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:
- 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
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.