You will be juggling dozens of responsibilities when you happen to be a small business owner. However, among the entire task you have at hand, bookkeeping would surely be the last thing on your mind. Take note that it is easy to fall into a false sense of security about your accounting practices if you don’t have the massive lists of daily income and expenses that larger business do.
Also, if you don’t feel like you need one, you probably don’t want to hire a bookkeeper. However, you can’t afford to hire an entire team of people you may or may not need if your business is still starting. When you are curious as to why you must hire a bookkeeper for your business, well, let us help you understand.
If you think that AccountStability Xero Bookkeeping Adelaide service is the same as the traditional accountant, well, you are wrong. It is far different from each other, and that is something you need to understand. The responsibilities of a bookkeeper include:
- Maintenance of General Ledger
There is no doubt that keeping tabs on the general ledger, which in turn tracks income and expenses across different operation areas is undeniably a bookkeeper’s biggest responsibility.
- Create Invoices
Creating invoices and managing the billing process is the traditional responsibility of a bookkeeper. They are also in charge of the follow up with customers who are already late with a payment.
- Balance Subsidiaries
The thing that provides more in-depth detail about specific categories of transactions is the subsidiary ledgers. The bookkeeper will keep it all updated, including the applicable customer discounts or labour expenses.
- Payroll Matters
You likewise must have a consistent payroll system if you are paying anyone for any work they are doing for your business. If not, your workers won’t get paid correctly, or on time which will put you in huge trouble. The person who traditionally handles the payroll is the bookkeeper.
Someone who can take charge of tracking financial transactions is what every small business need for many apparent reasons. Remember that you will not have any insights into your profitability without a general ledger. Also, your cash flow will suffer if you don’t have a consistent invoicing process and of course, your workers will quit if you don’t provide them proper payroll.
Moreover, one of the most significant contributing factors to your company’s cash flow is invoicing. You can expect more on-time payments if you can consistently submit your invoices on time and in a convenient format. Always remember that it would be very much easy for your revenue stream to collapse if you don’t follow a standard process.
Thus, to have a regain control over your failing invoicing system, you should hire an AccountStability Xero Bookkeeping Adelaide.