No matter how large or small your business, bookkeeping is the foundational role of your accounting system. Bookkeepers oversee a company’s financial information and compliance by maintaining accurate books on accounts payable and receivable, payroll, financial entries, and reconciliations. They also perform daily accounting tasks like monthly financial reporting, general ledger entries, and record payments and adjustments.
While having a bookkeeper is necessary for every business, sometimes small businesses overlook the other aspects of their accounting and financial management that are imperative for growing and thriving in the long term. A great example of this is the fact that many small businesses commonly outsource their bookkeeping and accounting responsibilities to a relative or family member, which is effect at reducing costs, but can lead to less effective process, strategy, and results in an area that is so important for the financial health of the business.
Where the bookkeeper records and classifies the financial transactions of the company, having an accountant or financial manager takes the process to the next level by analyzing, reviewing, reporting, and interpreting financial information to make informed business decisions. When a small business has “more than just bookkeeping,” you would be surprised at how much more organized, strategic, and visionary you can be with the addition of these other accounting processes:
Financial Accounting
Bookkeeping falls into the financial accounting bucket, but there is so much more to be done when it comes to keeping up with your day-to-day accounting operations. This includes having the systems design and management in place to ensure you’re your bookkeeping is not only done on time, but also correctly.
Managerial Accounting
Many organizations struggle to design and maintain managerial accounting operations. Whether it is developing cost accounting structures or implementing a system for measuring your business analytics, it is important to have the processes in place to track and learn from your key performance indicators.
Performance Management
Does your leadership operate in a performance management system? Your business’s leadership team must work together to determine goals and design processes that help move ideas to action, build transparency, and deliver reporting structures that allow your team to make fact-based decisions.
These key areas of maintaining a financially healthy and sustainable business make it clear that it takes a lot more than bookkeeping to bring your business long-term success. APTUS Business Services is here to meet the needs of small businesses who are looking to bring process, data, strategy, and performance management to your business. Learn more about APTUS and our CPA-level leadership team here.
