If you have been running a business for some time now, you must have hired a bookkeeping service provider at some point. Every company needs to have a trustworthy bookkeeping partner.
Having an experienced and competent financial expert working hand in hand with you can only do wonders for your company. You can determine whether the company that offers bookkeeping services is efficient by their accuracy, punctuality, and error-free record keeping.
But what are the specific tasks you can expect from a bookkeeping service provider? Here’s a list of services provided by most bookkeeping companies:
Prepare Financial Statements
A good bookkeeping service provider will prepare financial statements that include balance sheets, income statements, cash flow analysis, and other accounting reports needed for your company.
These reports give you a clear idea of where your company stands financially. This is vital for your company because you need to know about the financial health of your business to make good decisions for the future.
File Your Business Taxes
Another task they can provide is tax filing. Of course, every country requires businesses to pay taxes regardless of whether they are small or large corporations. Most bookkeeping service providers offer tax filing for partnerships, corporations, and other legal business structures under their umbrella.
In addition to federal taxes, the service provider can also take care of state and local taxes on your behalf.
Small companies don’t have a dedicated payroll department, so outsourcing the duty to a bookkeeping service provider is the best way to go.
They offer payroll services that include verifying time and attendance. They also pay rates, generate W-2 forms, prepare payroll taxes like Social Security and Medicare taxes, process direct deposits for employees, and file payroll tax returns.
General Bookkeeping Tasks
Besides specialized bookkeeping tasks, a good bookkeeping service provider can also perform general bookkeeping tasks like checking general ledger accounts, preparing bank reconciliations, reconciling accounts payable, payroll, and other transactional accounts, recording journal entries, and issuing reports that show your financial status.
Help You Prepare Financial Statements for Tax Returns
According to reports, the global accounting services market is expected to grow at a CAGR of 6 percent from 2021 and reach $687.7 billion in 2023. Bookkeeping services usually work closely with the tax department of their company to produce accurate financial statements.
It means your bookkeeping service provider can help you prepare the required financial statements for tax filings. It depends on the size of a business, but they can usually do it.
Prepare Articles of Incorporation
Bookkeeping services offer different packages depending on the needs of your company. If you are planning to incorporate your businesses, they can prepare the Articles of Incorporation for you, including the incorporators’ names, registered agents, and other essential details.
It is essential because it establishes your business officially, so you need to appoint an experienced bookkeeping service provider to do this task.
Offer Cash Flow Planning and Forecasting
The financial stability of your company lies in the ability to forecast the cash flow situation. A good bookkeeping service provider will help you plan your cash flow by providing financial statements that show operating, investing, and financing activities.
Perform Bank Account Reconciliation
If you cannot perform bank account reconciliation, you should outsource this task to the bookkeeping company. Bookkeeping services will provide accurate accounting records by comparing your cash balances with your bank’s statements.
The task can include reconciling multiple accounts like checking, savings, and money market accounts to spot discrepancies as soon as possible.
Do Your Year-end Payroll Tasks
The year-end is busy for businesses, especially those with paid employees. If you plan to save cost and time, then you should let the bookkeeping service provider take care of your payroll taxes by filing the 941 and W-2 forms before December 31.
They will also print out W-2 forms for you and submit them to the Social Security Administration before January 31 so your employees don’t have issues with their Social Security benefits the following year.