03 Aug 6 Business Information Your Bookkeeper Needs
The bookkeepers can do their job right if you let them access your financial information. This is why it is important that you hire a bookkeeper who you can trust. Bookkeeping is a crucial and sensitive activity so hiring one to do your business’s books is also crucial.
Once you’ve established that your bookkeeper is trustworthy, here are some business information your bookkeeper needs:
Your bookkeeper will need access to your bank account information—but no, he won’t need the actual access to manage your bank account. The bookkeeper just needs the number on paper, not the actual funds. You can give the bookkeeper limited access to your online banking information. This means that he can log in to your online banking but not make changes to it.
Assets & liabilities
Your bookkeeper really needs to know the assets you own and the money you owe. Assets include properties, equipment and buildings that you or the company owns. Liabilities include credit card bills, loans, and other debts. You can either give your bookkeeper a statement of assets and liabilities or give him access to the online information. Assets and liabilities are important information that should be reflected in the books. These are critical information needed if and when the business will be valued.
What kind of business are you running? Is it a sole proprietorship or a limited liability corporation? Or are you a board member of a corporation? The bookkeeper needs to know what kind of business you own in order to properly manage the books. Every business type has a different accounting procedure. If the company has a number of owners, the bookkeeper will need the specific shares for each owner. If you want the bookkeeper to keep accurate records of the business’s equity accounts, then he needs access to the business information.
Keep all receipts related to the business—all expenses and sales. Turn these over to the bookkeeper, or at least give him copies of the receipts. The bookkeeper knows better what to do with the receipts, just keep all of them. Receipts will greatly help the bookkeeper in terms of classifying expenses, especially for tax purposes.
When you have employees, the bookkeeper will need access to their payrolls, too. The payroll system carries with it financial branches like taxes, retirement fund and benefits. Bookkeepers need to manage those as well and then reflect them in the company’s overall financial statements. The bookkeeper may also be tasked at making monthly or quarterly or annual payroll reports.
Uncle Sam requires you and your business to pay taxes. So allow bookkeepers to take tabs of your tax obligations, tax returns, and tax payments. Most bookkeepers have the capability to prepare tax accounts and tax returns.
When you give the bookkeeper complete financial information, you expect a better financial report. And when the financial report is meticulously made, the bookkeeper will be able to help you manage your finances better. So keep the bookkeeper well informed in order to keep your books in order.
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