As business owners, our main focus is doing what we do best. Whether you’re a photographer, a coach, wedding planner, or web designer. Unless you’re in the trenches of finance, you may not be familiar with what a bookkeeper does and why it matters.
Let’s start with the difference between bookkeepers and accountants. I like to think of it as dealing with the details and dealing with the big picture. Bookkeepers are in the data and details of your finances. Accountants take those details to put together the big picture of your finances. When you can see the big picture, you can make wise business decisions.
But you need the data and details to assemble that big picture.
Every business owner does the same two things: makes money and spends money. Your bookkeeper keeps track of it all.
what is a bookkeeper?
A bookkeeper is in charge of the financial data for a company. This person records all financial transactions and makes sure the numbers are accurate.
If you’re not the numbers type, your bookkeeper is. They can tell you how much money you’ve made and how much money you’ve spent in the last month. And in the last year. And how that compares to the previous month or year.
what do bookkeepers actually do?
- Record income and expense transactions
- Reconcile bank accounts, credit cards, and liabilities
- Manage accounts receivable and accounts payable
- Manage receipts
- Collect and remit sales tax to the government
- Keep track of debt and record interest and principal payments
- Provide CPA with accurate information to prepare the tax return
- Process payroll
- Any other data entry tasks needed for your industry
why do you need a bookkeeper?
Are you currently doing everything above yourself?
If no, you should be. Did you just panic a little bit?
If yes, can you imagine what you could do with that extra time?
Where is your time best spent? Do you enjoy doing your books?
benefits of a bookkeeper:
- More time back in your day
- Pay less in taxes with accurate information
- Know exactly how your money is coming in
- Know exactly how you’re spending your money
- Detailed documentation to protect you in an audit
- Knowledge of the top 3 numbers in your business: revenue, gross profit, and net income
- Peace of mind
How would you feel if you didn’t have to worry about tax time because your bookkeeper has prepped the data?
Want to spend more time growing your business instead of maintaining it?
Hire a bookkeeper.
Check out my free bookkeeping checklist and get your books started on the right foot.