What does a bookkeeper do?
What Is A Bookkeeper
A bookkeeper is an individual who is in charge of keeping records for small to medium-sized companies. The types of documents that the bookkeeper is in charge of keeping are sales records, accounts receivable records, bill payment records, payroll records, and any purchases made by the company. Calgary Bookkeepers are under the supervision of an accountant or business owner. When a bookkeeper completes their work, they will present the final financial records to the accountant or business owner to double-check the document and make any corrections.
The Duties Of A Bookkeeper
Accounts receivable is when a company is owed money from a business transaction. It is counted as an asset on the business balance sheet because it will be paid to the company in the short term. A company will let another company or individual purchase their goods and services on credit.
Processing invoices is done with payments received by a company, and invoices are also processed for expenses that a company incurs. Whether the invoices are for payments received or made, it is the job of the bookkeeper to process the invoices promptly and accurately. Managing invoices is vital to any organization, regardless of size, because it is a crucial part of managing a company’s cash flow.
Payroll processing is the process of managing a company’s employees’ wages. There are different aspects of payroll processing, and they collect every employee’s time for the time frame for which he or she worked. After the time is collected, each employee must be processed so they are paid accurate wages. Managing the employee’s benefits and deductions is also a part of payroll processing.
Reconciling account balances is a process that is usually done at the end of an accounting period. Companies typically keep two sets of financial records, which are compared or reconciled to ensure that the money the company spends is correct. Reconciling account balances ensures that the money leaving the company is spent on services for the company and not diverted elsewhere.
Qualities Of A Good Bookkeeper Or Bookkeeping Company
One of the best bookkeeping companies in the United States is Walker Hill Bookkeepers. This company displays all the qualities a competent bookkeeper or bookkeeping company should have. The following are essential qualities of a skilled bookkeeper:
- understanding of financial statements
- business sense
- understanding credits and debits
- should be detailed
- should be accurate and efficient
- have the ability to adapt to changes in technology
A bookkeeper may not be an accountant or have a degree in finance, but they are still a vital part of an organization’s financial success. They are essential to an organization’s financial success because they handle important aspects that keep a company running successfully, such as reconciling account balances, managing accounts receivable, processing payroll, and processing invoices. This is why it is important for a company, big, medium, or small, to vet bookkeepers properly. This vetting will ensure that a company hires a skilled and competent bookkeeper or bookkeeping company.