Certified bookkeepers are trained to recognize even a single error that might have significant consequences
When starting a small business, there are many preparations to make. It comprises all crucial decisions, including when to bring in specialists to assist with the operational component that will ensure the smooth operation of the firm.
Aside from operational functions, the financial component of the organization is one of the most significant factors to consider.
Hiring a qualified bookkeeper may aid the firm’s financial management by ensuring a consistent financial record and cost savings.
What is a certified bookkeeper?
A certified bookkeeper has a bachelor’s degree in accounting and holds a bookkeeping certification.
However, a prospective certified bookkeeper who lacks a bachelor’s degree can nonetheless qualify by meeting the following requirements:
— Accounting Fundamentals
— Payroll Fundamentals
— Accounting Principles
— QuickBooks Fundamentals
A small business requiring bookkeeping services may grow its revenue with the help of a certified bookkeeper.
Specific duties of a bookkeeper
A certified bookkeeper utilizes the general ledgers used to create a balance sheet and income statement to record financial information.
Bookkeepers are also in charge of keeping track of all financial activities for a company, including the following:
— Purchases
— Expenses
— Sales income
— Invoice
— Payments
Consistency, accuracy, and reducing mistakes are essential qualities that companies seek in candidates for the role of a certified bookkeeper.
A certified bookkeeper is also responsible for supervising and reconciling hundreds of financial transactions in larger firms. Hence, accounting knowledge and understanding of how to use accounting software systems are crucial.
Generally, a certified bookkeeper is responsible for the first six phases of the accounting cycle, while an accountant handles the last two steps of it.
Why your small business needs a certified bookkeeper
Certified bookkeepers are trained to recognize even a single error that might have significant consequences, such as running out of funds.
Without accurate financial records, it is difficult (if not impossible) to discern a company’s direction.
A small business needs to hire a certified bookkeeper, especially if it has multiple projects going and is actively seeking new clients and methods to increase revenue.
A certified bookkeeper knows the cycle of the company’s income and spending cycle, making it simple to manage invoices, pay for supplies, and balance everything at tax time.
If a company opts not to hire a certified bookkeeper, it can make significant price and costing errors or make bad decisions based on inaccurate data.
Smart tips before a small business hire a bookkeeper
Hiring a bookkeeper with no valid certification in the field is not a good idea.
Using various bookkeeping software and technological literacy is a prerequisite for the role. When hiring a certified bookkeeper, a small business needs to keep the following tips below:
Good bookkeeping service reputation
As a small business grows, looking for a professional bookkeeper is vital. A certified bookkeeper maintains good records in compliance with the Community Reinvestment Act (CRA) and maintains the financial health of a business.
Outsourcing bookkeeping services can accurately help save a small business’s financial data.
Seeking a referral from other business owners that outsource to a trusted bookkeeping service provider is highly recommended. This ensures that a small business receives top-notch services from a certified bookkeeper.
Delivers timely financial information
A certified bookkeeper must punctually present specific financial reports monthly, quarterly, or annual.
By sending financial statements on time, a certified bookkeeper has more time to educate small businesses on how to understand and evaluate each account. It will aid leaders in making the best decisions for their small businesses.
Uses up-to-date software
As the regulator of the business’s earnings, service quality is significant. Using outdated software may result in slow service, loss of substantial clients, and low income.
An updated accounting or bookkeeping software can enhance the bookkeeping services offered to a startup business.
Additionally, upgrading the most recent software enables a firm to enter its account information and available stock accurately. This can result in more sales and increased profitability.
Availability
A certified bookkeeper works with small businesses year-round, especially during tax season. This only means that the availability of a service provider is critical in keeping the financial obligations running because
Recommended bookkeeper of a bank
It is necessary to guarantee that all financial transactions are handled and recorded correctly.
Finding a reliable accounting service is difficult. It is also ideal for small businesses to contact their banks for referrals on where to acquire a qualified bookkeeper.
Hiring a certified bookkeeper: Smart move for small business
First, hiring a certified bookkeeper for the data collection and entry phases of a business’ accounting cycle is a smart move for startups.
Secondly, bookkeeping is essential since a startup’s survival requires accurate accounting records.
With proper bookkeeping, a small business may better manage its cash flow, satisfy its financial obligations, and plan its investments.
Finally, properly recorded financial data may give significant, actionable insight when a framework is in place to prevent problems such as fraud, especially for small businesses.
