Bookkeeper Duties Checklist: Are You Bookkeeper Material?
What does a bookkeeper do? This is a
question I get asked all the time and there’s no simple answer.
Bookkeepers have a lot of responsibilities.
For many people there is a lot of confusion between bookkeepers and
accountants. On the surface, it seems like the same job because both
jobs require dealing with the finances of the company. I often get
called an accountant even though I’m a bookkeeper.
A
bookkeeper’s duties
involve more of the day to day aspect of a
company’s books, whereas an accountant generally only looks at the books
at year-end to do adjusting entries and the tax return.
So to clarify bookkeeping, here is a list of things a bookkeeper does on
a monthly basis:
Bank Reconciliations:
Every month the bookkeeper goes through all the deposits and withdrawals
that went through the bank and reconciles them to make sure everything
balances. This is one of the most important jobs for the bookkeeper
because if there’s any fraud happening, the bank account will usually be
the first place that it appears.
Payroll:
Depending on the size of the company, one of the bookkeeper’s duties
will involve doing payroll for its employees. The bookkeeper needs to be
familiar with government regulations regarding deductions as well as
laws pertaining to employees. Many times an employer is not familiar
with these laws so it’s up to the bookkeeper to inform them to avoid
potential legal issues.
Accounts Payable:
The bookkeeper usually handles keeping track of vendor invoices that
come in and pays them before they are due. Depending on the size of the
company, sometimes the owner will do this himself and the bookkeeper
will just post these paid invoices at month-end while doing the bank
reconciliation.
Accounts Receivable:
In order for a company to thrive, it must have an income. So a
bookkeeper’s duties usually involve posting the accounts receivable in
one way or another. Some companies invoice clients and others receive
cash that must be tracked and deposited. Many times tracking daily cash
sales involve using spreadsheets.
Inventory:
If a company’s business involves inventory, it’s up to the bookkeeper to
keep track of it in the accounting program. Inventory is affected by
purchases the company makes as well as the income the company generates.
Periodic inventory counts have to be done to make sure that everything
balances so adjustments can be made.
That’s the basic list of things a bookkeeper does. Some companies are so
large that they have different people handling various aspect of each
bookkeeping job on a fulltime basis. Other companies are so small that
these jobs can be easily done in a few hours a month.
