Duck And Swan

Bookkeeping Services

What Does a Bookkeeper on a Daily Basis?

Curious about what does a bookkeeper do probably that is obviously that is why you got here. This article is going to spell out a bookkeeper’s accountabilities to the business owner, the accountant, and the government these responsibilities are worldwide. Sure the sales tax, the payroll deductions, personal corporate tax guidelines, and schedules may be different from country to country but the responsibilities are the same across the board.

A Bookkeeper Works in Tandem With an Accountant or Tax Agent

So the work that bookkeeper does will generally include bank reconciliation for the business maybe counts payable maybe accounts receivable payroll if it’s required superannuation dealing with that and a level of reporting where that’s required so whether that’s profit and loss balance sheet etc so generally the bookkeepers role will end with the end of your tax work. Their job would be to prepare the accounts for the year so your accountant can simply pick up your accounting file or access your accounting file and then prepare your tax return at the end or if you are a not-for-profit the bookkeeper would prepare the accounts so the auditor can come in and do the audit and then be able to certify your accounts that everything is as it should be.

Preparation of Source Documents

They prepare what are referred to as source documents for all the operations of a business; the buying, selling, transfer, paying and collecting operations. The documents include papers such as purchase orders, invoices, credit card, slips, time cards, timesheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events which include paying the employees, making sales, borrowing money or buying products for raw materials for production. Bookkeepers also make entries of the financial effects into journals and accounts; these are two different things a journal is the record of transactions in chronological order and accounts is a separate record or page for each asset and each liability.

Preparation of Reports

Bookkeepers prepare reports at the end of a specific period of time such as daily, weekly, monthly, quarterly or annually. To do this all the accounts need to be up to date, the inventory records must be updated and the reports check and double check to ensure that they are error-free as possible. The bookkeepers also compile complete listings of all accounts this is called the adjusted trial balance. While a small business may have a hundred or so accounts very large businesses can have more than ten thousand accounts the final step is for the bookkeeper to close the books which mean bringing all the bookkeeping for a fiscal year to a close and summarize. More details here:

Other Responsibilities

A bookkeeper handles the day-to-day financials of a business and they have a role in both the accounts payable and accounts receivable roles. A bookkeeper creates purchase orders and invoices and posts them through to the general ledger and applies payments to vendor invoices. They create sales orders and sales invoices which they post to the general ledger. They apply cash receipts and also have a role in paying bills, balancing bank statements in taking deposits or posting cash receipts from customers.

So in closing a bookkeeper is going to make your life a lot easier and save you money by doing a lot of the grunt work that the accountant might try to do at the end of the year if you have not engaged a bookkeeper, to begin with.