If you have just started in business you may ask “What does a bookkeeper do?”
A bookkeeper has two main functions –
- To administer the financial side of the business
- To record the financial transactions of the business
Many new business owners try to cover all functions of the business. However it is important to weigh up the opportunity cost – how much business or revenue could the owner generate if the time used for bookkeeping was used within the business?
A trained bookkeeper will be used to filling in forms, using accounting software such as Xero and liaising with customers, suppliers and external third parties such as accountants.
Bookkeeping hours required vary from business to business and many visit the businesses premises once a month to go through the paperwork, agree the suppliers to be paid, the customers to chase and record transactions and reconcile them.
At the end of the financial year a bookkeeper may help a business owner to prepare reports and the books for the accountant. This can cut the hours to prepare accounts and tax liabilities and therefore reduce fees.