Some Great ways in which Bookkeeping services can help Small Businesses
A well-established bookkeeping service can offer a wide range of high quality services including accounting, preparing balance sheets, maintaining general ledger, and many more. A trained bookkeeper can help keep track of your money by managing the entire business from sales to collections. This lets you focus on the core areas of your small business and helps it grow rapidly.
Monitoring Sales and generating reports:
Bookkeeping comprises several specific areas that help small businesses grow. The primary focus is on Accounts Receivables (ARs) and Accounts Payable (AP) and also keenly tracking the cash flows, whether it is inwards or outwards. Such keen monitoring can help with cash flow management, have a check on receivables, and manage your bills effectively leading to a marked reduction in bad and doubtful debts.
The Accounts Receivable (AR) things that an experienced bookkeeper would focus on include:
- Invoicing customers/clients
- Taking charge of Accounts Receivables and processing them on time
- Regularly posting collections and payments, and keeping an eye on bounced cheques
- Reconciliation and posting sales to the appropriate general ledger
- Keeping track of overdue receivables and speeding up the collection process
- Keep an eye on your balance sheet and ensure it remains healthy
Bills and Payments:
The next important thing a bookkeeper can help with for a small business would be in the area of billing and payments, which need close monitoring. Watching small businesses’ bills with a hawk’s eye, which helps in keeping vendor rates down by stressing on timely payments and helps save quite a lot of money for a small business. This also helps in earning a healthy credit rating, which is indeed a manor plus point for a small business. Close monitoring of accounts helps a small business balance its payments and optimize cash flow.
Other areas of focus:
- Closely monitor and ensure timely payment of vendor bills
- Ensure various clients receive their invoices on time
- Help in reconciling payments with the respective bank accounts
- Keeping track of overdue payment
The general ledger, in a way is responsible for laying a strong foundation for any small business. Constant monitoring ensures that mistakes do not creep in, and all entries are perfect, hence doing away with the need to fudge accounts due to missing entries.
An efficient bookkeeping service helps:
- In posting closing entries towards the month end
- In reconciliation of bank statements
- Accurately reporting financial statements during the year-ends
- In reconciling expenses with checkbooks and bank accounts
Moreover, a good bookkeeping service helps a small business save a lot of precious time and money. They help with maintaining and managing payroll services, taxation, auditing and other financial services. A good bookkeeper will help with budget planning which can help a small business achieve its business goals easily. Based on specific needs, a bookkeeping service provider like Infognana can be a great help for small businesses.
Maintaining the books of accounts properly is very important for small businesses as it reflects on the firm’s financial health and standing. Maintaining accounts accurately also helps in keeping a firm check on spiraling expenses and a close eye on cash flows coming in. In order to maintain books of accounts totally error-free one needs to hire the services of a professional bookkeeping service which employs trained experts who know the ins and outs of the trade, especially while working on the tax calculation and financial reports.