The Role Of a Bookkeeper
A bookkeeper is someone who monitors and records the financial transactions of a business. Examples of transactions include company sales, expenses, and purchases. The revenue from sales is what the company gets when a customer purchases products or services. Expenses are what the company spends in its operations. A bookkeeper deals with the invoices from these transactions and handles payments. The bookkeeper enters this data into a general ledger. At the end of a cycle, this data entered by the bookkeeper is used to generate a balance sheet. Perth Mobile Tax knows these bookkeeper duties by heart.
Job Description Of A Bookkeeper
The characteristics required from a bookkeeper include accuracy, attention to detail, and the ability to minimize errors. The bookkeeper must be literate in general accounting principles and have experience with accounting software. The bookkeeper is expected to use modern accounting systems when dealing with hundreds of financial transactions and be able to reconcile and consolidate them into a format that other people can understand. A good aptitude in technology is highly desirable in order to use accounting software systems efficiently.
The bookkeeper must understand how the accounting cycle works. During a cycle, the income statement and balance sheets are prepared to summarize the company’s profits, losses, and financial operations during that period of time. The bookkeeper processes and records the company’s financial transactions, and this data feeds into these financial statements. When the accounting cycle closes, the company accountant prepares these statements. The bookkeeper may work with the company accountant during the preparation and there may be some overlap of responsibilities. The information on the income statement and balance sheet is taken from the data provided and consolidated by the bookkeeper from these transactions. Therefore, the bookkeeper must be very accurate when recording the transactional data. The balance sheet and income statement are used by the company’s management to stay apprised of the company’s financial status and health.
General duties and responsibilities of a bookkeeper:
– Record financial transactions accurately into the general ledger
– Enter debits and credits in the accounting system and reconcile accordingly
– Reconcile the general ledger and keep a trial balance
– Reconcile accounts to confirm accuracy of each transaction
– Follow financial compliance laws when recording and reporting financial information
– Keep track of transactions to ensure they stay within company budget, and report variances, if any
Important Skills and Qualifications
– General knowledge of accounting practices
– Understanding of International Financial Reporting Standards
– Accuracy in data entry
– Attention to detail
– Strong organizational skills
– High degree of professionalism and work ethics
– Proficient in Microsoft Excel
– Experience with bookkeeping software such as Quickbooks, XERO, or others.
– Two-year degree or one year of related job experience
In Conclusion
All businesses require a way to keep track of their financial transactions accurately. A bookkeeper is an expert in collecting and entering financial transactions into an appropriate accounting system. This role is essential in producing financial statements and in ensuring that all financial transactions are legitimate and accounted for. This prevents fraud of skimming cash from a business before the money is recorded in the books. A reliable bookkeeper can make sure that all the money coming in and going out are properly recorded.
