What is a bookkeeper all about?
As a business owner, you probably would like to spend your time growing and connecting with customers- not compiling financial statements. The roles of a bookkeeper complement your accountant's work. Rather than spending $$$ to have an accountant reconcile a whole year of accounts, you can up-keep your accounts on a monthly basis. The bookkeeper is generally responsible for overseeing the first six steps of the Accounting Cycle, while the last two are typically taken care of by an accountant.
A Bookkeeper is responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, invoices, and payments. They will record financial data into general ledgers, which are used to produce the balance sheet and income statement. These reports give you a for-cast of your equity on a monthly basis allowing you to make more cost-effective decisions throughout the year.
At tax time ever year, IRS wants to know how the business is spending money. They want to see the breakdown of how much a business spends in each category. The IRS will ask for the dollar amount for each of those categories, and it's important for business owners to be specific and thorough in their bookkeeping. This will allow you to effectively maximize your tax deductions.
