How do bookkeepers work, and why do you need one?

If you are a first-time entrepreneur, there are a few questions that keep your brain jumbled every time and keep you up at night. “Do investors expect me to come with a tie in meetings?”, “Are standing desks having a worth? “While knowing the answers, at really helpful, the question of “what do bookkeepers do?” is surely the most important question that would be coming into your mind.

If you are a puzzled entrepreneur who has set up in Singapore and is confused with the role and significance of a bookkeeper to your business, here are a few points for you.

These points will help you to be clear with your question regarding a bookkeeper.

  • The bookkeeping basics-

In simple terms, bookkeepers are professionals who record and manage all of your business’s financial transactions. They keep track of all information and ensure that your financial records are simply organized and complete. The job isn’t restricted to this, they also look after the level of accuracy, which is a must.

So, bookkeepers are similar to spell check for your finances as they see everything. End your search for efficient Bookkeeping Singapore.

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  • A day in a life of a bookkeeper-

You must have understood that bookkeepers are like the providers of a snapshot of finances in your business. But to carry out this function, they need to go through a few important activities in their daily lives-

  1. Reconcile your bank accounts

Reconciliation is perhaps the most important work of a bookkeeper. As so much money comes and goes out of the bank, chances are high to get a few things slipped off through the cracks. To prevent these blunders from occurring, bookkeepers correlate listed transactions against monthly statements. This is done from external sources like credit card companies, banks, or some other financial institutions to ensure that all the figures are correct and are in agreement. So, the bookkeeper keeps a check to make sure that the money going from an account matches the actual money spent.

  1. Organize transactions

All the transactions are brought in through your accounting system’s bank feed. A bank feed is a list of all the transactions in your account. It’s a bookkeeper who has to keep these transactions organized way. For instance, a box of pens would be categorized as office expenses whereas the plane ticket would be categorized as a travel expense.

  1. Prepare key financial statements

Whether you are creating a budget or preparing a meeting with investors, you will need key financial statements on a traditional basis. The largely significant of these monetary statements are-

  • Cash flow statement
  • Balance sheet
  • Income Statement
  1. Take care of bills and invoices

This includes managing accounts receivable and accounts payable. Both of these works ensure that the customers are actually paying you on time and your bills are also taken care of, which is also known as cash flow management.

At Timcole, apart from getting bookkeeping helping hand, you can similarly get assistance in getting your Singapore employment pass.