Information Needed to Hire a Bookkeeper
When you hire a bookkeeper, they need specific information to keep accurate financial records. Hiring a bookkeeper for your small business is one of the best ways to know and track your numbers. Having accurate financials is essential to maximizing the value of a business.
As a bookkeeper, Peak Bookkeeping is responsible for keeping accurate financial records for your business. We need to collect specific information to perform our job effectively. Additionally, we provide financial coaching through bi-weekly calls. Knowing your numbers can help empower your financial decision-making. Get started with your Peak Bookkeeping coach today by scheduling a consultation. As an added bonus, get your first month free!
Information a Bookkeeper at Peak Needs
Once you hire a bookkeeper they need certain information about your business. In this guide, we outline the information Peak Bookkeeping collects. In addition, we provide tips on how to organize it efficiently.
Collect transaction information
The first step in bookkeeping is collecting transaction information. Transactions are the financial activities of a business, including sales, purchases, and expenses. To collect transaction information, Peak Bookkeeping needs to keep track of:
- Sales invoices: A sales invoice is a document that outlines the products or services sold to a customer, the amount due, and the payment terms. To collect this information, we need to create and file copies of sales invoices.
- Purchase invoices: A purchase invoice is a document that outlines the products or services purchased by the business, the amount due, and the payment terms. To collect this information, we need to request and file copies of purchase invoices.
- Bank statements: A bank statement is a monthly record of the business’s bank transactions, including deposits, withdrawals, and fees. To collect this information, we need to request and file copies of bank statements.
- Credit card statements: A credit card statement is a monthly record of the business’s credit card transactions, including purchases, payments, and fees. To collect this information, we need to request and file copies of credit card statements.
Record transaction information
The next step to hire a bookkeeper is to ensure they record transaction information effectively. Once Peak Bookkeeping has collected transaction information, we need to record it accurately in the business’s accounting system. An accounting system is a software program that tracks financial transactions and generates reports. To record transaction information we do the following:
- Enter sales invoices: Enter sales invoices into the accounting system to record the amount owed by customers and track payments.
- Enter purchase invoices: Enter purchase invoices into the accounting system to record the amount owed to suppliers and track payments.
- Reconcile bank and credit card statements: Compare the transactions recorded in the accounting system to the transactions on bank and credit card statements to ensure accuracy.
- Record expenses: Record business expenses, such as rent, utilities, and office supplies, in the accounting system to track spending and deduct them from taxes.
Create financial reports
Once Peak Bookkeeping has recorded transaction information in the accounting system, we can use the data to create financial reports. Financial reports provide insights into the financial health of a business and help business owners make informed decisions. In addition, the bookkeeping coach will review these to gain financial insights into your business operations. Through your bi-weekly financial coaching session, the bookkeeper will review these with you and how to make improvements. Start today and get your first month free! Schedule a consultation to hire a bookkeeper at Peak Bookkeeping by clicking the link below.
To create financial reports, we take the following steps:
- Generate income statements: An income statement summarizes the business’s revenue, expenses, and net income or loss for a specific period. To generate an income statement, we need to use the data recorded in the accounting system.
- Generate balance sheets: A balance sheet summarizes the business’s assets, liabilities, and equity at a specific point in time. To generate a balance sheet, we need to use the data recorded in the accounting system.
- Generate cash flow statements: A cash flow statement summarizes the business’s cash inflows and outflows for a specific period. To generate a cash flow statement, we need to use the data recorded in the accounting system.
Tips for organizing information efficiently
Here are some tips from Peak Bookkeeping to organize financial information:
- Use a filing system: Create a filing system for transaction information, such as sales and purchase invoices, bank and credit card statements, and receipts. Organize the files by date and type of transaction to make it easier to find information.
- Use accounting software: Use accounting software to record transaction information and generate financial reports. Accounting software automates many bookkeeping tasks and saves time.
- Keep track of deadlines: Keep track of deadlines for filing taxes, submitting financial reports, and paying bills.
- Use a calendar: regularly schedule time to track and update your financials. The key to maximizing the value of a business is having up-to-date and accurate financials. In addition, it will help as your bi-weekly financial coach reviews your business operations and financials with you.
Conclusion
When you hire a bookkeeper it is important to have well-organized and accurate financial records. This helps a bookkeeper, such as Peak Bookkeeping, to create accurate financial reports that help you make informed decisions to maximize the value of your business.
Peak Bookkeeping is excited to provide you with expert bookkeeping to help you gain insight into your business operations and make improvements! Start today and get your first month of bookkeeping free by scheduling a consultation.
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