Bookkeeper oversees financial data maintaining financial transactions by establishing accounts; posting transactions; ensure legal requirements compliance.
A Bookkeeper oversees financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, and daily financial entries and reconciliations. The Bookkeeper performs daily accounting tasks such as monthly financial reporting, general ledger entries, and record payments and adjustments. Additionally, many Bookkeepers in Miami also assist with basic HR duties like new hire documents, compliance, and temporary disability insurance and workers’ compensation filings, making them an indispensable part of an organization’s fiscal fitness.
As the business owner, if you don’t understand the different types of “accounts” your Bookkeeper uses to organize your finances, measuring the success (or failure) of your efforts will be futile.
Bookkeeper oversees financial data financial transactions, maintain financial records, fact checks financial data, and update financial statements. Bookkeepers ensure accounts are current and accurate, using specialized software, spreadsheets, and other tools to track and manage data. Some Bookkeepers track all income and expenditures for a company while others may work for larger organizations on specific projects and accounts, or particular departments.
Here are 10 basic types of bookkeeping services in Miami accounts for a small business:
- It doesn’t get more basic than this. All your business transactions pass through the Cash account, which is so important that often bookkeepers use two journals, Cash Receipts, And Cash Disbursements, to track the activity.
- Accounts Receivable. If your company sells products or services and doesn’t collect payment immediately, you have “receivables,” or money due from customers. You must track Accounts Receivable and keep it up to date so that you send timely and accurate bills or invoices.
- Unsold products are like money sitting on a shelf and must be carefully accounted for and tracked. The numbers in your books should be periodically tested by doing physical counts of inventory on hand.
- Accounts Payable. No one likes to send money out of the business, but a clear view of everything via your Accounts Payable makes it a little less painful. Concise bookkeeping helps assure timely payments and avoid paying someone twice! Paying bills early can also qualify your business for discounts.
- Loans Payable. If you’ve borrowed money to buy equipment, vehicles, furniture, or other items for your business, this account tracks payments and due dates.
- The Sales account tracks all incoming revenue from what you sell. Recording sales in a timely and accurate manner is critical to knowing where your business stands.
- The Purchases Account tracks any raw materials or finished goods that you buy for your business. It’s a key component of calculating “Cost of Goods Sold” (COGS), which you subtract from Sales to find your company’s gross profit.
- Payroll Expenses. For many businesses, payroll expenses can be the biggest cost of all. Keeping this account accurate and up to date is essential for meeting tax and other government reporting requirements. Shirking those responsibilities will put you in serious hot water.
- Owners Equity. This account has a nice ring to it. It tracks the amount an owner (or owners) puts into the business. Also referred to as net assets, owners’ equity reflects the amount of money an owner has once liabilities are subtracted from assets.
- Retained Earnings. The Retained Earnings account tracks any company profits that are reinvested in the business and are not paid out to the owners. Retained earnings are cumulative, which means they appear as a running total of money that has been retained since the company started. Managing this account doesn’t take a lot of time and is important to investors and lenders who want to track how the company has performed over time.
Bookkeeper oversees financial data. Many business owners think bookkeeping is a dreaded chore, but if you understand and effectively use the data your bookkeeper collects, bookkeeping can be your best ally.
Bookkeeper Job Responsibilities:
- Maintains records of financial transactions by establishing accounts; posting transactions; ensure legal requirements compliance.
- Develops system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.
- Maintains subsidiary accounts by verifying, allocating, and posting transactions.
- Balances subsidiary accounts by reconciling entries.
- Maintains general ledger by transferring subsidiary account summaries.
- Balances general ledger by preparing a trial balance; reconciling entries.
- Maintains historical records by filing documents.
- Prepares financial reports by collecting, analyzing, and summarizing account information and trends.
- Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.
- Contributes to team effort by accomplishing related results as needed.
Bookkeeper Qualifications and Skills:
- Developing Standards
- Analyzing Information
- Dealing with Complexity
- Reporting Research Results
- Data Entry Skills
- SFAS Rules
- Attention to Detail
Virtual Bookkeeper oversees financial data that connects with many businesses seeking help and advice about their bookkeeping. A common issue between them is they have learned a valuable lesson and should have hired an experienced bookkeeper.
The two most common reasons clients come to us for Miami Bookkeeper Services after learning a valuable lesson are:
the client does the books on their own and made mistakes that cost them time and money they thought a cheap data entry person was enough to do the books
The main reason is the client does their bookkeeping which results in misclassifications and errors. They now have to hire a company to clean everything up. This results in unnecessary time and monies spent, delayed filing of tax returns, and a chance the books are wrong.
The second reason is that the client may have hired a data entry person assuming they can fulfill that role at a cheaper rate. Bookkeeping is more than just data entry. There are rules and guidelines along with knowing the software to better streamline and utilize everything QuickBooks has to offer.
Hire an Experienced Virtual Bookkeeper
Take these valuable lessons from us because hiring an experienced Bookkeeper oversees financial data and competent bookkeeper is essential to ensuring an accurate set of books. The SBA also has information on how to become a Bookkeeper.
Virtual Bookkeeper Services
Compiled Financial Statements Differences Between Compiled, Reviewed, and Audited Financials is the level of assurance provided by the CPA in the Auditors Report.
20-Factor Test to Determine Independent Contractor Status. Worker misclassification is a perennial issue for the Accountants and IRS.
Accountants See Trend in Late Payments when economic hard times hit in 2020. Companies felt pressure to improve working capital so they held on to cash