Keeping track of your financial details, generating income, and ensuring customer satisfaction is a paramount task for any small business owners or larger business owners alike. Both need accountants and bookkeepers for different purposes. Hire #bookkeeping professionals to do the dirty job while you make money and spend it the right way. If one is not a numbers person, small business bookkeeping services are best to hand over to professionals.
Thinking About Small Business Bookkeeping Services?
Small businesses need bookkeeping for a host of reasons: managing tax, keeping an eye on cash flow, and foreign transactions, managing bank feeds, preparing financial statements, managing accounts receivable and payable, and much more. If you are looking for bookkeeping services in Mississauga, Brampton, Ajax, Caledon, Etobicoke or the surrounding Greater Toronto Area at minimum cost, Pro Finance E&E Limited can be your ultimate saviour.
What Does a Bookkeeper Do?
- Cash flow statement: Bookkeepers keep track of cash and cash-like equivalents entering and leaving the company with accounting software so that it does not get short of day-to-day cash. They inform if actions or what actions need to be taken in dire times.
- Statement of retained earnings: Bookkeeping services help to get a clear view of your reserves, the share of capital, and equity in a certain period of time.
- Managing invoices & receivable ledger: Bookkeepers prepare invoices, send them to clients, and check the receivable ledger to chase late payments.
- Making accountants’ jobs easier: Before accountants use their expertise and knowledge for business recommendations, report to the board, and rebate from tax payments, bookkeepers ensure the accounts are up-to-date and valid.
- Handling payable ledger: Payments of supplier invoices, expenses, payroll, and petty cash- all are handled by bookkeepers to a certain point.
Difference between bookkeepers and accountants
1. While bookkeepers record and categorize daily payments, and conduct monthly reconciliation; accountants adjust entries and act as advisors to owners.
2. Bookkeepers are in charge of keeping records of payments received and sending customers invoices; accountants calculate the cost of these operations.
3. They generate monthly statements which are later analyzed and reviewed by accountants.
4. They are in charge of payroll services; while accountants forecast the financial conditions of business in the future and advice solutions accordingly.
5. As the name suggests, bookkeepers prepare books for accountants; and accountants use those books to do audits.
6. Prepare year-end tax documents for accountants to file tax returns, and conduct and advise efficient tax planning.
Things bookkeepers do for small businesses
Let’s look at the gamut of tasks bookkeepers perform:
- Accurate and efficient record keeping: keep your day-to-day books up-to-date with top-notch software and if any inconsistencies are visible, report them to accountants to resolve them soon.
- Managing bank feeds and accounts payable: Bookkeepers link bank feeds with software so that owners and accountants can access them anytime they want. They also pay off business payments such as supplier invoices, petty cash, and expenses on the owner’s behalf.
- Managing year-end tax documents: Small businesses cannot afford to pay fines for late tax payments. Bookkeepers make sure you stay on top of your taxes on time by providing accurate, necessary documents to the CRA.
- Managing invoices, financial statements, and accounts receivable: Bookkeepers prepare cash flow statements, balance sheets, profit and loss statements, chase late payments, keep invoices and send them to clients, managing accounts receivable ledger so that you get payments on time.
- Process payroll and prepare books: Bookkeepers fulfill HR’s functions by processing paychecks and tax payments for employees for small businesses. They also keep books valid and up-to-date so that accountants can file tax returns on time.
- Manage foreign currency transactions and perform stock-takes: Bookkeepers use apps to maintain foreign exchange rates for foreign transactions. They also report on stock items if any discrepancies occur to solve them immediately.
Tips for small businesses bookkeeping services
- Keep your business accounts and personal accounts separate so that your bookkeepers don’t have to spend a lot of time trying to reconcile them, and sometimes make mistakes with them.
- Owners of C-corps and S-corps must put themselves on the payroll like any other employee. We also suggest that owners and partners pay themselves a salary as an owner’s draw not be on the payroll.
- Reimburse paychecks which are separate from your monthly salary; for the payments made through personal accounts for your business. You should use the 56 cents per mile you received for business trips you made with your personal vehicle for fuel and maintenance.
- Scan each paper receipt and attach them to the bookkeeping software within the transaction entry so that you can produce them to the CRA for tax deductions.
- Outsourcing payroll as paying taxes, withholding employee taxes, and issuing paychecks is a mammoth task for small business owners.
Do bookkeepers and accountants work together?
- Both the accountant and the bookkeeper help you choose the appropriate software that performs efficiently for owners and employees, especially for bookkeepers.
- Bookkeepers and accountants will get together through cloud account software with shared access to look at business numbers and explain and offer solutions if anything isn’t clear.
- Accountants will file taxes based on the books provided by bookkeepers. They will also file reports based on the information provided by bookkeepers regarding invoices, expenses, income, net profit, assets, liabilities, and taxes.
- Bookkeepers will provide management accounts to accountants, based on which accountants will report to owners about the financial health of the business and offer solutions if needed.
Wrapping up
Bookkeeping is a cumbersome process for small business owners who have to do a lot of things on their own to keep their businesses afloat. Hire professional bookkeepers of Pro Finance E&E Limited to help with all of the numbers and keep up with accounts and taxes for sound business growth. For small business bookkeeping services at a considerable cost, you can visit the website to learn more.
