Hiring a bookkeeper helps your business save time and money and it will save you some headache in the future.
Bookkeeping, just like any other parts of your business process, plays an important role in your daily operations. Being able to keep track of financial transactions in and out of your business helps you in evaluating your overall financial performance.
While a lot of people usually refer to bookkeeping as accounting, it actually has its own distinct roles. Bookkeeping in general is focused on administrative tasks while accounting summarises and analyses all financial transactions recorded.
What is bookkeeping?
Bookkeeping is basically about keeping and maintaining records organized and up to date. In most cases, each business has its own accounting system. Depending on the system used, all financial transactions must be recorded according to their supporting documents. These supporting documents may be in a form of invoices, wages, purchase orders, bills, and receipts.
In some cases, businesses usually make use of Microsoft Excel Spreadsheets for their record keeping. However, a lot of businesses nowadays prefer to use software programs as it is more effective and convenient. Bookkeeper’s nowadays make use of a single entry system or double entry system to record all transactions.
Roles of a bookkeeper
A lot of businesses do not succeed because they usually fail to keep track of their overall finances. Take note that by law, businesses are required to have accurate and transparent records that are within the guidelines of our governing law.
Hiring a bookkeeper helps your business save time and money and it will save you some headache in the future.
In terms of hiring a bookkeeper, there isn’t really a required bachelor’s degree to become one. Some businesses hire people with a high school diploma as long as they are able to perform the given tasks efficiently, while others require a bookkeeping certification.
A bookkeeper should be well organized, must be proficient in using spreadsheets, and software programs that are used in record keeping. More so, a bookkeeper must have the proper knowledge on the terms used in bookkeeping.
A bookkeeper is also responsible for the following:
- Prepare payroll on a timely manner
- File tax returns
- Perform other clerical and administrative duties to support the management
- Perform data entries of all payments, receipts, and other financial transactions
- Prepare financial reports
- Prepare financial statements
- Issue invoices for payments that is owed to your business
- Make bank deposits for payments that are issued to your business
- Conduct bank reconciliations
- Ensure that your business follows all accounting procedures and policies
- Ensure that your business complies with all government requirements
