Small businesses are businesses that have less than 500 employees. As of 2018, there were approximately 30.2 million small businesses operating in the US. This tells us that they make up a significant proportion of the job market. Needless to say, small businesses are a very important sector of the economy.

Accurate bookkeeping is a central part of running a successful small business, no matter what industry it’s operating in. To ensure that it’s done right, many businesses outsource their bookkeeping operations for efficiency. As a result, the payroll & bookkeeping industry grew by 4.8% in 2018.

If you have not yet employed the services of a bookkeeping service, here are some tasks they can complete for you:

Day-to-day bookkeeping

Bookkeeping is a full-time job which many small businesses don’t have the resources to do. There are many tasks a bookkeeper needs to complete on a day-to-day basis like:

Recording all transactions: Bookkeepers need to record all financial transactions between the company that has employed their services and third parties. These transactions include inventory, asset purchases, stationery, sundries, etc; anything that holds monetary value.

Recording and tracking business sales: Sales revenue is the most important part of any business. It allows a company to pay off expenses it incurs and ‘recognize’ profit earned. Bookkeepers record sales transactions and whether or not items have been sold on credit. They must also simultaneously keep track of purchases and payments to vendors. Furthermore, funds need to be disbursed on time, so that fines or interest aren’t added to the payables.

Reporting and recording transactions in a professional manner: every business needs to have its accounts kept and transactions recorded according to a set of reporting standards. This allows them to have timely and standardized accounts. If any specific record is ever needed for legal purposes, it can easily be found and referred to.

Why do small businesses need a bookkeeper?

Small businesses often don’t have the manpower needed to complete all the tasks required. They mainly focus on their business operations to try and perfect their services and gain as many clients as possible.

Bookkeeping is also a very extensive task. No matter how small a business, they still generate a lot of financial data that needs to be recorded.  This is a full time task and small businesses don’t have the expertise required to complete the task.

Now that we’ve answered all the questions you may have on bookkeeping, visit A&B Accounting And Business Solutions in Palm Beach County. We offer the best bookkeeping services for small companies. Our experts also deal with payroll processing services and part-time controller services.