Is bookkeeping consuming a significant amount of your time or causing endless headaches? If yes, there's a solution: bookkeeping services. Outsourcing bookkeeping is advisable because it helps business owners like you save valuable time and resources. A reputable service provider offers experts that tackle all your bookkeeping, thereby freeing you to focus on core areas and operations, like expansion and new product development. Besides, outsourcing is considerably cheaper than hiring and building a team from scratch. But, before partnering with a bookkeeping service provider, you should know what they offer. Below are some of the roles and responsibilities of third-party bookkeepers.
1. Preparing financial reports
Established businesses use financial reports or statements to inform stakeholders and decision-makers about their financial status and performance within a particular time frame. These reports have diverse information, including cash flow, retained earnings, and income statements. They help business owners and management teams make informed financial decisions, manage debt effectively, simplify tax processes, and showcase transparency. Bookkeepers prepare reports including balance sheets, cash flow statements, and shareholders' equity statements. Therefore, when you work with them, rest assured that you'll have timely, accurate, up-to-date reports. Besides, reputable companies have trained, certified, and experienced bookkeepers who prepare statements per your requirements. They also help you resolve and avoid many issues, including improper record-keeping, unreconciled bank accounts, and poor data backups.
2. Managing accounts
Most businesses have two types of accounts: payable and receivable. Accounts payable (AP) refers to what your business owes due to material procurement, logistics, leasing, licensing, etc. On the contrary, accounts receivable (AR) cover all the debts your customers haven't paid yet. Trained bookkeepers from third-party service providers help you manage AP and AR. Consequently, they can improve your company's operational efficiency, streamline invoice creation and reception, speed up payments, and enhance customer and supplier experiences. In addition, the efficiency associated with these professionals ensures you are well-acquainted with your organization's financial health.
3. Processing payrolls
A typical payroll contains the names of workers entitled to receive payments, wages, or salaries. Although payroll processing is vital in streamlining employee compensation, it can be tedious and time-consuming, especially when a large team is involved. And it becomes scarier when you factor in common processing mistakes, including employee misclassification and erroneous pay calculation. Fortunately, bookkeeping services enable you to avoid such issues and enjoy peace of mind by assigning payroll processing to capable bookkeepers. These experts effectively calculate total earnings for employees, withhold deductions, deliver payments, and tackle many other tasks.
To find out more, you can look to a company such as Tax Specialists Of Northern Colorado LLC.