What A Bookkeeper Does
What does a Bookkeeper do ?
A bookkeeper’s duties encompass several critical tasks related to maintaining accurate financial records for a business.
Here are some of the major tasks:
- Recording Transactions:
- Bookkeepers meticulously record financial transactions such as sales, purchases, expenses, and payments.
- They ensure that each transaction is accurately documented, including relevant details like dates, amounts, and descriptions.
- Classifying and Categorizing:
- Bookkeepers organize transactions into appropriate categories (e.g., assets, liabilities, revenue, expenses).
- Proper classification ensures clarity and facilitates financial reporting.
- Maintaining Ledgers and Journals:
- They update general ledgers and subsidiary journals regularly.
- Ledgers track individual accounts (e.g., cash, accounts payable), while journals record daily transactions.
- Bank Reconciliation:
- Bookkeepers compare bank statements with internal records to identify discrepancies.
- Reconciliation ensures accurate cash balances and detects any errors or fraud.
- Accounts Receivable and Payable:
- They manage accounts receivable (money owed to the business) and accounts payable (money owed by the business).
- Bookkeepers track invoices, payments, and outstanding balances.
- Payroll Processing:
- Bookkeepers calculate employee wages, deductions, and taxes.
- They ensure timely payroll processing and accurate paychecks.
- Financial Reporting:
- Bookkeepers prepare financial statements (balance sheets, income statements, cash flow statements).
- These statements provide insights into the company’s financial position and performance.
- Compliance and Documentation:
- They maintain compliance with tax regulations and reporting requirements.
- Bookkeepers keep records organized, including receipts, invoices, and other supporting documents.
- Communication with Accountants:
- They collaborate with accountants to ensure accurate financial reporting.
- Bookkeepers provide necessary data for tax filings and audits.
- Software Utilization:
- Modern bookkeepers use accounting software to streamline processes, track transactions, and generate reports.
Remember, a skilled bookkeeper plays a vital role in providing information used for decision-making.
Bookkeeper's Task
What does a bookkeeper do ?
A Bookkeeper's Daily Tasks
What's a normal day like for a bookkeeper ? Watch my short video presentation to learn what their duties are.