Are you a business owner seeking to learn more about what a bookkeeper does?
There are more than 1.73 million bookkeepers in the United States but a lot of people aren’t familiar with the important functions they have in the operation of a business.
A good bookkeeper will help you stay on top of your financial records while also ensuring that you have all the information you need to make informed business decisions both short- and long-term.
Read on to learn the answer to the question, ‘What does a bookkeeper do?’
Responsible for Bills and Invoices
Regardless of the industry you work in, there will undoubtedly be bills and invoices that must be handled regularly. Even if you operate a nonprofit, bookkeeping for nonprofits will ensure you are doing the right things with your financial reporting under state and federal law.
Paying your company’s bills on time can be the difference between keeping the lights on or closing the doors. It can also have a big impact on your creditworthiness as a business. This can help open doors for you with obtaining credit for new ventures or missing out on the opportunity.
A bookkeeper will keep your bills and invoices in an organized manner and ensure they are paid on time!
Reconcile Bank Accounts
Depending on the size of your business, you may have many different bank accounts at different institutions.
You must reconcile your bank statements against receipts and checks. This will allow you to be sure that there are the proper inflow and outflow of cash in your business. A bookkeeper will spend time looking over bank statements and accounts to be sure that statements are accurate.
If you choose to do this on your own, you may overlook important financials that will have important consequences for you later.
Prepare Financial Statements
Financial statements are some of the most important financial documents in a business.
This goes for whether you are a small business or one that’s traded on the New York Stock Exchange. Financial statements include your statement of cash flows and income statements.
A bookkeeper has the training to prepare these documents and ensure they are accurate. This will give you a better sense of your company’s financial health now and into the future. It will also help you see areas of your business that must improve.
Wrapping Up: What Does a Bookkeeper Do?
When asking, ‘What does a bookkeeper do?‘, the answer is that they do many different things in a business each day.
Before you choose a bookkeeper for your company, spend time deciding what are the most important attributes to look for in the person you hire. By thinking about where your business is now and where you want to take it, this will help you find the right person for the job.
Are you interested in learning other helpful information about operating a business?
Check out our blog posts for other tips and tricks to help you take your company to the next level!