Generally, bookkeepers reconcile the financial accounts of a company on a monthly basis in order to record a company’s expenses, income, and transactions. Additionally, they might prepare financial statements and reports. Despite the fact that businesses can employ bookkeepers on a part-time basis rather than on an in-house basis, most of them engage bookkeepers as freelancers.
In order to meet the needs of various businesses, bookkeepers can wear many hats. To that end, most bookkeepers in today’s world use accounting software to record their transactions. Bookkeeping services can also handle a few things for your business that almost everyone can handle. Bookkeepers play a variety of roles, but there are some tenets that underpin their activities.
You might also wonder if you need a bookkeeper if you’re wondering what a bookkeeper does. You’ll learn about the tasks that a bookkeeper is responsible for, how to find a good bookkeeper, and the rates bookkeepers charge.
What is the role of a bookkeeper?
This question can’t be answered in a simple way. Bookkeeping can vary from one business to the next, just like any other profession. In general, the following tasks are handled by bookkeepers:
- Keeping financial records
- Accounts must be reconciled
- Managing feeds from banks
- Manage receivables
- Manage the accounts payable process
An overview of what a bookkeeper does is as follows:
Bring Your Bank Accounts in Line
Bookkeepers are responsible for reconciling your financial accounts, which is their most crucial duty. During your accounting software reconciliation, you ensure that transaction details match those displayed on your bank statement, credit card statement, and other financial accounts statement.
Keep your accounts reconciled to avoid overdraft charges, fraudulent charges, or mistakes with your records. Reconciliations are easier to accomplish using accounting software, but a human touch is still needed to ensure that all transactions are accounted for correctly.
Handling bank feeds
The basic responsibility of your bookkeeping service or bookkeeper is to manage the transactions coming into your accounting system through the bank feed. You can view each transaction in real time thanks to bank feeds that link your accounting software to your business bank account.
In some cases, accounting software should be able to automatically categorize transactions based on how efficiently it performs. Travel expenses are automatically classified as credit card transactions from an airline, for example. In order to ensure that these transactions are classified correctly, bookkeepers keep an eye on them.
Any transactions that don’t appear on the bank feed may also need to be manually added by the bookkeeper. Most likely, the transactions that must be added will be those generated outside of the accounting system, like cash payments or checks written by hand. A matching deposit could be made as payment for accounts receivable or a payment against a vendor bill could be made as payment for outgoing transactions.
Manage the accounts receivable department
It is possible to manage accounts receivable in a few different ways. In small businesses, employees may enter their own estimates or invoices, and they may receive payment based on those invoices.
Another option exists, however. Using a program designed specifically for estimating jobs, the client calculates the job total, then provides it to the bookkeeper. Afterwards, they enter estimated amounts into QuickBooks Online and generate invoices as the project progresses.
As part of our A/R services, we create invoices, send them to customers, provide statements, and assist in collections. After the customer informs the bookkeeper when they have been paid, the bookkeeper enters that payment in QuickBooks Online, after which the bookkeeper creates a deposit to match the bank deposit.