What does a bookkeeper do?

Posted on October 13, 2022.

Keeping books is just one of the tasks modern bookkeepers might handle. Here’s a breakdown of bookkeeping duties.

Responsibilities of a bookkeeper

Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. They’re always taking the pulse of a business.

Most often, their reports go to business owners and managers to help them make decisions. Some bookkeepers, however, are actually involved in strategy development.

Bookkeepers may also share some jobs with accountants, such as the preparation of annual financial reports and tax returns.

Bookkeeping duties

The two foundational tasks in small business bookkeeping are data entry and bank reconciliation. Without these, all other bookkeeping tasks fall over. Let’s walk through the core duties, common additional duties, and advanced bookkeeping.

Core duties

• Data entry: Recording financial transactions and balancing the books. 
• Bank reconciliation: Cross-referencing the books against bank statements and other source documents to confirm accuracy. 
• Monthly reports: Summarising the business’s financial position. 
• Additional duties
• Accounts receivable (and credit control): Creating and sending invoices, and following up to get them paid. 
• Accounts payable: Making sure invoices from suppliers are accurate and paid in a timely manner. 
• Payroll: Calculating pay and deductions. 
• Advanced duties
• Tax filing: Preparing tax returns. 
• End of year reporting: Assisting with annual profit and loss and balance sheet reports.
• Business strategy: Creating budgets and forecasts, and advising on how to improve the business.
• Business process: Reviewing, researching and implementing software solutions and internal controls to streamline the business and enhance performance.
• Training: Working with staff on best practice bookkeeping and use of software solutions.
• Virtual office: Providing a full-service virtual office, for example telephones, postal address, and email communications.
• Liaison: Meeting with accountants, on behalf of their clients, about financials and tax queries. Acting on behalf of the client with the tax authorities.

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