The term ‘bookkeeping services’ conjures images of endless data entry into physical ledgers, but they’re far more than that.
While data entry is a significant part of bookkeeping, there are many practical applications that can help you stay on top of your business’s finances.
But what do bookkeeping services include? This article will answer that.
What do bookkeeping services include?
Popular among businesses across the country, bookkeeping services are the practice of recording and reconciling all of your daily transactions.
Your bookkeeper will then present this information in a standardised format, which forms the foundation of your business’s accounting and financial management.
Apart from data entry and accounts reconciliation, there are a few other things bookkeeping services include.
Accounts receivable/payable
A main function of your bookkeeper will be to keep on top of your invoicing, from drafting invoices to sending them to clients. But there’s more. Your bookkeeper will also take control of your accounts receivable and payable.
This means they will make sure your clients pay their invoices on time, and if not, they will do the chasing for you. The same goes for your payments. Your bookkeeper will ensure your suppliers are paid, and your bills are up-to-date.
Payroll
In some cases, depending on the service you receive, your bookkeeper can take care of your payroll.
Your bookkeeper will make all of the necessary tax and National Insurance deductions from your staff’s wages (as well as your contributions), and make sure you pay your team on the agreed timeframe. This means they will also complete the essential compliance paperwork, keeping your systems in line with HMRC guidance.
Monthly financial reports
To help you keep track of your business’s performance, your bookkeeper will create various financial reports and deliver them to you on a monthly basis. These include:
- Balance sheets – the statement showing your business’s current financial position.
- Profit and loss reports – a document tracking your earnings and losses to give you an overall picture of your profitability.
- Cashflow statements – records showing the money coming in and out of your business.
With the three reports combined, you’ll have a complete picture of your business’s day-to-day financial operation. This can be a valuable resource if you’re looking to create a business plan or apply for funding.
Bank reconciliation
After extracting your business’s essential financial information, your bookkeeper will then compare this to your banking history. This is an essential part of the service as it may help flag any missed transactions or any incorrect data entry.
Reconciling your bank accounts with your books can help you maintain a healthy process and avoid any glaring errors which could become an issue further down the road.
Need a bookkeeper?
Although bookkeeping and accounting do go hand-in-hand, they’re in no way the same. Your books form the basis of all your important financial reporting throughout the year, so, without a good bookkeeper you could find the essentials falling by the wayside.
We’ve been providing bookkeeping services to our clients for years, so we will happily do the same for you.
Get in touch to discuss our bookkeeping services.
