Bookkeeping for Small Businesses | By: John Mollica – CPA & CISA
What is Bookkeeping?
Bookkeeping services include tracking, recording, and organizing the financial and economic activity entered by your business every single day.
Whether it’s that cup of coffee you grabbed at Starbucks this morning or the month’s rent, all financial and economic actions result in bookkeeping.
These actions, which are recording using what are called journal entries, eventually make up the accounting of your business.
By keeping on top of your bookkeeping, you can produce accurate financial statements at will to use whenever you need.
What do Bookkeepers do for Small Businesses?
You can imagine there are potentially hundreds or even thousands of transactions your business produces every single month.
Taking the time to learn how to do bookkeeping, and then doing so for your business takes time. Way too much time.
That’s time you could be spending:
- Identifying ideal prospects
- Holding sales calls
- Creating marketing campaigns
- Closing deals
- Making money!
Rather than spending 60+ hours a month doing bookkeeping, you can hire a bookkeeper to handle this function for you.
Advantages of hiring a bookkeeper include:
- Save 60+ hours a month for a fraction of the cost. Your time is your most valuable asset!
- Work with an expert who understands the importance of bookkeeping, ensuring accurate financials every time
- Find a QuickBooks account expert who is well versed in QuickBooks services
What else can a bookkeeper do for you? A list of bookkeeping services includes:
- Record the daily activity of your business
- Reconcile all accounts to your bank and credit card statements
- Ensure collections are up-to-date
- Ensure payments are up-to-date
- Produce simple financial statements, such as your balance sheet and income statement
Sometimes a higher level of service is needed than bookkeeping alone. This will depend on how complex your business and industry are.
Ask yourself the following questions when considering if you need an accountant or CPA instead of a bookkeeper:
- Do I have inventory, intangible assets, excessive fixed assets, complex debt, complex equity, or other advanced, complex assets or liabilities in my business?
- Do I need my books to be kept on an accrual basis, rather than on a cash basis?
- Are my reporting needs complex?
- Will the accuracy of my financial information significantly impact my income, expenses, and/or the ability to continue operating my business?
If you answered “yes” to any of the above questions, you may need an accountant or CPA in addition to a bookkeeper.
Sometimes, the same individual or firm can provide both accounting and bookkeeping services. Just make sure to be very clear on the exact services you need from an accountant.
Virtual bookkeeping services are typically cheaper, as they are able to save money on the infrastructure that the old brick-and-mortar style of bookkeeping firm spends.
Would you like to delegate your business bookkeeping function? We are happy to help. Give us a call today. Make sure to ask about our bookkeeping price packages.
Have a question? Feel free to ask!
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