What Exactly Does a Bookkeeper Do?
A bookkeeper is someone that is responsible for processing the records of various transactions that occur for a business. The transactions that are recorded are done within a company’s general ledger. This typically involves the use of some sort of accounting software in today’s digital age. Because they manage the books of a company’s business, it is important that bookkeepers are accurate and efficient. Along with being accurate, they must understand the in’s and out’s of debits and credits, accounts payable procedures, payroll, accounts receivable, and even sales.
What Are a Bookkeepers Tasks and Responsibilities:
A bookkeeper is typically provided various accounting tasks. This is where a large portion of your time is likely to be spent. You are going to do various things involving accounting within the business including depositing funds from various clients, making payments to vendors, balancing bank accounts, printing payroll checks, and more. You are likely going to be using some accounting management software to handle the books. The software is likely going to change depending on how large the business you are working for is. A lot of bookkeepers will also be responsible for preparing reports on a company for quarterly meetings including financial, accounting, tax, and auditing reports.
Another thing that bookkeepers are likely to be tasked with is administrative tasks. Because of this, bookkeepers must have great organizational skills. Because they are going to be fully responsible for handling a company’s finances, they also must be trustworthy. They might even be handling the company’s cash directly. Therefore they must be responsible enough to trust to properly allocate funds and deposit them accordingly.
As a bookkeeper, you will be tasked with a variety of administrative tasks that are crucial to the successful and accurate record keeping of various financial transaction and overall finances of a business. Because of this, daily administrative tasks will need to be performed, so you don’t end up getting behind.
3. Office Communication.
Along with that, bookkeepers are likely going to have to meet with various organizational employees and managers to discuss finances with them. This includes budget meetings, inventory demands, and more. Without having effective communication skills, you are likely not going to have all of the information needed to do your job properly. At the same time, you will not be able to enter all of the information into the bookkeeping records for accurate reporting.
Because you are responsible for the finances of a business, your job is to get receipts from various employees and issue expense account reimbursements that the company is going to pay for. Thus, you will need to effectively communicate with various employees on a daily basis to create the necessary procedures for getting these receipts. That way, you can keep your accounting and record keeping on track.
4. Understand and Comply With Local, State, and Federal Reporting Requirements and Laws.
You will also need to be familiar with all of the laws that are required to follow when it comes to the accurate reporting of finances and accounting data within the business that you are in. That way, you will be able to report the information properly and by the laws set forth.
5. Maintain Petty Cash Fund.
As a bookkeeper, you are likely going to be responsible for maintaining a proper petty cash fund as well (if applicable). This means that you will need to demonstrate trustworthiness to effectively manage cash at the business in question.
6. Work With External Accountant.
If your business is smaller or medium-sized, you are likely going to have an external accountant that you have to report to provide the necessary information to create the company’s financial statements. Thus, you will need to effectively relay this information and provide the right data/numbers.
What Is Kind Of Education Required?
To become a bookkeeper, you are going to need to only have a high school diploma. You typically do not need further education. However, some companies make an effort only to hire employees that have higher education. Therefore, you will most certainly be positioned better with a college degree of some sort.
Having completed college coursework in accounting and bookkeeping is a big plus if you are looking to get a job with a larger business or organization. Also, having previous administrative positions or experience is likely to put you at the forefront of the applicants as well. Because bookkeeping requires a lot of administrative tasks and organizational skills, this looks very good to prospective employers.
Overall, there are a lot of different things that you are going to have to do if you want to be a bookkeeper. While it is not necessary to have a college education or degree, it is going to be much preferred for a lot of employers. Because of this, it would be wise to obtain one. That way, you can not only have a better chance at scoring the job that you want but also have a better chance of getting higher pay when you do get the job that you want. A book-keeping job can typically lead to further accounting jobs with more responsibilities and tasks. However, those jobs typically require formal higher education and in some cases will require a CPA. Therefore, it is something to think about.
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