Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. When selecting a bookkeeping style, business owners have several options. Learn how QuickBooks Live Expert Assisted can help you streamline your bookkeeping and free up time spent on finances. When comparing accountants and bookkeepers, know that an accountant may also be a bookkeeper. You might need only some or all of net sales these services that can be part of the job of a bookkeeper. How your business operates is unique, and your bookkeeping follows suit.

Why Choose FinancePal for Your Small Business Bookkeeping?

Your employees depends on timely paychecks to cover essential expenses like rent or mortgages, utilities, loans, food, medications, and more. With an efficient payroll processing system, you can ensure on time payment to your employees. Corporate bookkeeping often requires a higher level of organization and accuracy due to the larger volume of financial transactions and the need for more detailed financial reporting. This helps in accurately tracking income and expenses, and aids in understanding the financial health of the business. Bookkeepers are responsible for managing financial records, and one of their core skills is attention to detail. This skill is crucial in ensuring accuracy and minimizing errors in complex data sets.

Track and manage time

• It enables them to effectively interpret and analyze financial data, providing valuable insights to company leaders when it comes to financial planning, budgeting, and forecasting.
• According to BLS data, the median salary for an accountant in 2023 was $79,880 per year or $38.41 per hour.
• And at a certain point, your time is better spent building your business than navigating DIY tutorial videos.
• Depending on the stage of your small business, you may not need to hire a full-time professional bookkeeper.
• Organizations trust you with confidential data and expect you to maintain privacy and be honest with them when handling this sensitive information.

It’s not uncommon for a bookkeeper to work for multiple companies and therefore travel to each business on varying schedules. Most employers choose either a weekly, biweekly or monthly cycle to make payments based on preference and compliance with state laws. Typically, while hourly employees are paid weekly or biweekly, monthly payment is generally more common for salaried employees. The IRS says to store payroll records for at least four years from the date when the taxes are due or from the date that you made the payment―whichever is later.

Step 5: Process payroll deductions

However, it helps to have a two- or four-year degree in accounting, finance or related discipline. As you can see, accounting and bookkeeping are different, so these terms shouldn’t be used interchangeably. However, these two roles are intertwined and typically work together to keep your business’ finances in order.

Automation frees bookkeepers from data entry, allowing them to focus on analysis and financial advising, tasks in higher demand. This shift means bookkeepers help businesses keep their finances in order through more strategic roles. Understanding what’s the difference between traditional bookkeeping tasks and modern responsibilities is essential. Tight deadlines, regular financial reporting, and reconciling discrepancies can be demanding at times.

Common bookkeeper responsibilities include:

• While a bookkeeper does not necessarily do your business tax returns for you, they can be instrumental in the process.
• Maintaining quality books and seamlessly managing payroll both require meticulous attention to detail and timeliness.
• Generally, the accountant will have a four-year or a five-year college degree with a major in accounting.
• You will also most likely need a state tax number from the state’s tax assessor.
• Service providers do all the calculations, pay the appropriate tax bodies and benefits providers and handle the checks or direct deposits for employers.
• That sounds like a mouthful, but often that just looks like inputting all your transactions into accounting software.

Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Business owners that choose to do manual payroll should ensure that employees accurately document the time they work. You will need complete and precise time cards before you can perform the necessary pay and tax calculations and hand write checks for your workers.

She brings practical experience as a business owner and insurance agent to her role as a small business writer. You’ll also need to make sure that you have an employer identification number (EIN). The IRS issues the do bookkeepers do payroll primary EIN and you can apply online for free.