A bookkeeper, sometimes known as a bookkeeping clerk, is a financial expert who keeps track of a company’s financial records and accounts. Besides that, we will delve deeply into the bookkeeper job description.
S/he verifies the correctness of accounting records, manages invoices and payments, and maintains a system for organizing firm papers.
This article will break down the job descriptions of a bookkeeper and possibly, provide some template samples.
Table of contents
Who is a Bookkeeper?
A bookkeeper is in charge of keeping track of financial transactions such as purchases, expenses, sales income, invoices, and payments for a company.
Financial data will be entered into general ledgers, creating the balance sheet and income statement.
A bookkeeper often oversees the first six steps of the Accounting Cycle, while an accountant typically handles the last two.
The bulk of people who employ the services of a bookkeeper is; from professional, scientific, and technological organizations.
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Qualities of a Good Bookkeeper
An exceptional bookkeeper should possess the following qualities.
- Proficient in mathematics to swiftly check the accuracy of database information by mentally performing basic procedures.
- Familiar with the fundamentals of a company’s financial operations
- Meticulous and the capability to see the big picture of what the data means to a company’s finances
- Ability to keep sensitive information confidential
- Knowledge of XERO, Quickbooks, Zoho, Fresh Books, or other accounting software is required.
How much does a Bookkeeper Earn?
In the United States, a bookkeeper can earn between $30,000 and $60,000 annually. Compensation will vary based on the business, area, and candidate experience.
Because of the greater volume of transactions and data, larger organizations offer better compensation for bookkeepers.
A large organization can process hundreds of transactions per second, whereas a tiny business may only process a few hundred daily.
Both bookkeepers and accountants typically start with equal salaries; however, an accountant’s earning potential increases as their career progresses.
It’s not uncommon for a seasoned bookkeeper to switch careers and work in accounting or another field.
Bookkeepers gain an excellent understanding of how a firm works because they work directly with raw data.
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What is the Difference between a Bookkeeper and an Accountant
A bookkeeper’s job is to enter transactions into the system, which is part of the larger and more general accounting profession.
The trial balance, a consolidation of all the general ledger accounts, is typically provided by a bookkeeper to an accountant, who uses it to generate the Balance Sheet, Income Statement, and later the Statement of Cash Flows.
Bookkeepers, in one sense, create the basis for accountants to examine and prepare financial accounts.
Bookkeepers employ software to help with transaction recording. They typically use built-in data processing tools to aid in preparing financial statements and preset transaction categorisation to improve transaction recording efficiency.
Responsibilities of a Bookkeeper
The following are the duties of a bookkeeper.
- Keep track of the daily financial transactions and finish the posting process.
- Examine the day book, suppliers, customer ledger, and general ledger to ensure that transactions are recorded correctly.
- Bring the books to the point of trial balance.
- Carry out some preliminary checks on the posting process.
- Fill out all tax forms.
- Create reports and financial statements by entering data, maintaining records, and creating reports and financial statements.
- In a timely manner, process accounts receivable/payable and payroll.
Who does a Bookkeeper Report to?
Bookkeepers can report directly to business owners or senior accounting department roles such as Head Accountants, Accounting Managers, or Data Analysts, depending on the size of the company they work for.
Also, s/he generates reports used by the whole accounting team to drive decisions and strategic suggestions, thus, they collaborate closely with accounting leadership to verify their correctness.
To maintain legal compliance with their Bookkeeping methods, Bookkeepers may also report to a Corporate Controller or Assistant Controller.
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Bookkeeper Job Description Templates
Template 1
Template 2
Conclusion
Bookkeepers are critical to every company’s success. A bookkeeper plays an important function in the accounting cycle’s data collecting and data input.
The recorded financial data can provide useful, actionable knowledge when a robust system is in place to minimize problems like skimming fraud.
References
- https://www.glassdoor.com
- https://www.betterteam.com/
- https://www.indeed.co
- https://corporatefinanceinstitute.com/
- https://resources.workable.com/
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