Bookkeeper job description
/The bookkeeper position creates financial transactions and generates reports from that information. The creation of financial transactions includes posting information to accounting journals or accounting software from such source documents as invoices to customers, cash receipts, and supplier invoices. The bookkeeper also reconciles accounts to ensure their accuracy.
Bookkeeper Principal Accountabilities
A bookkeeper's principal accountabilities can be categorized into several key areas:
Financial recordkeeping. Bookkeepers are responsible for accurately recording all financial transactions in the company's accounting system. This includes tracking income, expenses, and payments to ensure that financial records are up to date. Proper recordkeeping helps businesses maintain compliance with tax laws and financial regulations.
Accounts payable management. Managing accounts payable involves tracking and processing payments to vendors and suppliers. Bookkeepers ensure that invoices are verified, approved, and paid on time to avoid late fees or service disruptions. They also reconcile supplier statements to ensure accuracy and prevent overpayments or duplicate payments.
Accounts receivable management. This includes generating and sending invoices to customers, tracking outstanding payments, and following up on overdue accounts. Bookkeepers monitor cash flow by ensuring that payments are received in a timely manner. They may also assist in implementing credit policies to minimize the risk of bad debts.
Bank reconciliation. Bookkeepers regularly compare company financial records with bank statements to identify discrepancies. This process ensures that all transactions are recorded accurately and helps detect errors, unauthorized transactions, or fraud. Reconciliations are essential for maintaining accurate financial reports and preventing cash flow issues.
Payroll processing. Bookkeepers assist in processing payroll by calculating wages, deductions, and tax withholdings. They ensure that employees are paid accurately and on time while complying with labor laws and tax regulations. They may also prepare payroll reports for management and file necessary payroll tax forms.
Financial reporting. Bookkeepers generate financial reports, such as profit and loss statements, balance sheets, and cash flow statements. These reports provide valuable insights into a company's financial health and help management make informed decisions. Accurate reporting is also crucial for tax preparation and financial planning.
Tax preparation and compliance. Although bookkeepers do not usually file taxes, they prepare necessary records for accountants or tax professionals. They ensure that sales taxes, payroll taxes, and other financial obligations are recorded and reported correctly. This reduces the risk of tax penalties and ensures compliance with government regulations.
Budgeting and expense monitoring. Bookkeepers track business expenses and assist in budget preparation by monitoring financial data. They help identify cost-saving opportunities and ensure that spending aligns with business goals. Keeping a close eye on expenses helps businesses maintain profitability and financial stability.
Software and system management. Bookkeepers often use accounting software like QuickBooks, Xero, or FreshBooks to manage financial transactions. They ensure that these systems are properly maintained, updated, and used efficiently. They may also assist with setting up automation for recurring payments, invoicing, and reporting.
Internal controls and fraud prevention. Bookkeepers play a role in implementing financial controls to reduce errors and prevent fraud. They help establish procedures for transaction approvals, cash handling, and expense tracking. Strong internal controls protect the company’s assets and ensure financial integrity.
By handling these responsibilities, bookkeepers help businesses maintain accurate financial records, comply with regulations, and make sound financial decisions.
Related AccountingTools Courses
Bookkeeper Desired Qualifications
The bookkeeper candidate should have an Associate's degree in accounting or business administration, or equivalent business experience, as well as a knowledge of bookkeeping and generally accepted accounting principles. Preference will be given to candidates with a working knowledge of the _____ accounting software package. Should be very detail oriented.
Who Does a Bookkeeper Report To?
A bookkeeper typically reports to the owner of a business. The bookkeeper position is intended to be a freestanding position where there is no more senior person in the accounting department, so reporting to the owner makes the most sense. The bookkeeper may also work with an outside CPA, who advises on the proper accounting procedures, and who may review the bookkeeper’s financial statements.