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Responsibilities of a Professional Bookkeeper
Responsibilities of a Professional Bookkeeper
Who is called a Bookkeeper?
Who is called a Bookkeeper?
Bookkeepers are in charge of maintaining accounts and tracking all of a company's transactions. Bookkeepers have been present for thousands of years, and their importance has grown as corporate processes and transactions have become more sophisticated.
Today's bookkeepers frequently work off-site or as freelancers, which can save your company money. When you plan about it, hiring an individual staff member to work on-site is typically far more expensive. And, in most cases, it isn't required in the case of bookkeeping.
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Functions of a Bookkeeper
Functions of a Bookkeeper
Account Reconciliation
Reconciling your financial records is the most important responsibility of any bookkeeper. Account reconciliation ensures that transaction information in your accounting software corresponds to transaction details on the bank, credit card, and other financial account statements.
To minimize overdraft fines, fraudulent charges, or erroneously reported transactions, it's critical to reconcile your accounts regularly.
Managing Bank Feeds
Real-time bank feeds connect your accounting software to your company bank account, allowing you to observe real-time transactions.
Depending on how good the accounting software is, it should automatically categorize some transactions. A credit card purchase from an airline, for example, can be automatically classified as a travel cost. Bookkeepers watch these transactions to ensure that they are properly classified.
Handing Receivable Accounts
Accounts receivable management may come in a variety of shapes and sizes. As previously stated, small business employees may be filing their estimates or invoices and getting paid against such bills.
There is, however, another possibility. The customer calculates the task using an industry-specific estimating application and then gives the amount to the bookkeeper. They enter the estimates into their QuickBooks Online accounts as the project progresses and create or progress invoices.
Payable Accounts Handling
Many bookkeepers also manage their customers' accounts payable in addition to accounts receivable. That implies the bookkeeper will be in charge of all of the company's vendor invoices. Bookkeepers will take note of each vendor's payment deadlines and any early payment discounts that may be offered and submit payment to the vendor. As a business expands, bookkeepers can add more approvers to give payments the green light.
Working closely with the tax preparer
Many bookkeepers overlook one of the functions that they will act as a translator between you and your certified public accountant or registered agent by default. Because bookkeepers have a far better understanding of your accounts, having your bookkeeper call your tax preparer when you're preparing to submit your small company taxes is sometimes easier.
Are you looking for Online Tax preparation training? Get in touch with us today!
Financial Statement Preparation
The profit and loss statement, balance sheet, and cash flow statement are the three key financial statements that most bookkeepers will generate for your firm. The profit and loss statement displays your company's revenue and costs. The balance sheet depicts the assets and liabilities of your company. The cash flow statement displays how much money is coming in and going out of your business. It's a good idea to have monthly financial statements updated, and then again at the end of the year.
Final Thoughts
The next time you're thinking, "What does a bookkeeper do?" Remember that the answer might be anything from reconciling transactions to processing payroll or handling all of the above.
The answer to this issue will, in the end, be determined by what you and your small business require from your bookkeeper. In any case, having a bookkeeper manage your small business's accounts can free up time and energy for you to focus on building your company. Be a professional bookkeeper by taking up the Professional Bookkeeper certification offered by Universal Accounting. We will train you with the utmost care, ensuring you will be the best in your field. For more details, please visit universalaccounting.com.
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