What do bookkeepers do for your business?

In Canada, certain entities are required to prepare annual financial reports as per the International Financial Reporting Standards (IFRS). The IFRS is a guide to recording and reporting all the financial transactions occurring in a company throughout the year truly and fairly; and the first step to go about it is bookkeeping.

Now, not every entrepreneur is proficient at accounting; and having a comprehensive understanding of the IFRS for a layman is not possible. This is where a bookkeeper comes in. A bookkeeper has a firm grasp on all reporting standards. They ensure all business transactions are recorded in the books of accounts, and the financial statements are prepared as per the IFRS.

Here is how an expert bookkeeper can cater to your business’s various accounting and reporting needs:

Record journal entries:

Your bookkeeper will record the journal entries in the books of accounts daily, weekly, or monthly based on the frequency of transactions. Typically, their services will accompany the best accounting software that will back up your data on a regular basis to avoid any loss of data.

Handle accounts receivable and accounts payable:

The bookkeeper will create and issue invoices for you, and keep track of all the accounts receivables owed to you. They will send regular follow-ups to remind the customers until the payment has been received.

Similarly, your bookkeeper will track your accounts payable, make payments to your vendors on time, and capitalize on any cash discounts being offered by your supplier.

Reconcile bank statements:

At the end of every month, your bookkeeper will reconcile your financial data on the accounting software with the data on bank statements, credit card statements, and any other financial account statements to make sure all your data is up-to-date.

Process payroll:

Given how complicated payroll can get, your bookkeeper can help you handle a part of it. They may help by issuing paychecks for you, managing the timesheet, assisting in filing taxes and employment forms, etc.

Assist with sales tax (GST/PST/HST/RST):

Your bookkeeping service provider will be responsible for collecting and remitting sales tax, as well as filing the tax forms on time. This way, you won't miss any deadlines, file and pay accurate taxes, and avoid penalties and fees.

Prepare financial statements:

Your bookkeeper may also prepare the three financial statements monthly, quarterly, and annually. You will be provided with accurate numbers on the income statement, balance sheet, and cash flow statement; and have a crystal clear picture of where your business stands as compared to the main budget prepared earlier.

Provide reports:

Another service your bookkeeper may provide is a brief analysis of your financial performance for the year. They may also perform variance analysis, provide analysis reports, and suggest ways of eliminating inefficiencies found.

Conclusion:

Your bookkeeper can add value to your business in several ways, especially if your business is a start-up. Being an entrepreneur is exhausting and requires immense time and effort. Having a helping hand to manage your cash and finances can be the key to success for your business in the long run.