Do You Need A Bookkeeper or Daily Money Manager
You know you need help with your finances, but do you need a bookkeeper or a daily money manager?
Bookkeepers often focus on daily accounting tasks, whereas DMMs help clients simplify their financial life and coordinate with other service providers.
Do You Need a Bookkeeper or Daily Money Manager?
Daily Money Managers (DMMs) are often asked by potential clients, how are you different from a bookkeeper? The short answer, is DMMs do many of the same tasks that a bookkeeper does, but also a whole lot more.
Traditionally, a small business or personal bookkeeper will handle daily financial tasks, including preparing bank deposits, verifying receipts or income, paying bills, assisting with payroll, making purchases, creating invoices (for a business), and tracking accounts.
A DMM, on the other hand, will do all those things plus they might:
Review bank account and credit card statements looking for recurring or irregular charges that are questionable or fraudulent.
Coordinate with a client’s professional team, including their:
attorney, to make sure estate documents are up to date and in order.
accountant, to make sure all tax documents are collected, property, estimated taxes are paid and to provide tax related expense reports, if the client itemizes
care manager, to make sure care givers are appropriately documented and paid.
financial advisor, to ensure accounts are properly titled and funds are properly managed.
Create a comprehensive document, which has all of a client’s most important information in one place, including:
a list of their contacts
insurance policies
income and expenses
assets and liabilities
subscriptions and memberships
donations
Create a budget and review it with the client periodically.
Assist with simplifying their financial life, including closing unused credit cards, and consolidating accounts.
Help look for unclaimed funds.
Assist with running credit reports and helping address any issues that they reveal.
Report to family members any concerns they observe while visiting with the client, such as lapses in memory or challenges in mobility.
Organize files including doing a paper clean out and assisting with what to keep, shred or recycle.
File medical claims
Assist an executor with closing accounts, tracking death notifications, obtaining life insurance proceeds, and sending out death certificates.
Assist with a move, for example from a residence to independent or assisted living by coordinating with a moving company, helping with an estate sale or sale of a car or conducting a paper clean-out.
Help enroll a client onto Medicare or assist a client that needs to file for Medicaid.
Assist with technology, including reviewing emails or helping them with cell phones, iPad, and computers.
Assist with errands, such as getting supplies, going to the post office or bank.
From this list, it is easy to see that while bookkeepers offer a valuable service, DMMs do those same tasks and many more.
If you think you or someone you know is in need of a DMM, feel free to contact Everyday Money Management or call our office at 301-801-2294.
We offer a free initial consultation where we will explore which of our services may be helpful to you.