What Is Included in Bookkeeping Services?

Running a business can feel like flying a plane in a storm. You're constantly battling turbulence like unpredictable cash flow, rising costs, and that pesky, never-ending paperwork. Fortunately, you don't have to face these challenges alone. Hiring a bookkeeper can help lighten your load and get your business back on course. With their support, you can stay organized, calm the storm, and even get ahead. But what exactly do bookkeepers do to help? Let's find out what is included in bookkeeping services to understand better the benefits of hiring a bookkeeper.  

Haven's bookkeeping and accounting services for small businesses can help you learn what is included in bookkeeping services and how they can help your business. 

What is Included in Bookkeeping Services?

Bookkeeping services are the process by which a business keeps records of its income and expenses through an accounting system, usually an accounting software platform. Bookkeepers can help you track down money you owe to other organizations and funds owed to your company to achieve the most accurate financial record. 

This can give you an accurate depiction of your company’s health. Bookkeeping services center on day-to-day financial management. These include recording transactions, managing your general ledger, and fulfilling tax and regulatory requirements.

Get to Know Your Finances: Recording Financial Transactions

Tracking money coming in and going out is the most basic bookkeeping task but also the most important. Bookkeepers categorize income and expenses so you know exactly how much cash flows into your business, who it’s coming from, what you’re spending money on, how much you’re spending, and how often. They update your financial records on a regular basis, ensuring they’re always accurate.  Accurate financial records give you a clear picture of your business’s health. 

Play a Game of Match: Bank and Credit Card Reconciliation 

Remember playing matching card games like Memory as a kid? Reconciling bank account and credit card statements is the business equivalent. Bookkeepers ensure the income and expenses on your bank statements match the ones on your credit card transactions. They catch any discrepancies as soon as they occur, enabling a fast resolution and preventing additional errors. 

Keep the Cash Flowing: Managing Accounts Payable and Receivable 

Everybody loves payday (cha-ching!). And everybody hates it when payday comes late (womp, womp). Your bookkeeper manages accounts payable (AP) to ensure vendor bills are paid on time, and they monitor accounts receivable (AR) to ensure your clients pay your invoices punctually. This way, bookkeepers improve vendor relationships and keep your business profitable. 

Stay Compliant: Payroll Processing 

When you hire employees, you must do more than just pay them. In addition to calculating wages, you’re also responsible for crunching the numbers for deductions and taxes. Bookkeepers take this work off your plate by processing payroll. They also ensure you comply with employment laws. 

Know Your Numbers: Financial Reporting 

Financial reports involve more than basic Excel spreadsheets. Bookkeepers prepare profit and loss (P&L) statements, balance sheets, and cash flow statements. These records are essential for financial planning and forecasting. They also serve as the basis for monthly and quarterly financial analyses. By enabling regular reviews, bookkeepers help with the strategic decision-making that grows your business. 

Get Organized: Tax Preparation and Filing Support 

Bookkeepers don’t file your taxes (that’s an accountant’s domain). But they do organize your tax documents, protecting you from panicked scrambling every April. They make sure your accountant has all the info they need to file your return accurately, leverage tax breaks, and keep the IRS happy. 

Follow the Money: Expense and Budget Management 

Hosting your website on a particular domain and providing employees with Microsoft Office and housing your customer relationship management (CRM) with a specific provider. All these tools cost money and the expenses can add up quickly. Bookkeepers track all operational costs so you know exactly where your money is going and when. This ensures you can follow your financial plan, manage your budget, adjust when needed, and plan for the future. 

Keep Track of What You Have: Inventory and Asset Management 

In addition to managing daily tasks, bookkeepers can monitor your stock levels and fixed assets. They track asset depreciation and amortization to calculate their value and associated costs. 

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How a Bookkeeping Service Benefits Your Business

Managing invoices, expenses, and payroll can become overwhelming without the right systems. Professional bookkeepers bring expertise and tools, such as cloud-based software, to streamline these processes. 

70% of CFOs rely on Excel for financial budgeting and forecasting, highlighting the need for modernization. Modern bookkeeping services automate tasks like invoicing and expense tracking, saving time and reducing errors, allowing you to focus more on business growth.

1. Tax Compliance: Optimize Deductions, Avoid Penalties, and Reduce Stress

Navigating tax season can be daunting, but accounting services make it manageable. With tax laws continually evolving, staying compliant is essential. A professional bookkeeper ensures you meet deadlines and avoid penalties while identifying potential deductions and credits. 

Interestingly, 71% of small companies outsource their tax preparation, underscoring the value of expert assistance. Experts can optimize your tax strategy, ensuring compliance and maximizing savings.

2. Cash Flow Management: Avoid Business Failure with the Help of Bookkeeping Services

Cash flow is essential for your business's health. Alarmingly, 82% of business failures are due to poor cash flow management. 

Bookkeeping services clarify your income and expenses, helping you avoid shortages and plan for significant investments. Virtual bookkeeping services have become increasingly popular, offering high-level financial oversight without the cost of a full-time hire.

