As small to medium business (SMB) owners grow their company, it becomes increasingly difficult to manage all aspects of the business and make time to meet the needs of clients. With several daily transactions made in a company’s bank account or credit card, it is even more challenging to keep track of how to categorize each expense or deposit. The role of a bookkeeper is to help alleviate the stress of these details, double-check the records with reconciliation and then prepare statements that provide SMB owners with insights about the financial health of their organization.
As a bookkeeper works with the company’s bank accounts, they can take time to carefully record the amount and date each transaction takes place. They know how statements should be categorized and help maintain the accuracy of statements without issue. Furthermore, accuracy is verified with a bank reconciliation, where the data in the company’s books is checked against the bank statement for a particular month or accounting period. If no discrepancies are found, then the data is considered good and ready to represent the company’s financial statements. On the other hand, when discrepancies occur, this gives the bookkeeper a chance to review the work that is done before it is sent to the client in a report. The bookkeeper can take time to do this because they are experienced in these services and they aren’t responsible for managing other aspects of the business, such as dealing with clients and making new sales.
The reports that are produced by a bookkeeper help SMB owners make well-informed decisions before they embark on new ventures. For example, if SMB owners decided they would like to buy new equipment or open a new location, they could check their cash flow situation and see if the new growth would be both profitable and sustainable. Rather than hoping for the best, they can take more time to plan and re-evaluate their strategies when necessary. This helps the SMB save money and time, refraining from taking on strenuous costs and the inability to produce enough to meet the new demand. With the aid of these statements from the bookkeeper’s work, SMB owners are more able to adapt to best help their company whatever stage it may be at.
For all small business owners who need an extra hand, let the team at JTC CPAs help meet the needs of the business. From small spreadsheets to independent Quickbooks setup and training services, we have all they need to succeed. Feel free to reach out and set up a free consultation today!