Importance of Bookkeeping For Your Business

Bookkeeping is one of the most important tasks in accounting, where the accountant maintains the records related to the financial transaction, helps a company with its business strategy and alerts the management about discrepancies in the financial data, if any. 

​bookkeeper is a professional who handles all of your financial data and helps you conduct your business smartly and efficiently.
In this article, we discuss the critical role that a bookkeeper plays in your business.

Captures Financial and Transactional Data

​As a business owner, it is not possible for you to manage all the invoice details by yourself. You will not have the time or the patience to follow up with the payment structure. You cannot afford to miss out on the details of the financial transactions made with your vendor either, as that would put you in trouble with the authorities. All of these details are faithfully captured by the bookkeeper. The bookkeeper makes sure that every transactional detail is entered into the records. 

Handles Tax Obligations

The Bookkeeper manages your annual tax returns and makes sure that you fulfill your tax requirements on time. The bookkeeper handles accounting processes such as profit and loss statements, balance sheets and cash flow analysis. They walk you through the technical jargon related to accounting and make sound financial statements for your business.

Send Out a Clear Message to Investors

​The bookkeepers leaves investors in no doubt about the financial status of the company. They make sure that the investors get all the information they need in the form of data, graphs and charts. They help with the smooth functioning of the business and lay out a sound financial foundation on which you can build your business.

Helps Formulate Business Plans

​Your bookkeeper is closely involved in the tracking of the data related to various business ideas and is in a position to tell you very quickly whether a particular business strategy would work or not, based on the evidence available to them. This can be of a lot of help when you are strategizing with your business and creating business plans to be shown to investors, business partners and clients.

Makes Sure That Your Firm is In Full Agreement with the Law

​It is the bookkeeper’s job to ensure that your financial statements are authentic and genuine and made according to the strict requirements of the IRS and other regulatory agencies. The bookkeeper is supposed to act independently of the business and not bow down to pressure from the management. They have an obligation to the IRS and other regulators. 

​These are the 5 important roles carried out by bookkeepers in the service of your firm. Bookkeeping today is still the same as it used to be in the past, except that bookkeepers now have access to advanced accounting technologies such as cloud accounting. This simplifies their tasks to a great extent.
Also, cloud accounting services such as QuickBooks hosting allow for maximum data security, privacy and offer daily backups, as well as an anytime, anywhere access to data. Do get in touch with us for more information on QuickBooks hosting.