Arizona Bookkeeping Services
- Track income and expenditures so that no bill or invoice is missed.
- Maintain records in the cloud so that no document is ever lost or stolen.
- Bank reconciliations for any checking, credit card, and Paypal accounts.
- Preparation of accounts receivable and payable aging reports.
- Maintain inventory count and inventory processing system.
- Prepare monthly, quarterly, and annual financial statements based on planning.
Bookkeeping for Small Business
Bookkeeping is defined as the systematic process of recording and organizing of the day to day financial activities of a business, and it is used to ensure that all transactions are correct. It is an organized way to track and record the details of income and expenses through a bookkeeping software or spreadsheets like Excel.
The common financial transactions that are involved in this process include billing for goods sold or services provided to clients, recording receipts from customers, processing employees’ salary and related government reports. Bookkeepers regularly summarize these activities into reports that show how the business is doing. Although often interchanged, bookkeeping and accounting are two different entities, but they work together and contribute to the great success and organization of business if carried out properly.
Importance of Bookkeeping
You might have generous amounts of capital and plenty of regular customers, but your business won’t thrive if you don’t have an effective bookkeeping practice. There are multiple benefits to having a good bookkeeper, and with all the changes happening in the financial world, small businesses and major corporations will want to have such a person on staff. Listed below are some of the most common benefits of checking your books.
Helps You in the Planning Process
In order to create a tactical and strategic plan for your business, it is important to have a clear picture of what exactly works or doesn’t work. Bookkeeping provides you with all this necessary information since it covers the past financial performance of your business that you need to plot a course for success and gain the upper hand. Checking your books daily will also help you identify potential problems ahead of time and solve them before they do irreparable damage to your business.
Tax preparation can be time-consuming, expensive, and confusing if you’re not prepared, but it also gets people thinking about greater financial issues that may affect the longevity of their business. Certain benefits of bookkeeping, depending on your situation, often include the ability to pay income taxes, sales taxes, payroll taxes, and workers’ compensation. Going over these numbers and making sure that the withholding tax filed is correct means having a withholding tax record to use as a reference–and this is why it is important to keep tabs on your books.
Monitor Cash Flow
A comprehensive bookkeeping practice allows a business owner to analyze spending and revenue one item at a time. However, business owners have many responsibilities to juggle, and getting involved in the cash flow monitoring can be difficult especially if bookkeeping and accounting aren’t your strong suits. In this case, outsourcing accounting services or utilizing a bookkeeping software may be the best option.
Better Financial Analysis
Another big responsibility of bookkeepers is that they are responsible for preparing financial statements for the business, which includes a profit and loss statement, cash flow statements, and balance sheet. These statements help businesses make informed decisions since they highlight which areas of the company provide the best return on investment or ROI.
Why should I hire a bookkeeper?
Most people believe they are saving money by doing everything themselves, however, hiring a professional bookkeeper can save you money. Hiring an experienced bookkeeper will often save you more time than the money you save. For business owners, time is money.
What are the benefits of hiring a bookkeeper?
There are several benefits for business owners who decide to hire a bookkeeper. The main reasons are to prevent errors, to stay on schedule, and to free up valuable time.
Accountant vs Bookkeeper Whats the difference?
Bookkeeping is the recording of all purchases and sales that your business does. Accounting is an analysis of what that data means for your business. An accountant can be considered a bookkeeper, but a bookkeeper cannot be an accountant without proper certification.
Do I still need an accountant (CPA)?
An experienced bookkeeper can perform many accounting tasks. However, only CPAs, tax attorneys, and enrolled agents are able to represent you on your behalf before the IRS.