Bookkeepers duties include managing and processing a company’s financial transactions and recording this information in the company’s general ledger. They are responsible for managing accounts and maintaining accurate financial records.
Using approved accounting software, bookkeepers are responsible for:
- Allocating and posting financial transactions to ‘subsidiary books’
- Transferring financial transaction data to the company general ledger
- Reconciling account balances in the ledgers
- Preparing up financial statements, including trial balance, income statements and balance sheets
- Preparing Tax and VAT payments and reports
- Preparing and paying salaries, with associated documentation
The bookkeeper may also be required to assist with audit processes. At the very least, they are required to keep a complete, verifiable ‘paper-trail’ for audits, by:
- Verifying financial transaction source documents such as invoices and receipts
- Maintaining an accurate and complete filing system for source documents and other documents that support financial records
- Maintaining accurate inventory records
- Ensuring financial transaction and reporting compliance, and maintaining internal controls
Individual bookkeeper duties can vary according to the size and needs of a company. A sole bookkeeper will usually work alone in a small company, managing and recording financial transactions to be passed to an accountant. In a very small company or one-man operation, the bookkeeper may be a part-time contracted individual, who works with a number of other clients.
In larger ‘small’ company, one bookkeeper might be responsible for accounts receivable, another for accounts payable, another for cash transactions, with one main bookkeeper responsible for the ledger balances.
There is a vast difference between an accountant and a bookkeeper – bookkeeping is responsible for recording all the financial transactions of a business whereas accounting is the interpretation, classification, analysis and presentation of the business’s financial data.
Ask yourself – what is your time worth? Your answer may encourage you to outsource your bookkeeping so you can focus on your business.
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