Why is someone referred to as “just a bookkeeper”? Is it because there are varying degrees of education, skills, experience and time in this occupation?
For instance, is someone who enters transactions in the general ledger with no knowledge of the principles of accounting or the practice of consistency a bookkeeper or an admin? An office manager may have some accounting knowledge, but bookkeeping is probably not their main responsibility. Does the director of a non-profit have the time to devout to properly manage the financials of the organization?
In other words, why is a true Bookkeeper, with the proper education and experience, so valuable to a business?
They are the connection between
The daily transactions, the general ledger, and the resulting reports
The bookkeeper is responsible to ensure that all transactions have been correctly entered and classified in the general ledger so they result in accurate financials.
The business owner & management and utilization of those reports
The bookkeeper ensures the accuracy and timely delivery of all reports that the owner and/or management need to properly manage the business, forecast growth, and make business decisions.
The business and its accountability to interest parties
The bookkeeper can provide the necessary financials statements as requested by partners, board members, lenders and investors.
The accountant and the documentation needed to complete tax filings and provide advisory services
The bookkeeper will perform the year end review to ensure the accuracy and consistency of the financial records and that details on all transactions are available to allow for seamless tax preparation.
The business owner and their accountant
The bookkeeper will provide the information for a comprehensive review of the business by the accountant in order to provide the best tax advisory services to the business owner.
Without a properly trained, and better yet licensed, bookkeeper involved in a business, there will be gaps in these connections.
Do you have good connections in your business, or does it feel like you are flying on a wing and a prayer? Find out how hiring a Certified Public Bookkeeper can provide solutions that helps your connections work together.
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