Whether you’re a lawyer, restaurant owner, or tech founder — as a small business owner, tracking your company’s finances is an important part of your job. Unfortunately, it usually lands at the bottom of the to-do list, far from “revenue-generating” activities like sales and servicing clients.
But the truth is that accurately maintaining your company’s books can help you make more money and grow your business. Without financial records, you’d never be able to do things like invoice clients, calculate profit margin, or avoid overpaying in taxes.
That’s where a bookkeeper comes in handy.
A skilled bookkeeper can help take the overwhelming task of monitoring your business’s financial activities and turn them into meaningful, actionable data that you can use. So, what exactly does a bookkeeper do?
1. They enter (AKA “post”) financial transactions into your software or spreadsheet
Using receipts, invoices, credit card statements, and bank statements, bookkeepers record every single financial transaction of the business. If this is currently in your job description, you know it takes a lot of time, patience, and a well-trained eye. With accurate records as a solid foundation, you can better understand how your business is performing and see where it can improve.
2. Reconcile accounts and note the differences
By regularly reconciling credit card and bank statements, bookkeepers can help uncover areas where you might be overpaying for materials or services, as well as situations where you may not be getting paid what you deserve or agreed on.
3. Receive and record cash and checks
When you have a bookkeeper tracking the money coming into your business, you can rest assured someone is making sure you’re getting paid what you’re supposed to. Bookkeepers become intimately familiar with your accounts receivables, so they’ll know who’s late with their payment or hasn’t paid the total they owe. Without someone regularly looking over this part of your business, you could be losing money without even realizing it.
4. Produce financial reports that help you better understand your business
With accurate, timely records, bookkeepers can run reports like profit and loss statements and balance sheets. These types of reports are critical to helping you make wise decisions and understanding all of the implications of one choice over another.
At Xendoo, we make bookkeeping affordable and personalized for exactly what your business needs. We even reconcile and classify every transaction with a tax savings lens, so you’re set up for success at tax time.