What is a Bookkeeper?
You may be wondering what a bookkeeper is? What do they do exactly? This blog post is dedicated to breaking down what exactly a bookkeeper is and what they can do for you. Quite often we have titles and terms that are never actually defined or embellished upon. I find bookkeeping to be one of those terms! Most people have a basic understanding of what a bookkeeper is but don’t realize the large scope of tasks and responsibilities that they can actually take on. First let’s define what a bookkeeper is:
Bookkeeper: One of my favourite and most easily laid out definitions is “A bookkeeper is usually employed by a small to mid-size company to record its transactions such as sales, purchases, payroll, collection of accounts receivable, payment of bills, (source).” This could be the job for you if you have a knack for numbers and what they mean. “If you understand math, have a head for figures, and like to keep track of how everyone spends the company dime, you might be ready for a bookkeeping job. Bookkeepers, or bookkeeping clerks, work with a company's accounts, making sure that every transaction, deposit and income is recorded in the company ledger, (source).”
As you can see the responsibilities are vast when it comes to bookkeeping and as the bookkeeper you are deeply trusted by a variety of companies to keep essential figures and documents in order. The next question is what exactly does a bookkeeper do? Bookkeepers use software to track important numbers, sometimes take in cash and checks, and record all essential transactions. Bookkeepers are also required to produce reports that aid in management and ensure all discrepancies are reconciled. The next step to gain an understanding of what a bookkeeper does is to provide an example of a typical day. Bookkeepers are responsible for “Maintaining and updating financial records is a daily task for most bookkeepers. This usually includes balancing and updating bank accounts to ensure that all payments and deposits have been accurately reported, (source).” Another aspect of this is communication with coworkers. By being a strong communicator everyday companies are able to run much more smoothly. “Bookkeepers must maintain and balance financial records daily, including transactions from coworkers. It can be difficult to record those daily transactions if they don't communicate well with staff, (source).” The last daily task is budgeting and inventory. The bookkeeper should be in contact regularly in order to keep a track on inventory and daily expenditures as well.
I hope I shed some light on what exactly a bookkeeper is and what they can do for you. Utilizing a bookkeeper can be one of the best decisions you ever make as they can save you time, headaches and money. Having a professional balance your books ensures they’re done correctly and that any mistakes are caught. Contact me to book a consultation, or ask a question you may have about having a bookkeeper.