Part of maintaining a successful business is keeping track of all expenses, income, and transactions. Bookkeepers make sure your information is accurate and comprehensive. Here are a few of the bookkeeping services they perform so you can make informed financial decisions and strategies based on your company’s current needs.

What Does a Bookkeeper Do?

1. Categorize Transactions

Most bookkeepers use software to keep track of all payroll, expenses, and payment processor transactions. While these systems will automatically categorize each transaction, they will have to manually monitor the bookkeeping services to ensure every transaction is accounted for and categorized correctly. 

They will also have to manually enter deposits and withdrawals made outside the system, such as cash payments and handwritten checks.

2. Reconcile Bank Accounts

In addition to monitoring transactions, a bookkeeper will make sure all balances listed in the accounting software match the actual credit card, bank, and other financial accounts. Keeping a close eye on how your money moves reduces the risk of overdraft fees, fraudulent charges, or incorrectly recorded transactions.

3. Prepare Financial Statements

There are several financial documents—including profit and loss statements, cash flow statements, and balance sheets—your business will need to provide to lenders, suppliers, and partners from time to time. Having a bookkeeping service ensures the information listed is accurate and based on all available information.

4. Handle Accounts Payable & Receivable

Some bookkeepers will also help to manage your business’s bills and invoices. They’ll use software to send out invoices and estimate incoming payments to provide a calculated total for managing the company’s cash flow. They’ll also handle all bills owed by keeping up with deadlines from each vendor and submitting payments.

Ensure your business’s financial data is orderly and accurate with the help of Dianne M. Saunders, CPA. For over three decades, this skilled accountant has provided a range of accounting services, including tax preparation and bookkeeping services, to small businesses in Litchfield, CT, and surrounding areas. She is a knowledgeable professional who stays updated on all tax law changes. Call her today at (860) 567-3022 to schedule a consultation, and visit online for more information about her firm.