What is a bookkeeper?

You never miss them in either big or small enterprises around us. However, for a quicker understanding, we might want to ask, instead, what does a bookkeeper does on a daily basis. That will answer questions on what exactly does a bookkeeper does. Or else, what does a bookkeeper do for a small business.

In an office set up, the bookkeeper undertakes several accounting duties and responsibilities. Most of what they do is handling the financial records of a company. This article gives a quick brief of who these people are. Also, their responsibilities, and so their importance in any business set up.

What does a bookkeeper do on a daily basis?

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The answer to this question narrows down to the duties of an accountant. Accountancy is a distinct profession within the business field. It helps effectively equips a commerce learner with the necessary skills to undertake accounting duties. Key among these duties is bookkeeping.

Below are the critical duties and responsibilities of a bookkeeper. Remember, these are general duties; however, still one may specialize in one to be an expert.

  • Ensure quality recording of all financial transactions
  • Be in charge of the ledger – updating it for every transaction
  • Reconciling entries into an accounting system
  • Credits and debts recording
  • Balancing sheets
  • Using the local law formula in presenting financial reports
  • Monitor any inconsistencies from the anticipated budget

Relevant Skills and knowledge

  • A primary knowledge of accounting basics
  • Following the accounting and work ethics
  • Knowledge of different accounting framework, U.S GAAP, IFRS, or any other
  • Data entry competency
  • High level of accuracy and keenness
  • Proficiency in various accounting software, Microsoft Excel, XERO, Zoho, Quickbooks, Fresh Books
  • organization and professionalism skills
  • A one year of experience or associates degree

What does a bookkeeper do for a small business?

The duties of a bookkeeper never change, at least not with the business type. Small businesses so much also need services of a bookkeeper. Like even the more significant business, they borrow, spend, and buy assets. Keeping all these records is very crucial for the growth of a business.

What exactly does a bookkeeper do for a small business will entail the following;

  • Keeping records of financial transaction
  • Filling tax on behalf of the business
  • Reconciling financial records
  • Generating financial reports
  • Auditing
  • Data entry
  • Handling payroll
  • Preparation of financial statements
  • Managing cash flow
  • Manage bank statements and feeds
  • Daily account management
  • Sending and managing invoices
  • Perform Stocktake

The duties and responsibilities of a here are intertwined. Thus in most cases, they will multitask.

Difference between Bookkeeper and Accountant?

It is a little tricky for many to differentiate between these two – the difference is only a thin line. Although, in simplest terms, a bookkeeper only lays the ground for an accountant. What a bookkeeper does is registering the financial transaction in a ledger. Sometimes also, the filling can be to an accounting system. An accountant, on the other hand, will find them to balance sheets and later produce a statement of cash flow.  

Recent trends, although, embrace multipurpose working mode. Thus a highly competent bookkeeper can handle all the accounting tasks and vice versa.  However, still there exists a clear difference separating these two.