What is included in Bookkeeping services?

Why proper bookkeeping is Important for your business

It is crucial for all businesses, big or small  to keep track of your day to day spending and business finances as a whole. This will help you to make better decisions and you will be able to see if your business is making money or losing money. 

You need to know and understand the inflow and outflow of money in your company. For you as a business owner, in order to have a better understanding of your business cash flow, you do need an experienced and qualified bookkeeper to handle your business bookkeeping affairs.

Bookkeeper and bookkeeping 

Bookkeeper and bookkeeping are a vital part of your business success and its growth. A bookkeeper is the official accounting officer of your business' financials while an accountant is your business financial strategist. A qualified registered accountant's responsibility is to prepare audits, tax planning and tax preparation for submission to SARS and offering business financial strategies, analysis and advice.

Accounting and bookkeeping

Accounting and bookkeeping services are two separate services that can be handled by a qualified registered accountant, but a qualified Bookkeeper is not able to do the job that is done by an accountant e.g audits and taxation.

Small business needs only a Bookkeeper 

But for the small businesses it is not a must to appoint an accountant because they don't come cheap, besides the finances of a small business is not as sophisticated or complex. What you need as a small business owner is a good bookkeeper to do your bookkeeping.

Why bookkeeping is Important for your business

In South Africa all businesses are required by law to keep all business financial records for at least five years. As a business owner you must furnish your bookkeeper with all financial records of your business, this makes the job of a bookkeeper easier. A good bookkeeper will help you understand how much money your business is making and how much money is owed to your business.

A good bookkeeper

And a good bookkeeper will show you how much money your business owes and will prevent you from making wrong financial decisions, even the illegal ones. They can also help you monitor the inflow and outflow of money in your business and identify sources of income and sources of leakages.

What is accounting? 

Accounting is the process of tracking and recording the income and expenses of the company. The responsibility of an accountant is to come up with financial strategies, financial advice, and implementation of such strategies amidst knowing the business or company's financial position.

Bookkeeping services

Bookkeeping is the process of keeping records of financial transactions and preparing financial statements, such as balance sheets and income statements. In everyday business operations, a bookkeeper would make sure that invoices are filed, and expenses correctly allocated in a chart of accounts and handling payroll.All these duties can be done using online accounting software e.g QuickBooks Online, Xero and Sage Pastel Accounting.

Online accounting software 

These online accounting software have become very popular because of their simplicity, efficiency and convenience. You no longer need to go to the office any more, it gives you the freedom and flexibility to work remotely.

Here are some of the records that you should accurately keep: bank statements, payroll and employees taxes, profit and loss statements, sales and purchases, expenses, cash flow analysis, accounts receivable and accounts payable. Accounts payable is an amount owed to a supplier or credit for goods or services.

Rose Tinted Glasses with Olivia Sambo, Business and bookkeeping Podcast

Listen to Rose Tinted Glasses for our daily podcasts for tips on how to run your business successfully and why it is important that every business must have a bookkeeper. We discuss the roles, duties and responsibility of a bookkeeper, and the importance of a good bookkeeping.