Professional bookkeeping services can be a huge help with managing your books as you run your business and see it grow. There are many different areas of professional bookkeeping services you might find yourself needing assistance with. An expanding business requires additional insights from professionals who have far more experience and knowledge in specific areas than what you might have.
One area of importance is accounting and bookkeeping. As a small business just opening up, you might have seen one or two sales a day ballooning out to a dozen sales a day. This is a welcome sight and something to inspire confidence in the future of your company.
However, it also requires you to dig deeper into your accounting knowledge and skills in order to handle the growth of your company’s financial systems. And, even if you do have the knowledge and skills, you most certainly do not have the time to manage your company, recruit employees, implement marketing plans and handle all the financial activities.
This is when you have to decide to work “on your business” instead of “in your business.” Now is the best time to interview professional bookkeepers, evaluate their bookkeeping services and ascertain who will be the best fit for your businesses specific financial management needs. Let’s look at some of the areas your professional bookkeeping services should help you to understand and manage - all of which can reduce over spending and prevent other monetary problems you might run into.
Sales are essential to your business. Without strong sales your company will certainly struggle. Monitoring your sales is essential as it helps to identify weak links in your business, determine which products and/or services you provide are popular and which are dragging your company down. With your new professional bookkeeping services, it is possible to identify all of this. The bookkeeping services of a professional bookkeeper can help you to:
1. Implement a new accounts receivable function that includes customer invoicing, processing accounts, posting payments made and monitoring aging receivables of the business.
2. Understand the importance of all of these features - when implemented, you can see where all of the money is in real time so you never again wonder where a particular payment is, if someone has made a payment or when a bill is due
Bookkeeping services are all about helping your company thrive, and this is possible through improved sales monitoring features.
However, there are always two sides to every aspect of your business. So, on the other side of sales you have bills.
As is the case with sales, you need appropriate monitoring of bills. Your new bookkeeping services will assist with this Accounts Payable process, ranging from recording and tracking pay to vendors, submitting invoices to clients, posting bills, producing credit memo adjustments and several other elements that all make it easier to know where your money is going.
Your new bookkeeping services do more than just keeping spreadsheets and tracking down financial variables. It will also keep you informed of where all of your money is. Without detailed and professional bookkeeping services, this can prove a bit of a challenge, so taking advantage of the professional bookkeeping services of a skilled and knowledgeable bookkeeper can completely transform your business. Your bookkeeper should teach you how to monitor your books, where to look for money and how the different financial variables can impact the way you do business.
The general ledger is most likely what you think of when it comes to bookkeeping. This is where all of the banking statements are filed, your reports are produced and other major bookkeeping documents are rendered. Of course, there are other elements associated with this practice and your newly acquired bookkeeping services can help you understand these particulars - it is essential for you to know all about it and what all is involved.
Your new bookkeeping services should help you to understand month ending entries in your ledger, how to go over bank and credit card statements, year-end statement reporting such as the Balance Sheet and Profit and Loss Statement (whether it is the end of the fiscal year or the calendar year) and how to perform a bank reconciliation of expenses with checking, banking and credit card accounts.
All of these variables are important to understand and can greatly impact the way your company does business. Producing financial statements shows how your company is performing from month to month, if you are selling more material and services or if certain aspects are struggling. This way, you can stay on top of your company and always know what is going on with it.
Attempting to do this on your own, even with some bookkeeping training, is difficult. Your bookkeeping services provider will stay on top of these financial elements for you, all while helping you to learn the needed accounting features as you go. This way, you know what to look for and what is important for you to watch.
When starting your company, you most likely envisioned it as a large company, growing by the day and expanding to new regions as your client base expands as well. When your dream starts to happen you are going to discover many new challenges to take care – challenges you might never have realized. So, as you can see, it is important to bring in the bookkeeping services of a professional bookkeeper to assist you with your new and growing accounting needs.
Stephanie Horne is an experienced bookkeeper and Enrolled Agent. She is the owner and founder of Horne Financial Services in Rohnert Park, California along with this website and has over 20 years of in person, virtual and outsourced bookkeeping/accounting and tax preparation experience with businesses of all sizes.
Her love and passion is to work individually with business owners and families to help alleviate any financial stress or concerns by helping them to understand and have better control of their income, expenses, cash flow, and tax liabilities. She can be reached through her Horne Financial Services Facebook page as well.