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How Does My Bookkeeper Work with My Accountant?
As we spoke about in our last post, as your bookkeeper, we handle the day-to-day financial transactions and record-keeping. Your accountant takes a more analytical and strategic role in interpreting the data, providing financial advice, and ensuring compliance with financial regulations.
We play a distinct, yet interconnected role with your accountant in managing your company's financial affairs. Here's how we typically collaborate to ensure your financial records are accurate, compliant, and optimized.
Our undertaking as your bookkeeper includes:
- Recording Transactions: Our responsibility is to record day-to-day financial transactions, such as sales, purchases, expenses, and payroll to maintain accurate and up-to-date records by using accounting software.
- Reconciliation: We reconcile bank statements, credit card statements, and other financial accounts regularly. This process ensures that your recorded transactions match the actual bank or credit card activity. Doing so allows us to identify any discrepancies that need to be resolved.
- Financial Reporting: Based on the recorded transactions, we generate financial reports, such as income statements and balance sheets to provide an overview of your company's financial performance.
- Data Preparation: As your bookkeeper we compile and organize financial data, ensuring it's ready for further analysis by the accountant.
A bookkeeper and accountant can communicate regularly to exchange information, clarify financial matters, and coordinate efforts to ensure your company's financial records are accurate and well-maintained.
Your accountant takes the information we assemble and applies his or her skills in:
- Analysis and Interpretation: Data we provide allows them to perform in-depth analysis to gain insight into the company's financial health, profitability, and cash flow. They interpret financial ratios, trends, and other indicators to help you make informed decisions.
- Tax Preparation: We work closely together during tax season to ensure accurate and timely tax preparation. Our financial data is used in completing tax returns to maximize deductions.
- Financial Planning: Your accountant uses the information gathered to assist you in creating financial plans and strategies to achieve your business goals. With this, they may provide advice on budgeting and resource allocation.
- Compliance and Reporting: Your accountant ensures that you remain compliant with tax law, financial regulations, and reporting requirements. it’s the accountant that prepares and submits necessary financial reports to government authorities and other stakeholders.
- Advisory Role: While we focus on recording and organizing financial data, your accountant acts as a financial advisor by providing insight into the company's performance, recommendations for improvement, and pointing out potential risks and opportunities.
In summary, the bookkeeper and accountant work hand in hand to manage your company's financial matters. This collaborative approach ensures that your company's financial operations are optimized for growth.
To see how our office can help you, please contact us to have a chat about your specific needs.
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