Bookkeepers

• Establish accounts, post transactions, and ensure legal criteria are met in order to keep track of financial activities.

• Establish a chart of accounts and define bookkeeping principles and procedures to account for financial activities.

• Verify, allocate, and post transactions to subsidiary accounts to keep them up to date.

• Reconcile entries to balance subsidiary accounts.

• Transfer subsidiary account summaries to the general ledger to keep it up to date.

• Prepare a trial balance and reconcile entries to balance the general ledger.

• Collect, analyze, and summarize account information and trends to provide financial reports.

• Study requirements, ensure adherence to rules, file reports, and advise management on essential measures to ensure compliance with federal, state, and local legal requirements.

Your company must also be profitable at the end of the day. Hiring a bookkeeper is critical to your success! Many people operate their businesses on a day-to-day basis. All they know is that they have money in the bank today and that they had a good sales day. The following are some of the advantages of hiring a bookkeeper:

1. You obtain "mission important" information.

Every month, your bookkeeper generates a balance sheet, an income statement, and a cash flow statement, depending on the accounting system you use. These financial statements provide you with all of the information you need to run your business and file your taxes.

Financial statements are made properly and according to accounting rules when a trained bookkeeper is on the job, allowing your accountant to file your taxes swiftly and efficiently.

2. You may be able to save money on taxes.

When a bookkeeper has worked with businesses in your field before, they are familiar with frequent expenses and can tell you which ones are tax deductible.

A bookkeeper who works with other yoga studios, for example, can tell you if the expense of further training for one of your instructors is tax deductible.

Additionally, the expense of engaging and working with a bookkeeper is tax deductible.

3. You might be able to save money on accountancy fees.

Assume you went the entire year without preparing monthly financial statements, then handed your business records over to an accountant to file your taxes. They'd have to go back and generate financial statements from scratch—basically, they'd be doing the work of a bookkeeper.

Because accountants charge a higher rate for their time than bookkeepers, you'll wind up paying more. You'll save money in the long term if you hire a bookkeeper to complete the job right the first time.

Even if you generate your own monthly financial statements and deliver them to your accountant at tax time, you risk being charged extra if any errors are discovered. On your behalf, a competent, professional bookkeeper should be able to deliver perfect books.

4. You'll be able to save time.

You'll have more time to focus on your clients and business success if you spend less time on administrative activities like bookkeeping.

It can be difficult to value your time if you're self-employed. Calculate the value of your time with an online calculator. This might help you decide whether the time it takes you to conduct bookkeeping on your own is worth it.

5. You may even see an increase in profits.

According to one study, organizations' profits increase by 16 percent on average after hiring bookkeepers. One reason for this is that bookkeepers have the knowledge and experience to efficiently manage your accounting, allowing you to focus on other aspects of your business (like increasing profit).