Running a small business is extremely rewarding. Working for yourself is a huge advantage. However, doing everything yourself can be a lot to handle. This is why bookkeepers are so helpful. In this video, you will learn more about what bookkeepers do for small businesses.
The first thing bookkeepers do is categorize your expenses. For taxes, the government needs to know what your business is spending money on. This is because different items are deductible at different rates. This can be confusing for a normal business owner. However, a bookkeeper will download your expenses from your bank, and categorize them for you to get you the largest deductible as possible.
A bookkeeper also creates monthly financial reports. This involves measuring all revenues and expenses which results in a profit and loss statement. This provides a great overview on the current state of your business. You can see expenses and revenues all in one place.
Finally, bookkeepers work with your accountant during tax time. The bookkeeper will send all relevant reports to the accountant who will then use these reports to file your taxes. The reports can include information about employees and payroll to name just a few. As you can see, bookkeepers take a load off your shoulders as a small business owner.