You’ve got a great bookkeeper. They are organized, detail-oriented and understand the basic concepts of accounting. They keep your books in order, perform analyses and balances, and can handle even the most complex of tasks. They are the perfect business partner, and they are great at what they do. However, are they doing everything they can to help your business? Yes, your bookkeepers are great at recording transactions, reconciling accounts, and performing other financial tasks. But that is only part of the job they could be performing. If you want your bookkeeper to become the invaluable partner you need and could not live without, you need to give them the chance to shine. Here are seven tasks you can ask your bookkeeper to do for you to help your business thrive and grow.
Create a Financial Statement
If your business generates revenue, you need to track that revenue and create a financial statement. Every quarter, your bookkeeper will add up your sales and subtract expenses to calculate your net profit or loss. But what do you track? If you are not tracking your revenue, your bookkeeper will have a very difficult time calculating your profit. And if you are not tracking your expenses, your bookkeeper will have a very difficult time calculating your loss. Both of these figures will be important to you and they say everything about the overall health of your business. Thankfully, your bookkeeper can help. By creating a financial statement, your bookkeeper can help you better understand your business and measure its success.
Manage Payroll
Your bookkeeper can help calculate your payroll and in some cases, even manage employee benefits if you have employees. Depending on your industry, your payroll requirements can vary widely. If you own a restaurant, for example, payroll taxes will be high. If you own and run an insurance company, you may have a complex set of requirements. Whatever the case, your bookkeeper can help you manage payroll. During the process, they will help your business reduce costs and have a better idea of how much revenue each employee brings in. They also use this to help track that your business is making enough money to cover the costs of the employees you currently have.
Set Up Automated Systems
Your bookkeeper will be able to set up automation systems for some operations, if you perform a specific type of business. The system could help you track inventory and track customer orders. If you have a bar, for example, you will want to track how much liquor you order and how much you sell. In retail stores, you will want to track how many items the customers buy and whether they pay with cash or credit card. You will also want to track how long it takes them to pay the bill. That way, at a moment’s notice, you can tell what your inventory levels are and if you have the money to buy more when the supply dictates that type of purchase. Automation systems are useful for tracking inventory and managing customers.
Track Your Performance
One task your bookkeeper can take on is tracking your performance. They will do this through regularly looking over the numbers of incoming revenue, outgoing expenses, and watching or knowing industry trends. Many bookkeepers have insight of when business will pick up based on the performance in prior years. The more tracking you have your bookkeeper do, the more insight you can gain into how to position your business for the best returns. You can ask your bookkeeper for advice on future decisions based on past performance, giving you an edge in your industry, too.
Keep Track of Your Inventory
Your bookkeeper will be able to keep track of your inventory if your business regularly keeps inventory records. Inventory records help your financial professionals keep track of your profits and losses. They let you know how much money you have in the bank and how much money you owe suppliers. If you don’t keep track of inventory, your bookkeeper will have a difficult time calculating your profits and losses and helping you manage your finances.
For example, if you own a winery, you need to track how many bottles you create, how many are sold, and how many you plan to allow to age for a deeper flavor. Knowing what type of inventory you have on hand also allows you to price your inventory properly. Asking your bookkeeper for insight as to which products have sold best and what their price points were can help you adjust your prices if sales seem stagnant or slow during certain periods of the year.
Dig Into Your Company’s Finances
Your bookkeeper will be able to help you dig into your company’s finances if you regularly perform financial analyses. Analyses let your bookkeeper figure out how much you should be earning and how much you can spend. This can be a tricky, complicated task. If you don’t perform financial analyses regularly, you could have a difficult time making sure you have enough money to cover your expenses and have a buffer for unexpected losses. Your bookkeeper can help you perform financial analyses to figure out how much money you need in the bank, how much income you should place into various investments, and how much you can spend when you need inventory or upgraded equipment.
Help Get Tax Documents Ready for Your Accountants
In the course of helping you manage your finances, your bookkeeper will help you get tax documents ready for your accountants. Your accountant will need access to the documents you need for taxes each year. They will also need access to or copies of the documents you need to file your taxes. Your bookkeeper will be able to help you get all the documents you need ready for your accountant. You will also be able to relax while they do it. Accountants and bookkeepers regularly work together. They know what the other will need, ask for, or information that will help make their jobs easier. Let your bookkeeper and your accountant work together so that at tax time, you can remain stress-free while they work together to figure out all the details.
