Whether it is a small business, a retail store, or a large organization, the two usual things necessary to run a business are earning and spending. Bookkeepers are the expert personnel that help you keep track of your daily earnings and expenses.
What Does a Bookkeeper Do in Canada?
Any type and size of business you run, there will be a lot of paperwork to administer keeping various government requirements in mind. Professional bookkeeping services Mississauga are capable enough to handle such tasks. Being a corporate raider, you still need to ascertain that someone is there engaged in managing your essential paperwork.
A Short Description About Bookkeepers
Those who maintain financial records of a business are bookkeepers. Traditionally said, there are bunches of things to manage to run a business successfully, and a bookkeeper is the one that sorts everything out.
In today's day and age, entrepreneurs demand higher quality and quantity of services. So, they hire someone to maintain their professional records, deals with tax filing on a timely basis, and actively resolve all issues that come down the pipe.
Key role of a Bookkeeper
A Bookkeeper settles your monthly accounts
Reconciling the monthly reports of a business is one of the most critical tasks for bookkeepers. A combined account ensures that the details loaded in your accounting software keeps pace with the numbers that appear on your financial account statements; whether it is a bank account or credit card or any other. Maintaining this part of duty, your bookkeeper helps you avoid overdraft fees, incorrectly settled transactions, or fraudulent charges.
A Bookkeeper Records and Pay Bills Before The Deadline
Cash flow management is the most critical process of tracking the income and expenses of your business. Recognizing this critical process, your small business bookkeeping service provider will handle all bills the organization receive. Keeping the deadlines and early-payment discounts in mind the bookkeeper will submit the payments before the due date.
A Bookkeeper Deals with Invoices
The life of any business depends on invoice payments. However, many times you may need to send reminders to customers to clear out their invoices. Handling this task on your own, you are likely to give yourself loads of excuses why the customers are not clearing out the bills. With an expert bookkeeper, things are clear. Did the customer clear the invoice? If no, keep on sending follow-ups until they pay the bill.
A Bookkeeper Looks After the Cash Balance
As early as you start assigning your financial assignments, you will be eager to understand your cash balance; the money expected to flow in and out. The bookkeeper will maintain the records and will notify you if you do not have enough resources to pay the bills before it is too late so you the earliest possible can make other arrangements.
A Bookkeeper Processes and Reconciles Payroll
Payroll is a specialized skill. It is not a simple thing anyone can work out. Before you consider to outsource the task to someone, you should understand the key areas a bookkeeper can handle.
- Employment Records including T4s
- Health benefits deductions
- Car, Phone, and Other Allowances
- Expense reimbursements
- Commission, calculations, and bonuses
- CRA payments
- Client expense bill backs
- Payroll management
- Payroll returns
- Severance payment calculation
- Stat pay calculations
A Bookkeeper Provide Reports
The bookkeeper you employ will provide you with both accounts payable and accounts receivable along with an easy to understand profit and loss report. Another critical story your bookkeeper should offer you is the cash summary that shows the accurate details of your bank account. Cash summary report is particularly important to maintain if you have multiple bank accounts.
You may have further questions like, “what a bookkeeper can do for my business?” Well, the expert can-
- Keep track on the missing data
- Monitor sales taxes and ensures that you pay the actual amount of sales tax returns. So, you don't overpay.
- Call your attention to the renewal date of your business license. Some bookkeepers do this task themselves
- Provide clean and complete annual paperwork to your accountant to minimize the fees
- Remind your advisor about the due date of tax filings
- Remark the spending that doesn't make sense to your business or the charges you have double-billed for some items.
- Register the Worker’s Compensation report and deals with it
There is a lot your bookkeepers can handle for your company. You need to understand that all the things listed here are vital. Over time if you again wonder what does a bookkeeper do you will have the answer; the expert will handle everything right from balancing the transactions to processing your company's payroll.