Sell hand made face masks? Run a dental office? Sell SaaS in San Francisco? Whatever business you run, you are bound to earn money and spend it. Who keeps track of it? That’s a great question. If you are running solo – it’s most likely you. Rather focus your time elsewhere? That’s where hiring a bookkeeper comes in handy. A bookkeeper’s job is to track all of your transactions accurately by maintaining all of your accounts on a monthly basis.
A Bookkeeper's Function
Bookkeeping is the process of recording daily transactions in a consistent way in order to follow proper accounting guidelines. Bookkeeping is a key component of any successful business. Some of the items a bookkeeper take care of are:
- Categorizing financial transactions
- Creating invoices
- Entering debits & credits into accounting software
- Creating & maintaining a general ledger
Maintaining a general ledger is very important for your business. A general ledger is a document in which a bookkeeper records & categorizes amounts from sales or expenses. This is business owners can see how they’re business is doing financially. Without this general ledger, the business owner would be clueless on their financial health.
You can keep a ledger on a spreadsheet or even on a piece of paper. However, most businesses use specialized accounting software. At Narwhal we use Wave Accounting for it’s ease of use and affordability. Other common accounting systems out there for small businesses are Quickbooks & Xero.
What do Bookkeeper's do All Day?
Bookkeeping involves data entry & tracking of receipts. To ensure transactions are recorded properly, they use the double-entry accounting method (otherwise known as journal entries). Don’t know what that means? If you hire a bookkeeper, you won’t have to! Bookkeepers are in charge of producing very important documents for your business:
- Income Statement (P&L): Shows your expenses & revenue
- Balance Sheet: Shows your financial position at a certain point in time
- Cash Flow Statement: Shows how your cash is trending
- Statement of Retained Earnings: Shows how your share of capital, reserves, and retained earnings have changed in a reporting period
Where to Hire a Bookkeeper?
So you’ve decided that you want to skip the stress and hassle of DIY bookkeeping. You want to hire one but unsure of the best place? You can post on job boards like Linkedin, Craigslist, or Indeed. However, without full accounting knowledge you can waste time & money by hiring bad bookkeepers. Consider outsourcing your bookkeeping to bookkeeping companies like Narwhal.
Narwhal provides expert bookkeeping services to small businesses for a flat monthly rate. There are no hidden fees and no contracts. Let us take away the stress & headache for you. In addition, we pair your financials with an in-house data analysts for free! They give you actionable data insights to pair with your financial numbers so you can make smart & informed decisions.