What Does A Bookkeeper Do?

What Does A Bookkeeper Do

Have you heard the term ‘bookkeeper’ before?

Chances are you’ll be aware of it as a role but many people are relatively unclear as to what the job actually entails.

Having a set idea about how a bookkeeper operates within a business could be hugely beneficial to you – as a business owner or private individual.

The Role Of A Bookkeeper

A bookkeeper is generally employed to cover all the financial record keeping for a business. ProAMS, a bookkeeper Adelaide company says that: “Bookkeepers should accurately manage all financial records as well as alerting you or offering insight into any financial issues that may be arising within the business.”

Nowadays, the majority of bookkeepers use accounting software in place of keeping records by hand.

Specific roles carried out by a bookkeeper include:

What Does A Bookkeeper Do

  • Data Entry: it is the role of the bookkeeper to enter all financial transactions into whichever system your company uses. This should be done on a regular basis and all transactions must be allocated into the correct accounts within your accounting software.
  • Report Production: Bookkeepers should use data inputted to produce reports on a regular basis (usually weekly or monthly). These can provide useful information and can be used to identify progress or problems. Analysis of these reports will be beneficial to your business.
  • Invoicing: In order to ensure cash flow is kept at its optimum, invoices should always be sent promptly by a bookkeeper who should ensure that money is then collected from customers. Late payments should always be chased up to avoid a backlog of debtors.
  • Tracking Expenses: In any business, it’s essential that all expenses are recorded. Purchase orders and receipts should always be kept and checked against amounts spent. Petty cash and credit card purchases will also be tracked by a bookkeeper.
  • Financial Reports: A bookkeeper should provide a business with financial reports which detail vital information such as profit and loss, balance sheets, budgets and future forecasts. Similar to weekly and monthly reports, these larger scale reports will help you to continually improve your business and avoid pitfalls.
  • Payroll: Employing staff is a huge responsibility and you must ensure that they are always paid on time. This can become a time consuming task as your business grows therefore a bookkeeper can save huge amounts of time by taking over this process.
  • Xero: All good bookkeepers use Xero to process your accounts these days.
  • Banking: nowadays, the majority of software bookkeepers use will link directly with your business’s bank account. However, a bookkeeper can be hugely helpful in keeping you updated with banking information as well as always reconciling bank transactions to the accounting system.

Skills of a Bookkeeper

  • Strong Financial Background and Training
  • BAS registered (this will ensure that they can prepare your BAS in line with Australian Tax Office requirements)
  • Good IT skills
  • Excellent attention to detail
  • Honesty
  • Reliability

As you can see the role of a bookkeeper is varied and interesting, often holding large amounts of responsibility.

Bookkeepers work in all sorts of businesses, from large to small and corporate to independent.

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How Can A Bookkeeper Improve Your Business?

How Can A Bookkeeper Improve Your Business

Do you feel as though you are constantly juggling tasks?

As a business owner, are you always chasing your tail and finding yourself struggling to grab enough hours in the day?

There are many elements of your business that require your attention, especially the financial reporting side of things.

However if you’re keen to free up more hours in your day, help could be at hand if you decide to hire a bookkeeper.

As a member of the UK Bookkeeping Association (http://www.bookkeepers.org.uk/), we can definitely help!

Yet Another Cost?

Far from it.

No, bookkeepers don’t work for free, however the money that you could save from hiring a good bookkeeper may well be worth it.

It’s a mistake often made by business owners that they can save money by doing their own books – yet once things get busy it’s all too easy to neglect these or let things get delayed, with problems building up that could end up costing you huge amounts of money.

How Can A Bookkeeper Help?

How Can A Bookkeeper Improve Your Business

  1. Order, Order
    A Bookkeeper is trained to ensure that all business finances are in order. They’ll ensure that all of your financial records are correct and are always kept up to date.  As it’s a legal obligation to always accurately record all of your company’s accounts, it’s essential that you have this area of business taken care of.By employing a bookkeeper to ensure everything is in order, it should help to free up huge amounts of time for you, as a business owner, to spend concentrating on the areas you want to invest in or that require your attention.
  2. Taking Over Tasks
    Bookkeepers can help to take over tasks that are time consuming and tedious for you. If your company is expanding and you have employees working for you, you have a responsibility to always pay them correctly and punctually.From checking timesheets to calculating superannuation, there’s a huge amount of work that goes into this. Handing it over to a bookkeeper will allow you to focus your attention where you can really maximize your skillset. To find a qualified bookkeeper, check out: www.iab.org.uk
  3. Heads Up
    You should use your bookkeeper as an extra pair of eyes. Any good bookkeeper will be able to quickly identify when potential issues may arise, or recognize when certain areas of the business are flourishing. Always work closely with your bookkeeper – listening to their expert advice and regularly checking into hear their view of how things are looking financially.
  4. Keep The Cash Flowing
    By keeping a close eye on facts and figures, as well as sending invoices promptly and chasing up on late payments, a good bookkeeper should be able to help you keep your cash flow healthy. By tracking all expenses and regularly recording data in specialised accounting software, you should avoid sudden cash flow problems from occurring.
  5. Reports Rule
    Financial reporting is essential for gaining insight into how your business is performing. Your bookkeeper should provide reports, detailing profit and loss, balance sheets, budgets and cash flow forecasts, on a regular basis. Review these to learn which areas of your business are not cost efficient, which need improvement and which ones are performing well.
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