Running a business requires juggling various responsibilities, from managing operations and serving customers to driving growth. In the midst of these demands, it’s easy for financial management to fall by the wayside. But, neglecting proper bookkeeping can have significant consequences for your business’ financial health. An experienced bookkeeper can lighten the burden and help get your business finances back on track.
If you’re wondering if it’s time to hire a bookkeeper, here’s a few important questions to ask yourself first.
What is a bookkeeper?
A bookkeeper is a skilled financial professional who assumes the responsibilities of maintaining accurate and current financial records for a business. Bookkeeping services play a pivotal role in managing the day-to-day financial activity, ensuring that all income and expenses are recorded correctly. With accurate bookkeeping you’ll have a better picture of what’s happening with your money and it will be easier to meet GST/HST, income tax and other obligations.
What does a bookkeeper do?
Bookkeepers handle a range of tasks that maintain organized and reliable financial records. Bookkeeping services often include:
Recording financial transactions
Bookkeepers diligently record income, expenses, and other financial transactions in the appropriate accounting software. This ensures accurate and reliable data for financial analysis and reporting.
Reconciling bank statements
They reconcile bank statements with your company’s financial records to identify any discrepancies and ensure that all transactions are accounted for.
Managing accounts receivable & payable
Bookkeepers oversee invoicing, track payments from customers, manage accounts payable, and handle vendor payments. They help maintain a healthy cash flow by ensuring timely payments and proper debt management.
Generating financial reports
They prepare financial reports such as profit and loss statements, balance sheets, and cash flow statements. These reports provide insights into your business’s financial performance and aid decision-making. to find out more about what we offer small businesses like yours.
Who does a bookkeeper work with?
Bookkeepers collaborate with various stakeholders within and outside the business. Some key relationships include:
They work closely with business owners to understand their financial goals and provide valuable insights into your company’s financial health.
Bookkeepers focus on day-to-day financial transactions, providing the foundation reports that accountants use to analyze and interpret financial data.
During tax season, bookkeepers support tax professionals by organizing financial records and providing accurate financial data for tax preparation.
What’s the difference between a bookkeeper and an accountant?
While bookkeepers and accountants share similar goals of maintaining accurate financial records, their roles and responsibilities differ. Bookkeeping services focus on daily financial transactions, ensuring accurate data entry and record keeping. On the other hand, an accountant analyzes the financial data provided by the bookkeeper, interprets it, and provides strategic advice on tax planning and financial forecasting.
Is a fractional bookkeeper the solution?
Small businesses with limited financial resources often find it challenging to hire a full-time, in-house bookkeeper. Fractional bookkeeping services provide you with access to expertise without the cost of a full time employee.
An online bookkeeping service like Ruby Business Solutions provides you with a great solution. We offer you flexibility, expertise and the convenience of being able to work with your bookkeeper online. This allows you to focus on your core business activities while ensuring your financial records are accurately maintained.
What a bookkeeper can do for your small business
Some of the key benefits of hiring a bookkeeper are:
By delegating bookkeeping tasks to a professional, you can save valuable time and focus on growing your business. This allows you to concentrate on revenue-generating activities and strategic decision-making.
Bookkeepers have expertise in maintaining accurate financial records. By entrusting this responsibility to a skilled professional, you reduce the errors that come with trying to do your own books. You’re also more likely to stay compliant with tax authorities.
A bookkeeper can provide valuable insights into your business’s financial health. They can generate reports, identify trends, and highlight areas of concern or opportunity. This information empowers you to make informed decisions, set realistic financial goals, and allocate resources effectively.
Improved cash flow management
Too many small businesses struggle with a lack of cash. A bookkeeper can track incoming and outgoing funds, monitor accounts receivable and payable, and implement strategies to optimize cash flow. By ensuring timely payments and managing expenses efficiently, they help maintain a healthy cash flow position.
Compliance & financial reporting
Bookkeepers ensure that your financial records are accurate, organized, and compliant with relevant regulations. They can assist with tax preparation, ensuring that your business meets its tax obligations and avoids penalties. Additionally, they prepare financial reports that provide a clear overview of your business’s financial position, making it easier to secure loans, attract investors, or comply with audit requirements.
Scalability & growth
As your business grows, your financial management needs will evolve. A bookkeeper can adapt to your changing requirements, providing scalable services to support your expansion. They can help implement efficient financial systems, track key performance indicators, and provide insights that drive growth strategies.
Can a bookkeeper help get my books up to date?
Yes, falling behind on your bookkeeping is not uncommon. Many business owners face this same challenge. At Ruby Business Solutions we offer bookkeeping clean up services that will get you up to date. We’ll also implement systems that simplify and streamline your record keeping going forward.
Can a bookkeeper assist with payroll?
Yes. At Ruby Business Solutions, we specialize in providing comprehensive payroll services to businesses throughout Canada.
Our online payroll services are conveniently delivered to you using the best cloud accounting software and apps. We can assist you with various aspects of employee pay, benefits, deductions, taxes, and record-keeping.
Our services encompass essential activities including source deductions, Record of Employment (ROE) preparation, and T4 generation. Additionally, we offer the convenience of filing and paying your workers’ compensation premiums on your behalf.
Does your business need a bookkeeper?
Is it time for you to bring in a professional bookkeeper who can help you with your business finances?
Contact our team today about our bookkeeping packages. We look forward to helping you run a more streamlined business.