What is bookkeeping?by JAMES BAILEY Accounting & Bookkeeping Services
Bookkeeping focuses on the right recording of monetary transactions for your business. Usually, your bookkeeper would use double-entry accounting to record all of your financial transactions. Double-entry accounting means for each debit you create, a corresponding credit must be made.
Graph with ledger book that lists a bookkeeper's primary responsibilities
A bookkeeper’s primary responsibility is recording daily financial transactions.
While they mainly record financial transactions, bookkeepers are liable for a spread of duties, which are important for maintaining a successful business.
Organize and categorize transactions: This includes reviewing incoming bills for accuracy and preparing them for payment.
Write invoices: It’s impossible to urge paid if your customers never receive an invoice. Bookkeeper responsibilities include tracking sales and writing invoices for goods and services provided.
Pay bills: Small businesses got to maintain an honest relationship with their vendors, which is why paying bills by their maturity is so important.
Record customer payments: Recording customer payments promptly ensures that your assets balance is accurate which you don’t send a past-due notice to a customer when they’ve already paid.
Maintain petty cash: With company credit cards, a fund account isn’t as important because it once was, but if your company still has one, it’s the bookkeeper’s job to make sure that the funds are managed and disbursed properly.
Reconcile bank statements: An often overlooked task, regularly reconciling bank statements reduces potential errors and provides you with an accurate bank balance monthly.
Enter month-end adjusting entries: While online bookkeeping services and bookkeeping software has reduced the amount of journal entries needed, there are likely to be month-end adjusting entries needed to account for expenses like depreciation, interest expenses, bank charges, and other items which will are skipped.
Prepare financial statements: While it’s the work of an accountant to research financial statements, it’s often the bookkeeper’s job to organize financial statements on a monthly, quarterly, or annual basis, counting on company needs.Bookkeepers also can be liable for other tasks like reviewing expense reports and assisting in preparing a budget. A bookkeeper’s job is a crucial element for any small business, and it shouldn’t be underestimated.
Created on Jan 7th 2021 01:36. Viewed 144 times.