What Does a Bookkeeper Do?
Bookkeeping is a large component of the finance and accounting department of a business. What Does a Bookkeeper Do? Primarily, bookkeepers are responsible for managing and recording the day-to-day financial transactions of the business; ensuring accounts and records are accurate and complete. Financial transactions include operational expenses, sales, earned revenue, payroll, payment of taxes, earned interest, loans and investments.
A bookkeeper’s role may vary depending on the size and nature of the company. Smaller companies that do not employ an accountant, require more extensive duties from a bookkeeper. At minimum, the bookkeeper is responsible for processing the paperwork for a company’s transactions. This entails getting the information quickly and accurately recorded in the company’s general ledger accounts. Also, bookkeepers provide full back-office support. For instance, processing invoices, paying bills, managing cash, billing and following up on accounts receivable, reconciling account balances, adjusting entries, and processing payroll.
Bookkeepers record the company’s activities in financial statements which display the financial performance of the company. The statements focus on specific parts of a company’s financial activities, such as cash flow, assets or earned revenue and connected expenses. Some small business bookkeepers use paper ledgers and journals to record financial transactions. However, most businesses prefer their bookkeeping be a cloud-based program or system. Bookkeeping and accounting software simplify record keeping while being more cost efficient and making it possible for small businesses with little staff or resources to build and maintain comprehensive bookkeeping systems.
Consultance Accounting leverages exceptional talent, proven processes, and top technology platforms to deliver timely and accurate financial solutions that help small and medium-sized organizations improve productivity, increase profitability, and achieve their goals.