As a business owner, you always want to see the growth in your business. To learn how your business is growing and in which direction bookkeeping is essential. Bookkeeping helps business owners to have accurate financial statements. Bookkeeping is an overall report of any business to learn about the day-to-day transactions. Bookkeeping services help you to manage cash flow so that you understand and have an idea about the flow of funds. In order to have knowledge about your business growth, future financial planning, business expansion, etc., you can gather the needed information from bookkeeping.
It is common for business owners to assess the need for hiring professional accountants to handle their accounts. They may mistake or confuse the idea of a bookkeeper and accountant. For your information, both are not the same. They both play a different but essential role to maintain your financial health. A bookkeeper is responsible for the initial stages in the financial cycle, involving record-keeping, whereas accountants play a more analytical role, providing insights on the information compiled during bookkeeping.
Bookkeepers collect daily transaction details of your company or organization. To know in detail what a bookkeeper does and how the bookkeeping services Edmonton can be of benefit to you, we are listing some of the important functions that a bookkeeper does on a day-to-day basis.:
- Tracking Income and Expenses: Bookkeeping is the key to keep a record about how much income and expense of your business. When recording activities that bring in revenue, bookkeepers also make note of details such as sales tax and the quantity and type of product sold.
- Staying on top of receivable and payable accounts: Accounts receivable includes money that your customers owe to you for services or products sold or provided, whereas accounts payable includes the money your business owes to vendors, suppliers, and other stakeholders.
- Financial Statements preparation: The preparation of a cash flow statement ensures that you have knowledge about the income and expenses flow of money so you can easily understand how your business is doing.
Bookkeeping services in Edmonton are crucial for every small or big business across the industry. To have a transparent knowledge of how your business is doing in terms of the various profit or loss-making accounts as well as your receivable & payables, regular bookkeeping is important. Having a professional bookkeeper manage your accounting records is quite important for every business in Edmonton.