A small business owner may not necessarily have all the resources or foreknowledge necessary to figure out which bookkeeping methods will work successfully right off the bat. That is why it is so essential for franchisees to ensure that they invest in adaptive bookkeeping solutions that cater to that company’s specific policies and needs. As you continue learning about the everyday necessities of operating a business, you may wonder how bookkeeping services work in your industry.
How Bookkeeping Services Work
What is the job of an accountant, exactly? Why are bookkeeping services so essential to your company’s financial health? Let’s take a look at the basics of bookkeeping now.
What is Bookkeeping?
Broadly speaking, bookkeepers act as record keepers, documenting every financial transaction the company goes through. This can include money coming in as well as money going out. It is the responsibility of bookkeeping to accurately record, manage, and organize the financial data of the business. General accountants can take information recorded by bookkeepers in order to process payments and assess the financial health of the company.
Breakdown of Duties
The main duty of a bookkeeper is to record daily transactions and update balances with accuracy and precision. But what does this look like on an everyday basis? What functions would a bookkeeper perform during work hours? A bookkeeper’s actual duties may include:
- -Establishing and maintaining vendor accounts
- -Managing Accounts Payable and Accounts Receivable
- -Entering, paying, and documenting bills
- -Creating and sending invoices
- -Managing bank and credit card accounts for the company
- -Collecting past due invoices
- -Supporting the CFO and other accounting staff by preparing documents for analysis
- -Creating and filing proper tax documents for audit support
- -All other general financial data entry tasks
While the daily duties of a bookkeeper may vary from company to company, the major purpose for these services is the same. Depending on how simple or how complex the financial needs of your company are, you may be looking for additional accounting services to take some of the weight off of the shoulders of your in-house staff.
Bookkeeping Vs. Accounting: What’s the Difference?
Bookkeepers and accountants can often share the same duties as they both work within the same department with a focus on maintaining the company’s finances. However, a few key differences between bookkeepers and accountants can help you pinpoint exactly what role you are looking to fill in your accounting department.
A bookkeeper usually focuses on the day-to-day tasks of documentation, data entry, and statement generation. They may also record transactions as well as handle AR and AP needs. Some even manage payroll needs and make sure that all payments going out and coming in are done so in a timely manner.
An accountant, on the other hand, is someone who analyzes the information organized by the bookkeeper in order to recommend next-step actions. They might prepare and file tax returns and apply for loans, but that is the extent of their paperwork. Accountants work more in advisory roles towards the company owner, using information gathered by the bookkeeper to make the best financial recommendations for the business.
How to Streamline Your Bookkeeping Services
Whether you are just establishing an accounting department for the first time or looking to offload some of the excessive tasks that you or a sole bookkeeper are dealing with, you can use automated bookkeeping software in several ways to experience great benefits for your franchise. It’s easy to customize our software to cater to your specific needs, helping you form a solid accounting team without skipping a beat.
Indevia’s monthly bookkeeping software is available for business owners with a wide range of software and accounting proficiencies, helping you integrate your own needs with our advanced solutions as seamlessly as possible. A vetted team of accounting experts will assist you every step of the way, making sure that you will never have to handle overwhelming financial needs by yourself again.
Catch Up on Overdue Financial Needs
Are you in need of past-period bookkeeping? We offer services that center the client, helping you get bills paid and outstanding invoices closed out as quickly as possible. Once you have fallen behind with prior period payments that are left open and bills that are left unpaid, it can become increasingly difficult to dig yourself out of that pit. With Indevia, you can catch up sooner than ever, helping you stay more organized to avoid more pay period hiccups in the future.
Want to streamline your accounting services and enjoy a full range of bookkeeping benefits without having to worry about the stress of extra personnel? Get in touch with our Indevia experts today and schedule a personal consultation to see how our customized software can work for you!