Many businesses think that they need an accountant just for their bookkeeping – and they’re right. However, CPAs have the experience and expertise to do much more than ‘handle the books’ and can really help turn a business around financially.
Setting The Foundation With Bookkeeping
It’s important to first understand what bookkeepers do and how they fit into the full financial picture of your business.
A bookkeeper can manage the transactions through your accounting system’s bank feed, such as matching deposits for accounts receivable or outgoing transactions as payments against vendor bills, matching downloading transactions to existing transactions in the corresponding register and adding those that aren’t already there. Such transactions are most likely those generated outside of the accounting system – credit card or debit card transactions, any EFT/ACH, and handwritten checks.
Accounts receivable management can include creating invoices, sending invoices to customers, providing statements, and assisting in collections, and then document those payments in QuickBooks or similar, and create a deposit to match what the client takes to the bank.
Bookkeepers can handle all of the vendor bills a company receives, and schedule and manage payments accordingly.
Bookkeepers can also manage payroll in QuickBooks or other similar accounting programs and assist in the processing of paychecks and/or liability payments and returns. They can also enter payroll data into the accounting system after your payroll service provider has submitted the reports.
Technology & Process Recommendations
Bookkeepers also keep their fingers on the pulse of the latest and greatest technologies. It may be a new app specific to your industry or a way to help cut labor costs and reduce time theft. They may also develop efficient workflow in response to a specific issue. At Bedinghaus, we’ve worked with QuickBooks since its inception. All of our accounting staff know and understand its nuances and features to serve our clients with businesses accounting, bookkeeping, payroll, and budgets.
Since bookkeepers have a much more intimate knowledge of your books, it’s often easier to have your bookkeeper work with your tax preparer when it’s time to file your annual return. They can also verify that the estimated tax payment is correct.
The Full Financial Picture
From setting up your accounting system and processes to training and assisting your staff in day-to-day accounting tasks, or managing any or all of the above, accounting starts with good bookkeeping. While good bookkeeping is important for your business, it’s just one tactic in a CPA’s toolkit for you and your business.
A CPA can also serve as a CFO, assisting with far greater finanical decisions beyond the day-to-day books. A CPA should be advising on your business structure, complex tax filings, buying or selling a business, and protecting your assets through tax minimization strategies that are customized to your business and industry.
While good bookkeeping is the first step to financial wellness, it’s important to have someone like a CPA advising you on your business. Contact us today to learn more about our bookkeeping services as well as our full service offering to be your outsourced CFO.