As an integral part of any organization, bookkeeping, accounting, and tax preparation are crucial to manage. Professional bookkeepers or accountants help their clients or the organization understand their financial data in a way that informs them and helps them make mindful decisions for the growth of the business.

Opting these services for your business growth is essential from the first day of starting your business to maintain accurate financial records and reconcile and run the crucial reports at the end of the month. Thus, let us explore this guide in detail, understanding everything about tax and bookkeeping services for your business and the benefits of opting for these services.

What are Tax Advisory Services?

Tax advisory services help or guide a tax-paying entity such as a person, company, business, trust, etc., with a complex financial circumstance, minimizing the amount of taxes payable to the taxing authorities and also helping to maximize the tax returns.

The advice and services provided by a tax advisor vary depending on the tax payer’s situation of the taxpayer. An individual taxpayer may seek advice for retirement plans. Meanwhile, an entrepreneur may be looking to set up a small business. Even the tax requirements vary according to the business you run.

The dealings between a tax consultant and a company seeking to merge with or acquire another business may be different from his or her business relationship with an estate executor seeking to minimize taxes on land.

What does a Bookkeeping Service do?

A bookkeeper is responsible for providing accurate and up-to-date financial reports to the accountant to ensure they prepare the annual financial reports and tax filing for your business.

Business owners use these reports to analyses financial health and by stakeholders such as managers to make well-informed decisions. Let’s take a detailed overview of what a bookkeeper does in the business.

1. Data Entry

Data entry or recording of your business’s financial transactions is used to maintain a record of your business’s receivable and payable income. This is the basis of bookkeeping and accounting services, as you must prepare accurate financial statements. This is because accurate financial records will help you, as a business owner, and other stakeholders, get a true and fair view of your business’s performance.

2. Bank Reconciliation

Bank reconciliation compares the financial transactions recorded in your accounts with those shown on your bank statements. The purpose behind conducting a bank reconciliation is that the financial transactions recorded in your accounts should match those shown on the bank statements. Bank reconciliation is important for your business because it helps find and correct data entry errors or overlooked transactions.

3. Accounts Receivable, Accounts Payable and Payroll

A bookkeeper is responsible for ensuring that all customers have invoices and are paid on time. They also need to ensure that no bills are outstanding and all suppliers are paid on time, without running out of cash, which helps ensure that deliveries or supplies are purchased, sent, and received on time.

In addition to maintaining accounts payable and accounts receivable, a professional bookkeeper also provides payroll services.

4. Monthly financial reports

There are different financial reports that the bookkeeper prepares to manage the monthly finances and track the business performance. These financial reports include: Balance Sheet, Profit and Loss, Cash Flow Statement, Accounts Receivable, and Accounts Payable.

If such reports are not maintained correctly by the bookkeeper, it can affect your business forecasts, customer payment terms, inflation expenses.

How Tax and Bookkeeping Services Benefits Your Business?

One of the most important decisions you will make as a business owner is hiring a bookkeeping service for your small business.

There are numerous benefits to hiring bookkeeping services:

1. Ability to Concentrate on Core Operations

You may overburdened with the core operations of your business as an owner. These tasks include such as marketing, production, and customer relationship management. Due to this, you cannot spend time tracking expenses, processing payroll, and paying invoices on time. However, a bookkeeper can perform all these activities on your behalf so that you have more time to grow your business.

2. Compliance With Regulatory and Statutory Laws

A bookkeeper ensures that you always follow the legal rules related to business and accounting. In addition, they will also ensure that your accounts and books are up to date in case there are any changes in the laws, which saves you time as you don’t have to go into the details of knowing the laws yourself.

3. Quick Invoicing

One of the most important aspects of your business is sending invoices to your customers and suppliers on time. This is because the quick invoicing process helps to maintain the clash flow for your business. A bookkeeper helps you achieve this goal by ensuring that the business receives payments quickly.

4. Be Prepared for Tax Season

If your ledger is up to date, there will be no stress of keeping receipts and completing your ledger during tax season. A bookkeeper ensures that he or she maintains tax-ready financial statements and trial balances, which means you will save more money and maximize your tax deductions.

5. Get a Clear View of Your Finances

Well-maintained financial statements are essential, as they help you understand your finances or apply for a loan when needed. Basic financial statements such as P&L, balance sheet, and expense reports give a clear and unbiased view of the health of your business.

Moreover, such financial statements also tell you how much your business owes and how much you owe. Therefore, to get a clear view of your finances, it is important for you as a business to hire bookkeeping services.

Summary

Often, as a small business owner there is confusion about when and how you should hire tax and bookkeeping services for your business. Ideally, you should hire a bookkeeper and tax consultant as soon as you start your business; otherwise, many months of invoices and receipts will go unrecorded.

It is always wise to hire a bookkeeper and tax consultant who uses the same bookkeeping and accounting software as your accountant. This makes it easier for both parties to exchange information and maintain records. Dial TFN to speak to your team of accountants and bookkeepers!