Bookkeepers manage an organization’s ledgers, which are the most important accounting documents. Recording transactions like income and outgoings and posting them to multiple accounts are part of the day-to-day activity of a bookkeeper. A bookkeeper’s job description should emphasize the importance of good time management and organizational skills, as this is a large and diversified function. It can lead the way to a more senior or specialized accounting career because it exposes you to various facets of the accounting function.
What are the main roles of a bookkeeper?
A bookkeeper is responsible for keeping track of a company’s financial operations, such as purchases, costs, sales income, invoices, and payments. General ledgers will be used to construct the balance sheet and income statement when financial data is recorded. The first six steps of the Accounting Cycle are often overseen by a bookkeeper, while the last two are typically handled by an accountant. While the two professions have a lot in common, there are a few differences that will be covered later in this article.
What do bookkeepers do?
A bookkeeper assists businesses by recording and processing financial transactions and generating financial statements. Some bookkeepers are in charge of the general ledger, which is the accounting system for an entire company. Others, on the other hand, work as accounting clerks, managing specific tasks as part of a team. They check receipts, make bank deposits, transmit payments, and keep track of past-due accounts. In many circumstances, a bookkeeper is also in charge of preparing and submitting Business Activity Statements (BAS).
Here is an overview of some of the more significant tasks that bookkeepers engage in.
Data input
Your bookkeeper will keep track of all of your financial transactions by entering them into the system on a regular and accurate basis, allocating them to the appropriate accounts in the organization’s accounting software, and generating regular reports that provide useful data on your company’s performance.
Keeping track of your expenses
To verify that you are getting what you paid for, all of your business outflows must be recorded and reconciled with any POs and delivery receipts.
This will be handled by your bookkeeper, who will also record any petty cash or credit card purchases into your accounting system.
Bookkeepers can also keep track of who is spending what and spot any possible overspending.
Management of invoices and receipts
Collecting money from consumers is an important cash flow driver for any small firm.
A professional bookkeeper will ensure that invoices are sent on time, late payments are followed up on, and all cash entering the business is managed. These basic tasks can often determine whether a small business succeeds or fails.
Processing of payroll
Payroll can be a time-consuming chore if you have employees. Checking timesheets, distributing any commission due, calculating payroll tax and superannuation, and keeping proper employee records, including bank account information, are all part of paying your employees. The payroll must subsequently be processed through the accounting system as well as the bank account.
If you perform your payroll weekly or fortnightly, having a bookkeeper will save you a lot of time.
Banking
The majority of internet accounting software products now connect to corporate bank accounts directly.
Your bookkeeper can import banking data straight into your accounting system, as well as assign payments and receipts.
Bookkeepers will reconcile your bank transactions to your accounting system to ensure you have accounted for every transaction.
Compliance
You should verify that your bookkeeper is a registered BAS Agent, which means they’ll be able to prepare your BAS in accordance with ATO guidelines.
They’ll be able to prepare payroll tax and superannuation records and payments, as well.
They will also be able to help you with any business loans or other areas that demand frequent reports.
Reporting on finances
Finally, your bookkeeper will present you with regular financial reports, such as P&L, cash flow, balance sheets, and budgets, and cash flow forecasts. These reports will arm you with all the information you require to optimize your company’s financial performance. They’ll be able to advise you on what needs to be improved and what areas are functioning well enough to be advanced to the next level.
Description of the Position
Bookkeepers keep track of money, property, and other financial assets’ inflows and outflows. The most crucial job of a bookkeeper is to accurately record and review all financial data. Bookkeepers must pay close attention to details and be extremely exact while documenting numerical data to flourish in this career. They’ll also need to be ethical and safeguard the confidentiality of a client’s financial data as part of their employment.
The majority of bookkeepers now manage financial data, such as employee payroll, electronically. You may need to learn the usage of spreadsheets, databases, or specialized computer tools for this. Financial reports are also written or printed by bookkeepers. Some bookkeepers process bank deposits, keep track of purchases, send bills for a client’s accounts receivables, and prepare federal and state tax returns.
A bookkeeper’s responsibilities
Bookkeepers are responsible for providing accurate and up-to-date financial information about a corporation. They are continually taking a company’s pulse.
Their reports are regularly distributed to corporate owners and managers to aid in decision-making. Some bookkeepers, on the other hand, are actively involved in strategy design.
Accountants may be involved in some bookkeeping chores, such as the drafting of yearly financial reports and tax filings. Keep in mind that certain professional groups, such as the Institute of Certified Bookkeepers (ICB), mandate bookkeeper insurance, so if you’re a member, check their guidelines to see what coverage you’ll need. The goal of professional indemnity insurance is to protect you as a professional from any mistakes you might make.
Accounting responsibilities
Data entry and bank reconciliation are the two most important duties in small business bookkeeping. All other bookkeeping chores will fail if you don’t have these. Let’s go over the basic responsibilities, common extra responsibilities, and sophisticated bookkeeping.
- Preparing tax returns for individuals
- Inputting data
- Keeping track of financial transactions and reconciling the records.
- Performing bank reconciliation to confirm the accuracy of the books by cross-referencing them with bank statements and other source documents.
- Producing monthly reports summarising the financial situation of the company.
Further responsibilities
Just some of the additional responsibilities an accountant may have are as follows:
- Managing receivables (accounts receivable) (and credit control)
- Generating and mailing bills, as well as following up to ensure that they are paid.
- Assuring that supplier invoices are accurate and paid on time.
- Managing payroll to calculate wages and deductions.
- Submitting tax returns
- Assisting with the generation of annual profit and loss statements and balance sheets.
- Creating budgets and predictions, as well as providing advice on how to enhance the company.
- Studying, reviewing, and implementing software solutions and internal processes to help the company run more efficiently and effectively.
- Working with employees on best practices in bookkeeping and software applications.
- Providing a full-service virtual office, including phone numbers, mailing addresses, and email communications.
- Meeting with accountants to discuss financials and tax issues on behalf of their clients. Acting on the client’s behalf before the tax authorities.
Also Read: Right News from RightNewsNetwork