3. Business Growth Insights: How Bookkeeping Can Help Your Company Scale

Small business bookkeeping and accounting aren't just about record-keeping; they're catalysts for growth. Professional bookkeepers and accountants offer insights that transform data into actionable strategies, from pricing adjustments to expansion plans. 

Studies indicate that businesses utilizing external financial advice experience an average 11.5% increase in additional revenues.

4. Peace of Mind: How Bookkeeping Services Help You Focus on Your Business Instead of Finances

Entrusting your finances to experts alleviates concerns about missed deductions, inaccurate records, or unexpected audits. Nearly 40% of CFOs do not entirely trust the accuracy of their organization's financial data. Outsourcing bookkeeping functions enhances accuracy and frees up time and mental energy, enabling you to focus on innovation, marketing, and customer engagement. 

Haven: Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

What is The Difference Between Accounting and Bookkeeping?

When you're running a startup or small business, it’s easy to confuse bookkeeping and accounting. They both deal with money, right? But they play very different roles in your financial toolkit, and understanding the difference can save you headaches (and money). 

Bookkeeping: The Day-to-Day Numbers 

Think of bookkeeping as the foundation. Bookkeepers are responsible for recording all the day-to-day transactions: sales, purchases, receipts, and payments. They're entering data into your accounting software, tracking expenses, and ensuring every dirham or dollar is in the right place.

Bookkeeping doesn’t typically require a degree or certification, but it does require attention to detail. Clean, accurate books are essential because they feed directly into what your accountant will later review.

Accounting: The Big Picture

Now, accounting takes all that data and turns it into something meaningful. Accountants analyse, interpret, and report on your financials. They check your books for accuracy, make necessary adjustments, and help you understand what the numbers mean for your business.

They’re the ones who’ll guide you on budgeting, taxes, profitability, and whether you can afford that new hire. Accountants often hold certifications like CPA (or equivalent) and typically earn more because their job requires a broader and deeper skill set.

In short: 

• Bookkeepers handle the inputs: recording transactions, organising receipts, and keeping the books tidy.

• Accounting handles the outputs: interpreting that data, offering financial insights, and helping you make smarter decisions. 

Both roles are crucial. Without good bookkeeping, your accountant is flying blind. You might be flying into financial trouble without realising it, without a good accountant.

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Choosing The Right Bookkeeping Service for Your Business?

Bookkeeping isn’t one-size-fits-all. Every industry has its own:

• Unique set of regulations
• Compliance issues
• Operational challenges

An experienced bookkeeper who understands your industry and its nuances will ensure accurate financial records and help you avoid costly mistakes. 

They’ll also be able to provide you with strategic guidance to help you plan for growth. For example, a bookkeeper with e-commerce experience will be familiar with sales tax regulations that vary by state and how to manage inventory accounting.

The Value of Industry-Specific Financial Expertise

In contrast, one with expertise in the food service industry will understand the importance of tracking food and labor costs to help boost your profitability. Look for a bookkeeper who has worked with businesses of your size in your sector. This will help ensure they understand your operational challenges and can help you navigate them.

Choose Between Local and Virtual Support

Thanks to modern tools like QuickBooks Online, Zoom, and Slack, you don’t need to limit your search to local professionals. That said, whether you go virtual or in-person, your bookkeeper should be responsive and well-versed in the financial laws that apply to your region or country. Local insight can be valuable regarding compliance, reporting, or tax deadlines. 

Review Qualifications, Credentials, and Reputation

While a bookkeeper doesn’t need to be a CPA, certifications such as those from the National Association of Certified Public Bookkeepers or the American Institute of Professional Bookkeepers show a commitment to professionalism. Ask for client references and dig into reviews or testimonials. After all, this person will have access to all your financial records, so it’s worth doing your homework.

Clarify Software Compatibility

Ensure your bookkeeper is fluent in the accounting software your business uses—or is willing to learn. Ask if they’ll use your current system or bring in their own. Either way, you should always have full administrative access to your financial data. Transparency and control over your records are non-negotiable.

Don’t Overlook Tax Knowledge

Bookkeepers aren’t tax advisors; they should understand how everyday decisions affect your tax position. A good bookkeeper will stay on top of relevant tax changes and help you stay organised throughout the year, making life easier come tax season and saving you money through more thoughtful planning.

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Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When you're busy building your business, the last thing you want to worry about is whether your bookkeeping is done correctly. You can avoid this stress by hiring an expert to manage your books, giving you more time to focus on your business.  

Bookkeepers help you organize your finances to understand your financial position and make informed decisions about your business. They also ensure that your books are accurate and up to date well before tax season, so you won’t have to panic when it’s time to file your business taxes. 

What Does a Bookkeeper Do? 

A bookkeeping professional’s primary role is to record and organize financial transactions. Bookkeepers help you keep track of your income and expenses to get a clear picture of your business’s economic health. 

They also ensure your books are accurate and up to date for tax season. While accountants typically focus on taxes and financial reporting, bookkeepers manage your business’s financial records throughout the year. The more organized your finances are, the easier an accountant’s job will be when it’s time to file your business’s taxes.

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