Bookkeeper /ˈbo͝o(k)ˌkēpər/ noun a person whose job is to keep records of the financial affairs of a business. “The business had grown enough to justify hiring a bookkeeper”
Keeping the books. Controlling the finances. Knowing about the money side of the business. Everybody either has or should have someone like this in their business.
We’ve talked about the different financial roles in a business in this space before. But the role of the bookkeeper (as opposed to the accountant or CPA or CFO) has its own set of things to consider in helping keep the business financially healthy.
With that said, here are few “best practices” for bookkeepers from my perspective:
- Keep business and personal finances separate.
- Track cash and know your cash flow.
- Keep track of all expenses.
- Create and follow a budget to ensure payments are received and made on time.
- Maintain accurate records.
- Choose your accounting method and stick with it.
- Use credible accounting software.
- Work with the rest of the financial team (CPA, accountant) to ensure compliance with US GAAP rules and regulations.
- Build an audit trail.
- Create timely reports.
This list is just a starting place. However, it highlights the most important things that a bookkeeper must keep in mind when managing a company’s finances.
We love numbers. If you are looking for help with your finances, call or write to us. TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the board room.
*Photos courtesy of Unsplash (photographers Northfolk and Visual Stores Michelle