Turn to Protea Financial for Help Learning What a Bookkeeper Can Do
Your bookkeeper can help you become more efficient and effective in running your business. Whether you want to track inventory or manage payroll, your bookkeeper can help. They will also be able to help you with tracking your performance and getting your business ready for taxes each year. Bookkeepers can also help you dig into your company’s finances and help you make sound financial decisions. With a well-prepared bookkeeper, your business will be more efficient. To find a bookkeeper your business can depend on for these tasks and more, contact Protea Financial today. We are here to help!
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FAQ Section: Maximizing Your Bookkeeper’s Potential for Business Growth
What tasks can my bookkeeper perform beyond basic accounting?
Your bookkeeper can do much more than just record transactions. They can create financial statements, manage payroll, set up automated systems, track performance, monitor inventory, analyze finances, and prepare tax documents, all contributing to your business’s success.
How does creating a financial statement benefit my business?
A financial statement helps track revenue, expenses, and overall profitability. It provides insights into your business’s financial health, aiding in decision-making and strategic planning for future growth and success.
Can my bookkeeper assist in managing payroll?
Yes, bookkeepers can calculate payroll, manage employee benefits, and ensure compliance with payroll tax requirements. This helps streamline operations, control costs, and accurately track revenue generated by each employee.
What are the advantages of setting up automated systems with the help of a bookkeeper?
Automation systems can track inventory, manage customer orders, and streamline business processes. By automating tasks like inventory tracking, businesses can improve efficiency, reduce errors, and make informed decisions based on real-time data.
How does tracking performance benefit my business, and how can my bookkeeper assist in this?
Tracking performance allows businesses to monitor revenue, expenses, and industry trends. Bookkeepers can analyze financial data, provide insights, and offer recommendations for optimizing business performance and maximizing profitability.
Why is it important to keep track of inventory, and how can a bookkeeper help in this regard?
Inventory tracking helps businesses manage profits, losses, and cash flow. Bookkeepers can maintain accurate inventory records, track sales trends, and provide valuable insights for pricing strategies and inventory management.
What role does financial analysis play in business decision-making, and how can my bookkeeper assist with this task?
Financial analysis helps businesses understand earnings, expenses, and investment opportunities. Bookkeepers can conduct thorough financial analyses, assess business performance, and provide guidance on budgeting, investments, and expenditure decisions.
How can my bookkeeper assist in preparing tax documents for my business?
Bookkeepers can help gather and organize tax-related documents, ensuring compliance with tax regulations. They collaborate with accountants to prepare accurate tax filings, reducing stress and ensuring smooth tax processes.
Why is it beneficial for businesses to have bookkeepers and accountants work together?
Collaboration between bookkeepers and accountants ensures comprehensive financial management. They understand each other’s requirements, share relevant information, and streamline processes, ultimately facilitating accurate financial reporting and compliance.
How can Protea Financial help businesses leverage the full potential of their bookkeepers?
Protea Financial offers expert guidance in maximizing bookkeepers’ contributions to business growth. From payroll management to financial analysis and tax preparation, Protea Financial ensures businesses have the support they need for success.
Take the time to find a bookkeeper that you can trust to help with all the business tasks possible. You need to focus on running your business. Leave the numbers to your bookkeeper!
Maximizing Growth with Advanced Bookkeeping Strategies: KPIs, Forecasting, and Cost Optimization
Expanding your bookkeeper’s role can open up new growth opportunities and add a strategic layer to your business operations. For instance, one invaluable service bookkeepers can provide is establishing and monitoring Key Performance Indicators (KPIs). These metrics allow you to measure success, understand where your business stands, and identify areas for improvement. By regularly tracking KPIs like profit margins, overhead ratios, and return on investment (ROI), your bookkeeper can offer insights that help guide smarter business decisions. These metrics give a clear snapshot of performance, offering a foundation for sustainable growth.
Additionally, bookkeepers can play a crucial role in forecasting for seasonal trends and creating budgets that adapt to market fluctuations. For businesses with cyclical revenue, such as retail or hospitality, forecasting can make a world of difference in maintaining steady cash flow and avoiding shortages during leaner months. By analyzing past data, a bookkeeper can project expenses and revenue, helping you allocate resources more effectively. This proactive approach not only mitigates risk but also allows for better strategic planning, so your business remains resilient regardless of external changes.
Beyond budgeting and performance tracking, bookkeepers can also assist in identifying cost-saving opportunities that can directly impact your bottom line. Regularly analyzing expenses and vendor contracts, they can spot patterns where costs can be trimmed or where vendor terms can be renegotiated. Bookkeepers can help you prioritize spending, identify essential versus non-essential costs, and even suggest efficiency improvements within your operations. With a bookkeeper’s guidance in these areas, you can significantly enhance profitability and strengthen your business’s financial health, positioning you for greater long-term success.
