As a small business owner, it is important that you have both bookkeepers and accountants that are working with you to help ensure your success. Both of these roles are essential in staying on top of your finances. However, these two roles are not the same. They both have different responsibilities that are beneficial for any small business. Propel Your Accounting is here to talk about the different ways that you need both accountants and bookkeepers to help you run your business.
What are the Duties of a Bookkeeper
There are several ways that a bookkeeper can help you achieve financial success as a business owner:
– Prepares Financial Statements: You can’t know where you stand financially without some important financial statements including balance sheets, profit and loss statements, and cash flow statements.
– Records Transactions: All transactions that happen in your business should be recorded. They will be recorded into the general ledger. This can show you the credits, debits, and balances for your accounts. It gives business owners a lot of information about where they stand financially.
– Chart of Accounts: It is important that there aren’t too few or too many accounts for any business. Bookkeepers will make sure that this gets set up correctly so that there aren’t problems that snowball out of control down the road.
– Reconciling Bank Statements: Once a month, your bookkeeper will make sure that your transactions are matching the bank statements that you get.
– Accounts Receivable & Payable: Managing accounts receivable includes sending out invoices, gathering payments, and tracking down those with overdue payments. The accounts payable is different as this entails making sure that vendors are getting paid.
– Payroll: Another key role for bookkeepers is payroll. Having someone to process payroll is incredibly helpful.
What are the Responsibilities of Accountants
An accountant is an essential part of owning and running a successful business. Here is how they work for you:
– Prepare & File Tax Returns: During tax season, the role of accountants is vital. They will help you gather all the necessary documents that can help to ensure you aren’t paying more taxes that you should be. They will do everything in their power to lower your taxable income. They will also make sure that everything is filed correctly to help you avoid getting audited.
– Financial Planning & Advice: When you are deciding your business structure, accountants can help you make the right choices and get your business up and going. They can be trusted financial advisors when you are getting started or working to restructure.
– Help with Loans: Loans are an essential part of business as well. Your accountant can play a big role as they work with lenders to get them all the information they need to iron out the details of the loan.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are looking for both accounting and bookkeeping services, you can turn to Propel Your Accounting to help you attain success in your small business. Call us today!
