As a business owner, you might be familiar with the term “busy season” when it comes to filing taxes. This is the time when tax accountants are flooded with work, trying to meet the tax deadlines for their clients. However, what you might not know is that behind every tax accountant, there is a bookkeeper working diligently to support them during this hectic period.
In this blog post, we will explore how bookkeepers support tax accountants during the busy season of filing taxes, and how their collaboration can make your business’s tax filing process much smoother.
What is a Bookkeeper, and What Do They Do?
A bookkeeper is responsible for recording and organizing financial transactions for a business. They perform a variety of tasks related to the day-to-day financial operations of a business. Some of the key duties of a bookkeeper include: ensuring that all financial data is accurate and that each transaction is accurately recorded in the company’s accounting software, creating financial statements, reconciling bank accounts, and managing accounts payable and accounts receivable.
How Bookkeepers Support Tax Accountants
During the busy season, tax accountants need to have all the necessary financial data and documents from their clients to file taxes accurately and efficiently. This is where bookkeepers come in. Here are some ways bookkeepers support tax accountants during the busy season:
1. Organizing Financial Records
Bookkeepers play an essential role in supporting tax accountants by organizing financial records and making sure that everything is up-to-date. They help to prepare financial statements and ensure that all expenses are categorized correctly, making it easier for tax accountants to review and file tax returns accurately. Bookkeepers also reconcile bank accounts, ensuring that all transactions are accounted for and that there are no discrepancies. This level of organization allows for tax accounts to easily access the information they need to complete the returns.
2. Generating Financial Reports
Bookkeepers generate financial reports, such as profit and loss statements (P&Ls or income statements), balance sheets, and cash flow statements. These reports provide an overview of a business’s financial health, which is vital for tax accountants to accurately file tax returns. By having these reports readily available, tax accountants can quickly identify any areas that need further review or attention.
3. Assisting with Tax Forms
Bookkeepers are familiar with tax forms and can assist tax accountants with completing them. They can help identify any missing information or inconsistencies in the data, and ensure that all forms are completed accurately and on time. This collaboration ensures that tax returns are filed correctly and efficiently. In addition to providing support during the tax filing season, bookkeepers can also assist business owners with tax planning throughout the year. By tracking income and expenses, bookkeepers can provide valuable insights into tax liabilities and potential deductions.
Why You Need a Bookkeeper During the Busy Season
The busy season can be overwhelming for both business owners and tax accountants. Bookkeepers are an integral part of any business’s financial management team. By hiring one, you can alleviate some of the stress and ensure that all financial records are organized and up-to-date. This can save time and money in the long run, as tax accountants can quickly access the information they need to complete tax returns accurately and efficiently.
Bookkeepers can help identify areas where your business can improve financially, such as reducing expenses or increasing revenue. By having a clear understanding of your business’s financial health, you can make informed decisions that will benefit your business in the long run.
If you’re a business owner who hasn’t yet hired a bookkeeper, schedule a free 30-minute consultation with us. If you’re a tax accountant, contact us so we can talk more about how bookkeepers like us can help you focus on your core responsibilities of preparing and filing tax returns.
Bookkeepers can handle the day-to-day financial tasks, allowing tax accountants to spend more time on tax planning and providing tax advice to their clients. By partnering with a bookkeeper, tax accountants can offer their clients a comprehensive range of financial services, increasing their value proposition and potential for growth. By working together, bookkeepers and tax accountants can provide a comprehensive range of financial services, helping businesses and individuals achieve their financial goals.