Bookkeeping is an essential part of any business. It helps to keep track of financial transactions, manage accounts receivable and payable, and provide accurate financial reports. Professional bookkeeping services in Houston(TX) can help businesses stay organized and compliant with the law. Here are 10 things that professional bookkeeping services in Houston do:

1. Record Financial Transactions

Professional bookkeepers record all financial transactions for a business. This includes sales, purchases, payments, receipts, payroll, taxes, and other expenses. They also reconcile bank statements and credit card statements to ensure accuracy.

2. Manage Accounts Receivable and Payable

Bookkeepers manage accounts receivable and payable for a business. This includes tracking invoices, payments received, and payments made. They also prepare monthly statements for customers and vendors to ensure timely payment of bills.

3. Prepare Financial Reports

Bookkeepers prepare financial reports such as income statements, balance sheets, cash flow statements, and budgeting documents. These reports provide insight into the financial health of a business and help owners make informed decisions about their operations.

4. Monitor Cash Flow
Bookkeepers monitor cash flow by tracking incoming funds from customers and outgoing funds to vendors or suppliers. They also forecast future cash flow needs based on current trends in order to anticipate potential problems before they arise.

5. Track Inventory
Bookkeepers track inventory levels to ensure that there is enough stock on hand to meet customer demand without overstocking or running out of items too quickly. They also monitor inventory costs to identify areas where savings can be made or where prices need to be adjusted due to market conditions or supplier changes.

6. Reconcile Bank Accounts
Bookkeepers reconcile bank accounts on a regular basis to ensure accuracy in the books of account and detect any discrepancies between the actual balance in the bank account and the balance reported in the books of account. This helps prevent fraud or errors from occurring within the company’s finances.

7. Prepare Tax Returns
Bookkeepers prepare tax returns for businesses each year by gathering all necessary information such as income statements, expense reports, payroll records, etc., calculating taxes owed based on applicable laws, filing returns with the IRS or state tax authorities as required by law, and ensuring that all deadlines are met for filing returns on time each year.

8 . Analyze Financial Data
Bookkeepers analyze financial data such as income statements, balance sheets, cash flow statements, etc., in order to identify areas where improvements can be made or where cost savings can be achieved through better management practices or more efficient use of resources within the company’s operations .

9 . Maintain Records
Bookkeepers maintain records such as invoices paid/received , employee payroll records , vendor contracts , etc., which are important for legal compliance purposes as well as providing evidence of transactions when needed .

10 . Provide Advice & Guidance
Finally , professional bookkeeping services in Houston provide advice & guidance regarding best practices for managing finances , setting up accounting systems , preparing budgets , etc., which can help businesses maximize their profits while minimizing their risks .