What Does A Bookkeeper Do For A Small Business?

A bookkeeper helps a small business maintain accurate and organised financial records. Their responsibilities can include recording income and expenses, reconciling bank accounts, managing invoices and bills, monitoring accounts receivable and payable, processing payroll and maintaining accounting software such as Xero. 

For a small business owner, this can remove a significant amount of financial administration from their workload. One of the most valuable tasks is keeping records current. When bookkeeping is performed regularly, the owner can see whether customers have outstanding invoices, which bills are due and how much money has moved through the business. 

Bank reconciliation also helps identify transactions that may have been recorded incorrectly or are still outstanding. A bookkeeper can also help prepare the underlying records needed for BAS reporting and provide organised information to an accountant when tax work is required. The role can vary considerably between businesses. A sole trader may only need monthly reconciliation and expense recording, while a growing business with employees may require payroll, accounts payable, accounts receivable and more frequent bookkeeping. 

Small businesses using Xero can also benefit from having a bookkeeper review automated processes and ensure transactions are allocated appropriately. Young Guns Bookkeeping provides bookkeeping support to Melbourne small businesses across these areas. 

Outsourcing bookkeeping does not mean a business owner loses control of their finances. Instead, it can give the owner more time while maintaining access to current financial information.