Bookkeepers are always taking the pulse of a business. More than preparing the books for the tax season, there are plenty of tasks that require their expertise. It goes from providing accurate and up-to-date financial information to processing payroll and stocktaking.
In this article, we break down 5 important tasks where you need your bookkeeper’s expertise. Some of these consume time you can allocate instead of other business operations.
Organising accounts include consistent coding of purchases and sales, entering the correct GST amount, and allocating business transactions properly.
More than the skills like attention to detail and accuracy, this requires knowledge and understanding of the ATO obligations.
A couple of things to work with your bookkeeper when organising accounts include:
- Categorising entries based on urgency (eg. Schedule of payments to suppliers)
- Frequency of preparing your cash flow to determine how often you should focus on collections
- Management of staff payroll
Reconciliation is a process of cross-referencing bank statements with your books. It ensures that your financial information accurately reflects your business standing.
Bookkeepers cross-check books against bank statements to:
- amend data entry mistakes
- update accounts book
- identify any missing transactions
- check if there are omissions like refunds or interest income
- Detect any suspicious transactions
A good bookkeeper allocates the transaction in the correct general ledger account and tax rate. A bookkeeper creates the new GL in the chart of accounts if there is no general ledger for a specific transaction. This is essential for the P&L statement when tracking the expenses and income correctly.
Invoicing customers and making payments are two tasks that require close monitoring – especially when your business is growing fast. Doing these by yourself takes much time away from your core business activities.
Your bookkeeper is responsible for making sure customer payments are received on time. Similarly, a bookkeeper arranges payments such as petty cash and supplier invoices on your business’s behalf.
Cash flow monitoring
Cash flow is the lifeblood of your business. Poor cash flow can lead to:
- Burning up resources without proper justification
- Disenfranchising stakeholders
- Suppliers putting you on credit hold
- Banks withdrawing your credit lines
Depending on your business requirements, your bookkeeper must update records regularly so you can accurately prepare a cash flow forecast.
Keeping a good cash flow gives you the advantage of a settlement discount – if suppliers are paid early – or maintaining credit terms.
Working closely with an accountant
Accountants rely on bookkeepers for the daily data and all records they need for financial planning and strategies. This means all records must provide them with accurate and reliable information on the financial state of the business.
With the volume of transactions occurring on a monthly basis, there is too much to take in as a business owner. It is challenging to do things on your own when your business is growing.
Bookkeepers offer value to keeping a healthy business. It is worth partnering with a qualified bookkeeper who looks after critical business areas. When looking for a qualified bookkeeper, make sure that they have:
- Organisation skills
- Meticulous attention to details
- A clear and transparent process
- Great communication skills
- Knowledge in technology
- Analytical way of solving issues
Do you need help with bookkeeping?
Call us today for a free discussion with Fabiana Silva, a registered Bookkeeper and BAS agent.
Read more about Fabiana Silva and Focus Bookkeeping.