Bookkeeping is the recording of financial transactions, and is essential part of the process of accounting in business and other organizations. The small business owners are commonly doing all the necessary things in relation with their business on their own. From doing to small details to preparing all the documents needed to submit to the authority, they are in-charge of it, thinking that they don’t need the help of anybody and that they can manage it on their own. Additionally, there are occasions, or more likely, that small business owners do their own bookkeeping in the hopes of saving money and not having to employ a bookkeeper, but this potentially puts them in more danger.
To avoid the risk of your company failing to meet its financial commitments, it is recommended that day-to-day expenses be managed with the assistance of an accountant or bookkeeper. These experts can expertly keep track of cash flow from different accounts, bills, and invoices, as well as assist in the organization of the books to better manage your finances.
The bookkeeper will assist business owners in understanding their company's financial situation. It also aids them in understanding the company's profit or loss, which is an important aspect of running a business. It is nearly impossible for business owners to make current decisions about strategy and day-to-day operations without this information. Bookkeeping, in particular, assists business owners in running their businesses efficiently and effectively, with the help as well of the valuable information provided to the owners.
Also, a bookkeeper is responsible for financial administrative activities such as account planning and keeping track of the everyday financial transactions. These statistics are not evaluated by bookkeepers, and they do not include financial advice.
Bookkeeper Duties
Bookkeepers are in charge of financial administration. They're in charge of reconciling books of accounts, following up on past-due payments and invoice reminders, handling supplier payments, and even processing payroll. A bookkeeper rather than an accountant is typically a better choice for simple financial tasks since the former charges a lower hourly rate.
There is a long list of items that can theoretically be done, ranging from simple office procedures like opening mail to generating financial reports for the company owner, including:
- Bank account reconciliation: The bookkeeper is in charge of summarizing the company's banking and business operation. Similarly, they are in charge of comparing the bank account of the company's organization to the financial statements. They are also the one who confirms that payments have been made and that cash has been deposited into a bank account.
- Accounts payable and accounts receivable procedures: The bookkeeper takes responsibility on the accounts that the company shall receive from the customer and on the other hand, the company owes to other businesses.
- Counting stock, and so much more.
Why should I hire a bookkeeper?
- Bookkeepers have more experience in information keeping. While nonprofessionals and even novice individuals can conduct bookkeeping, it is best left to a qualified professional. This also avoids potential mistakes that may lead to fines for filing papers.
- A new bookkeeper will bring a new perspective to your business. A bookkeeper will provide you with a fresh perspective on how to best manage your budget and run your company. They will show you how to save money, give you insight into your spending, and much more.
- In the end, hiring a bookkeeper would save you money. You can avoid financial penalties by hiring a bookkeeper, particularly one who can work remotely.
- Hiring a bookkeeper helps you to devote more time to your business. You will focus more time and money on the core operations of your company when you don't have to think about arranging your own books.
AMCA as your Bookkeeper
The team is professionally trained and prepared to provide you with professional guidance that will assist you in managing the many risks that your company faces. We understand that maintaining a competitive advantage in today's challenging market climate requires clients to provide timely and reliable financial details.
AMCA looks after all of your financial needs while also ensuring that your companies strategize more effectively. You can trust our team and focus your attention on more important aspects of your company. We have a reputation in Dubai for offering high-quality accounting and bookkeeping services.