is true, a knowledgeable bookkeeper with significant business experience can assist business owners in major as well as day to day financial decisions which could influence a companies’ future in real and positive ways.

Bookkeepers are responsible for recording and reconciling the financial transactions which flow in and out of a business. They also track and pay bills on behalf of the company. A bookkeeper will prepare client invoices, deposit incoming payments, and act as a collections department for difficult clients.  Payroll is a significant role a bookkeeper is responsible for and makes them a major part of any business. Bookkeepers are responsible for ensuring important regulatory payments are made such as union dues, franchise tax payments, and professional association dues.  A bookkeeper will work as a liaison between you and your companies accountant/CPA. They will prepare the reports necessary for the tax preparer to complete the annual tax filing quickly, accurately, and efficiently.

Speaking of reports, your bookkeeper should be able to prepare and discuss important financial reports such as a companies annual budgets, cash flow report and an up to date profit and loss report. During these discussions, an experienced bookkeeper can provide advice on ways a company can meet its goals.

Different business types also require different tasks which are important for a bookkeeper to maintain such as job costing and inventory valuations.

We have heard time and again from struggling businesses that an inexperienced administrative individual was hired to fulfill the role of a bookkeeper which is a common problem. Unfortunately, this path can prove both expensive and frustrating down the line. Fines for missing payment deadlines, disgruntled employees dealing with payroll errors, and expensive trips to your CPA firm to “clean up” your books are just a few of the ways where an unskilled hire in this role can be disastrous.

Here at Sheffield Bookkeeping we pride ourselves on our extensive business management and bookkeeping background which can provide business owners with a skilled team member at a fraction of the price of a traditional employee. If you are interested in what a skilled bookkeeper can do for you contact us today!

Written by Carol Sheffield