A bookkeeper is in charge of keeping track of all financial activities for a company, including purchases, outlays, sales income, invoices, and payments. The general ledgers, which are used to create the balance sheet and income statement, will be utilized to record the financial information.
The first six phases of the accounting cycle are often overseen by the bookkeeper, while the latter two are typically handled by an accountant. Although there is some broad overlap between the two professions, this article will go through a few differences.
Bookkeeper Job Description
The main qualities that companies look for in candidates for this role are consistency, accuracy, and a reduction in mistakes. Understanding how to utilize accounting software systems and having a working knowledge of accounting are essential.
A bookkeeper oversees and reconciles hundreds of financial transactions for bigger firms. Technology literacy is crucial for the job as this is frequently accomplished with the aid of numerous software programs. Other necessary abilities and work responsibilities include the following:
Relevant Knowledge and Skills
- Grasp of accounting basics
- Accounting best practices knowledge
- IFRS, U.S. GAAP, or another accounting framework expertise
- Abilities with data input
- High level of detail
- Microsoft Excel proficiency Produce work with a high degree of accuracy
- Professionalism and aptitude for planning
- One year of experience or an associates degree
- XERO, Quickbooks, Fresh Books, Zoho, or other program knowledge
Job Responsibilities and Duties
- Keep thorough records of all financial transactions
- Update and keep the general ledger current.
- Reconciliation of accounting system entries
- Debits and credits are recorded
- Maintain the trial balance using a general ledger reconciliation.
- Account reconciliation to verify transaction correctness
- Utilize your understanding of local legislation to adhere to reporting obligations.
- Track any deviations from the estimated spending plan.
Salary Levels for Bookkeepers
In the US, a bookkeeper might anticipate earning a salary between $30,000 and $60,000. However, pay will vary greatly based on the business, the area, and the candidate’s background. Larger businesses often pay their bookkeepers better; this is partly because of the higher amount of transactions and data. A tiny firm could carry out less than 100 transactions every day, compared to hundreds per second for a global organization.
Both bookkeepers and accountants often start out making about the same amount of money, however as accountant advances in their profession, their earning potential increases. Experienced bookkeepers frequently switch careers to pursue careers in accounting or other fields. Due to their frequent interaction with raw data, bookkeepers frequently have a thorough grasp of how businesses operate.
How Does Bookkeeping Operate?
Generally speaking, bookkeeping functions by keeping an accurate and up-to-date record of a business’s financial data. However, a company may take into account a number of important factors before implementing suitable and effective bookkeeping procedures. For instance, choosing the accounting system that will be used by a business is a crucial aspect of how bookkeeping functions for that firm. The following important factors can play a role in a number of various ways bookkeeping functions in a firm.
(a). Choosing an accounting technique
Regardless of the accounting strategy a company adopts, bookkeeping complements it. For instance, a business may opt to record each transaction as it happens using the accrual foundation of accounting to keep track of incoming and outgoing cash and credit. When using the cash flow method of accounting, a bookkeeper would only record transactions that involved the exchange of cash. A company can analyze its financial records after deciding on its accounting approach in order to set goals that will help it expand.
(b). Evaluating the success of aims
Monitoring the financial progress towards sales and profit targets is another way that effective accounting works. For instance, a bookkeeper might monitor sales volume and frequency as well as the profit margin for accounting periods that have been recorded to better evaluate the tactics a company can employ to support the achievement of its financial objectives.
(c). Maintaining accounting records
Additionally, bookkeeping manages all of a company’s financial records. Accounting done correctly enables organizations to maintain accurate records about their entire financial state and health. This information may be crucial for securing funds, making investments, and demonstrating overall profitability.
Best Websites For Bookkeeping Jobs:
Fiverr can be the ideal website for you if you are just getting started in the bookkeeping industry. This website is a fantastic resource for finding freelance work and beginning to develop your portfolio.
UpWork, like Fiverr, is a fantastic platform for finding freelance employment in the accounting industry. You may provide a variety of bookkeeping services to clients on UpWork or submit bids for them.
3. H&R Block
A global provider of tax preparation services is H&R Block. But not all of their positions are far away. It is therefore important to often check their website for any opportunities.
This website offers a lot of options, making it an excellent location to locate remote accounting employment. They provide a range of job advertisements, but if none of them match your qualifications, be sure to return and look frequently.