Hiring a bookkeeper is changing as you need to find someone with good interpersonal skills, a good academic foundation in accounting, and a strong interest to provide viable bookkeeping solutions.
However, after the entire quest even if you find the one, are you aware of the scope of their roles and responsibilities?
Do you know what an efficient bookkeeper is expected to do?
If NO, this article is for you!
If YES, let’s check out, are we on the same lines!
So, here we begin with 10 roles and responsibilities of an efficient bookkeeper:
Save you money
As the role of a bookkeeper is to keep a detailed record of all your bills, invoices, inflows, and outflows, you can relieve yourself from accumulating it for your accountant to take the charge. As the hourly rate of an accountant is much higher than any bookkeeper, assigning such tasks of bookkeeping and maintaining records to an accountant does not make sense.
Hence a bookkeeper saves you a considerable amount of money annually.
Keep you up to date
We are not talking about your personality here. It’s about the financial records of your business. An efficient bookkeeper who is tech-savvy can update your accounts on ‘cloud accounting’.
It allows you to check your accounting position in real-time. It gives you a fair idea about your inflows and outflows to make important strategic decisions for your business.
Provide detailed management accounts
The role of a bookkeeper is not limited to accumulating records. The scope of responsibility extends to making detailed management accounts to help with detailed analysis about the business profitability. The month on month up to date financial data gives you a good assessment of how your business is doing.
Return filing
There are several types of taxes that are required to be paid by a business. VAT, Corporation Tax, Self-Assessment, and annual accounts are some of the federal regulations which every business needs to comply with.
Filing your returns in time is a tedious task. However, an efficient bookkeeper can do the job for you by keeping your books up to date so that you won’t be late in filing your returns.
Assist with cash flows
Cash is considered the lifeline of any business. A sudden cash crunch may lead to the temporary suspension of operations which further leads to loss. An efficient bookkeeper helps you to maintain a decent cash flow by providing detailed reports on cash flows.
Liaising with Accountants
All the bookkeeping records maintained by the bookkeeper are utilized by an accountant at year-end to prepare annual accounts and assess corporate tax payments. Several doubts and clarifications might be sought by an accountant regarding certain transactions.
A bookkeeper should be available to clear all the doubts for smooth functioning without any delay.
Do you spend your day and nights updating your financial records? Your time is more worthy in taking management decisions, hence hiring an efficient bookkeeper can help.