What Does a Bookkeeper Do?

14 Oct

A bookkeeper, also known as a bookkeeper-bookkeeper, is a person who manages the finances of an organization or business. They normally handle basic accounting ledgers, prepare financial records (accounting transactions), and make financial reports to the owners or the managers of the company. The responsibilities that you need to fulfill depend upon the size and scope of your business. You will either hire a full-time employee to do the job or you may opt for bookkeeping outsourcing where the bookkeepers from an external company will take over the tasks related to the accountants’ work while he or she works from home.

The bookkeepers malvern or bookkeepers in the accounting firms or the bookkeeping services will create monthly, quarterly, and yearly financial reports which show the total income and expenses that are made by the company. It will also detail the cash flow and balance sheet reports which are essential in assessing the worthiness of a company’s assets and liabilities. The reports are usually sent to the management and auditors of the company so that they can audit the company’s accounts and come up with a good report for the year end.

The job of the bookkeeper usually entails creating spreadsheets to record the daily financial transactions of the company. He or she will enter the values into the books and then summarize the data given to make it easy to read and understand.  Most bookkeepers are responsible to ensure the collection and storage of accounting documents such as vouchers, invoices, receipts, bank drafts, checks, financial transactions, and many others. Some of them deal with accounting and bookkeeping related tasks alone while others may work as part of the finance department, sales department, human resources department, office of the CEO, or marketing department.

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Bookkeepers are needed in most businesses since the accounting system is the source of tracking all financial transactions of the business. Without a bookkeeper, the records of the daily transactions are not updated and sometimes they are even missing. Therefore, a bookkeeper plays an important role in ensuring the smooth running of the business finances.

The number of bookkeepers is usually two but if there are more than one, they usually work as a team. The accountants do most of the work while the bookkeepers scrutinize and maintain the books. They have to be experts in conducting numerous financial transactions everyday. They have to have great communication skills because the accountant is communicating directly with the customers regarding their financial records and transactions.

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In most cases, the accounting staff is composed of three to four people who perform different roles. Aside from their role as accountants, they could also perform other clerical jobs such as handling the cashier’s duties and handling some minor sales or purchases for the business owners. Without bookkeepers and accountants, the business owners will not be able to properly conduct the day-to-day accounting procedures. Therefore, bookkeeping needs must be included in the business owners’ list of top priorities.