Entrepreneurs and growing businesses often need assistance in understanding the ins and outs of financial record keeping, yet cannot afford to hire full-time personnel with this needed expertise. For the business owner, running a business is complex with many demands for their time, but people are not all experts at handling their money. Today, virtually everybody needs some professional guidance.
Despite the availability of easy-to-use accounting software, many small-business owners have neither the time nor the inclination to use the software themselves. Wise businesspeople also realize that their time can better be spent in marketing and doing the income-producing work of their business. As a result, bookkeeping services can provide a critical service in the life of a business owner. Bookkeeping assistance is crucial during boom and during difficult economic downturns because businesses realize that if they are not careful about their money, they soon will not be in business.
Bookkeeping tasks range from making deposits, reconciling bank statements, and recording transactions to doing payroll, billing, managing accounts receivable and payable, and preparing financial reports for tax or accounting purposes.
Accounting, which is not in the purview of the bookkeeper, involves interpreting the financial statements (income statement, balance sheet, profit and loss) and determining how best to use that information in business and tax planning. Sometimes people confuse bookkeeping with accounting, especially since software manufacturers refer to their products as accounting software when in fact this software simply helps keep track of information and does not interpret it. Bookkeepers keep the records; accountants audit and analyze them.
Effective use of bookkeeping resources and services mean that when tax time comes and your CPA reviews your records, that it is more efficient and accurate with less stress in pulling all those records together.