Bookkeeper Duties

Quick Fact

According to the Bureau of Labor Statistics, from 2010 to 2020, the employment of bookkeeping, accounting, and auditing clerks is estimated to grow at 14%, almost as fast as the average for all occupations.
A bookkeeper or an accountant is one of the most important positions in a company or organization. This is because it is the responsibility of the accountant to handle the entire financial function of the company. As the accountant has to deal with large amounts of money on a regular basis, the person aspiring for this job must be organized and serious about his work.

Duties

Maintaining Records: The key responsibility of a bookkeeper is to keep a record of the transactions of the company like accounts receivable, accounts payable, calculation of profit and loss, etc. He has to maintain a record in the books of accounts by posting detailed entries in the journal and general ledger regularly. He also has to reconcile the bank accounts.

Balancing Accounts: Apart from this, he is also expected to maintain accounts for all transactions and ensure that all the figures are in order. He has to keep a tab on the expenses and income of the organization. He should always ensure that every entry in the financial statements tallies and is backed by the relevant records.

Payroll Management: In many organizations, looking after payroll related activities of the employees is a key result area of a bookkeeper. He has to evaluate the leaves of the employees, see if there are any deductibles, calculate the salaries, issue paychecks, or direct the bank to credit the salaries to their accounts on time. Also, he has to ensure that the bank has enough balance for crediting the salaries on time. If there are discrepancies, it is the duty of the bookkeeper to settle them.

Financial Statements: A bookkeeper has to prepare certain mandatory financial documents like the income statement, budget report, trial balance, profit and loss statement, cash flow statement, balance sheet, annual report, etc. He has to calculate and give accurate details of every entry in these reports.

Chasing Defaulters: A bookkeeper has to draft and dispatch invoices or bills for receiving payments from various customers. He has to send the bill for the correct amount of receivables. Many customers have their own terms of payment and a bookkeeper will have to follow up consistently till the payment is made.

Provides Assistance: In a large organization with a team structure, a bookkeeper might have to assist the chief financial officer, finance manager or a senior accountant for the finance related matters of the office. In such a case, the duties of each team member will be distributed. However in a smaller organization, a bookkeeper may have to undertake additional responsibilities. He may also have to help the employees in filing their insurance claims, benefit claims and provide reimbursements.

Signing Authority: Many times, a bookkeeper is responsible for signing checks or issuing cash to people. Hence, he should ensure that the necessary approvals are in place and the bank accounts have adequate balance before issuing the payment. Also, he has to keep a close vigil on doubtful transactions in the company's bank account.

Updating Knowledge: A bookkeeper has to be abreast with the rules and regulations pertaining to tax and business laws. For this, he has to attend programs, seminars, and be a part of forums and institutes which give knowledge about such aspects. Any faltering on the bookkeeper's part can have serious legal and financial implications for the organization. Hence, a bookkeeper should update his knowledge from time to time.

Taxation: A bookkeeper has to do tax planning and also file for business tax returns. He should ensure that timely tax payments are made to the local, federal and state government. He has to meticulously take care of all the documentation, paperwork and records required for tax.

Audit: In certain companies, an accountant is also responsible for conducting an internal audit to verify the accuracy of accounting conducted manually or with the help of computers. He is also answerable to an external auditor for any queries related to the transactions in the financial reports.

Accounting Software: He should update his knowledge of the software related to bookkeeping and accounting. They will not only help in saving time, but also curtail the errors which are prone to occur during manual accounting.

Budget: He should help in developing budgets. He should consider the expenses and incomes along with the strategic business decisions of the organization while designing the budget. While planning the budget, a provision for contingency is also to be considered.

Insurance: An accountant has to look after the allocation of funds and completion of formalities for Business and Workers Compensation Insurance and Employee Health Insurance.

Communication: A bookkeeper should communicate with the concerned people about the financial activities of the organization. He can utilize spreadsheets and software or even give presentations with statistical data.

Reports and Documentation: An accountant should maintain separate registers or records for payroll and checks. He has to prepare customized reports by collating the data as required by the senior management. Also, he has to generate payroll reports on a monthly, quarterly, and annual basis. He may also have to prepare reports related to statistics, finance and accounts for audit purposes.

Qualities/Skill Sets

• Accuracy with numbers
• Detail-oriented
• Trustworthy
• Logical thinker
• Honesty
• Concentration
• Multitasking
• Speed
• Knowledgeable
• Software skills
• Organized
• Committed
• Communication skills
• Troubleshooting skills
• Proactive

Qualifications

Though bookkeeping does not require specialized training, it is required for an individual to have at least a high school diploma. However, having a college degree or may be a diploma in accounting or bookkeeping can help the person in earning more. Most companies give on-the-job training to candidates to help them understand the financial proceedings of the company. An individual who aspires to become an accountant should have a knack of handling numbers. He is also required to handle large sums of money and be very organized, in order to avoid the loss of important papers and documents. Moreover, bookkeeping can be tedious job because one has to update the accounts on a regular basis. Apart from this, he should be alert, not only to avoid making mistakes, but also to point out the mistakes made by others.

Pay Scale

When it comes to salary, there are several factors that have to be considered. The total salary would generally depend on the size of the company along with the duties, responsibilities and perquisites of the job. Depending on these factors, many accountants are paid on an hourly basis. On an average, the salary can be anywhere between $30,000 to $50,000. However, this is just the starting salary. In other words, the salary of an accountant varies as per his qualifications and work experience.

An accountant needs to personify responsibility and integrity as he has to handle confidential data of the company. He has to ensure that all the finance related activities are functioning within the scope of the government rules and regulations.