What does a bookkeeper do?
A bookkeeper is an essential part of most businesses, and yet many people still confuse them with accountants. In reality, the role differs significantly. Bookkeeping is focused on accurately recording financial data, whereas accounting involves reporting on the data.
More specifically, a bookkeeper will record financial transactions for a business. They will update statements and check past financial records to make sure they are accurate and typically work with a range of different companies, which may include local businesses, schools, charities and larger organisations.
The recurring tasks of bookkeeping
Someone in this role will routinely:
– Use accounting software and spreadsheets to keep an accurate record of company spending and employee expenses
– Receive and make a note of any cheques and cash that go through the business
– Check all figures to make sure that they are accurate
– Input new information into the relevant accounting software
– Make a note of and report on any figures that are inaccurate
In general, the records that they work with include receipts (records of incoming payments), expenditure (money that the business has spent), accounts payable (bills that still need to be paid) and accounts receivable (including invoices and what other businesses owe the company).
Different types of bookkeepers
Some companies employ a full-time bookkeeper who maintains the business’ books, while others may be engaged to deal with specific tasks. The latter tend to work for more than one business.
Most bookkeepers today use accounting software to keep up to date with financial information. This means that most of the information is stored and managed electronically which improves accuracy but requires that the data is secure from scammers and hackers.
In the majority of cases, the bookkeeper will be in regular contact with the business via email and meetings, making sure that the business owners fully understand their finances.
As firms increasingly focus upon efficiency, solutions such as Soldo’s prepaid business Mastercards, employee expense app and finance team dashboard are automating repetitive, time-consuming tasks, freeing valuable staff time to focus on activities with greater strategic importance.
Corporate bookkeepers similarly benefit from this enhanced automation, with Soldo’s solutions eliminating the need for them to manually enter staff expenses into a finance system.
Benefits of using a bookkeeper
The main benefit of using the services of a bookkeeper is that you will be kept aware of the state of your businesses finances. This will make it far easier for you to manage and project cash flow and can assist you in identifying ways in which to save money.
It also means that there will be a full record of receipts. It is very easy for staff out in the field to mislay hard copy receipts, resulting in incomplete accounting information and persistent queries and delays relating to expense payment.
Soldo’s solutions eradicate the issue of lost receipts. Staff simply use our app to scan in receipt images which are made available to bookkeepers and other finance team members via our dashboard.
A further benefit is that cash advances and petty cash are easier to manage. This is particularly useful as many businesses struggle to keep track of petty cash payments and cash advances.
These issues can be further mitigated through the use of our prepaid company card. Finance staff on a whole can simply top up card balances in real time using our dashboard, with the relevant transactional information recorded for subsequent analysis and reporting.
A bookkeeper can also help to make sense of complicated and confusing data. Most businesses without a bookkeeper only get to see limited snapshots of their expenses, but having one who can present data accurately and in context will make it easier for you to see the bigger picture. It also means you can analyse data by month or department, making it easier to spot any discrepancies.
Firms using the Soldo solution benefit from extensive reporting capabilities and the integration of transactional expense data with other major accounting platforms including Sage, Quickbooks and Xero. This allows all finance staff to focus on analytical activity, using the data to inform refinements to expense policies and other financial strategies.
Ultimately, a bookkeeper will keep a record of your business finances, meaning that you can focus on strategic priorities. Using our solutions further frees them and other finance team members to focus on higher value activity, eradicating the unnecessary cost of outdated manual expense recording and reporting.
Click here to learn more about our prepaid cards for business and understand the solutions we offer.