Small business owners wear many hats. One day, you’re the only manager on duty. In the evenings, you’re the cleanup crew. You’re the entire customer service department on Friday. The marketing department on Sundays. And sometimes, you’re all of the above within the hour. You may not have a massive list of daily income and expenses, so it’s easy to take on the bookkeeper’s role only when necessary. In many small businesses, accounting and bookkeeping practices get pushed to the back burner so you’re not alone if this has happened already in your small business.
As the accounting and bookkeeping tasks start piling up, you may feel part-time or perhaps full-time help is needed in getting your business organized.
First things first. Let’s look at what a Kelowna bookkeeper actual does for small businesses.
What Is a Bookkeeper?
Bookkeeping responsibilities include:
- Maintaining the general ledger. A Kelowna bookkeeper’s biggest responsibility because the general ledger tracks income and expenses across all areas of the operation.
- Creating invoices. Bookkeepers also take charge of creating invoices and managing the billing process, which includes following up with late paying customers.
- Balancing subsidiaries. Subsidiary ledgers are designed to provide more in-depth detail about certain categories of transactions, such as applicable customer discounts or labor expenses.
- Completing payroll. If you’re paying anyone for any work they’re doing for your business, you need to have a consistent payroll system. Without it, your workers don’t get paid correctly or on time which can significantly affect team morale.
At Kerr & Company, Kelowna Chartered Accountants, we can also prepare financial statements, analyze operating expenses, prepare taxes, and participated in making long-term financial and planning decisions as additional services to the bookkeeping duties.
Does your business actually need a Kelowna bookkeeper?
Every small business needs someone tasked with tracking financial transactions. Without a general ledger, you won’t have insight into profitability. The lack of a consistent invoicing process will negatively affect your cash flow. Without payroll, your employees go unpaid.
Entrepreneurs handle most of these tasks themselves and can for a long time without needing assistance. Not until some of the following situations occur, does one think about enlisting back up in the bookkeeping area:
- You’re getting behind in daily operations. As small business owners are pulled in all directions, you could soon feel overwhelmed by everything on your plate. As the leader in the business, your time may be better spent with customers, new marketing strategies, new hires, and expansion. This is a great time to consider not only a bookkeeper but an accountant as well to oversee the financial side of the business.
- Finances are getting too complex. If you find yourself in this situation, it typically means that you’ve found success. You’re attracting more customers, investing in more resources, expanding the business and hiring more employees. Along with these changes, your finances will become considerably more complex. Eventually, you may not be able to keep up. Bringing in a bookkeeper to assist you could free up your time to keep building your business to the next level of success with less stressing over financials.
- Payroll is becoming a headache. You must stay on top on the payroll. Your employees depend on their paycheque and will not put up with missed or late paydays. Employees will leave, costing you more in hiring costs. Don’t let payroll issues get out of hand. Hire a Kelowna bookkeeper to establish a consistent process to maintain control.
- Bills are left unpaid. Utilities, vendors, contractors and other bills need to be paid or your working relationship with these suppliers could be affected. In most cases, a missed payment is easy to fix but if it’s happening often, this could be a symptom of bigger business issues. A bookkeeper watches these bills and keeps payments on time since they’re knowledgeable of the business’ financials as a whole.
- Your invoice process needs consistency. Invoicing is how your business brings in the money. A consistent invoicing process means invoices are sent out on time, resulting in more payments coming in one time. A revenue stream can collapse quickly without a process in place. If you’re noticing a problem getting invoices out and payments coming in, a bookkeeper can help regain control and streamline the system.
If you’re feeling overwhelmed with too many responsibilities, let us at Kerr & Company, your Kelowna bookkeepers, assist you with your bookkeeping needs. As mentioned, we are chartered accountants as well and can assist with more financial tasks if ever needed. We bring over 15 years of experience and bookkeeping knowledge to a variety of businesses in the Kelowna and Vancouver area, and would love to help your business too, no matter what the size. Contact us to get started!