What Does a Bookkeeper Do Exactly? Duties & Responsibilities of Bookkeepers
What would happen if there are no bookkeepers? Can't imagine right? Off course! It is impossible to handle without a bookkeeper in the financial sector.
If there is a business then obviously bookkeeper's duties play a vital role. Whatever you buy or sell the product, software, or in consultations there must be a record for all the selling and the products which you purchase. Let us dive in brief about the bookkeeper duties.
Bookkeeping is those in which they keep up the records of financial transactions. The main thing we should be very clear about is bookkeeping is a part of Accounting. In bookkeeping, we maintain the financial records in a daily format like sales, receipts, and all the payments done in the management. To know the difference, click the bookkeepers and accountant link.
Before, we used to maintain the records in file format. Where there are high possibilities of doing error and it is very hard to search the data when we need particular details.
Later it comes in software where the time consuming and the records are very safe to maintain. It is very easy when we search for the data as well.
Preceding we get into what a bookkeeper does? we will see the little ancient facts about the bookkeeper.
Chronology of bookkeeping
In the ancient days, the accounting records have been found in Mesopotamia, Assyria, Sumeria, and Egypt. When we moved to the agricultural society, structure and hierarchy were introduced, and the need for accounting including the auditing system has been born.
After the birth of the monetary economy, the merchants start depending on bookkeeping for the transactions financed by the bank.
Luca Pacioli was the mathematician who has published the book at Venice in 1494 and in that book, he included a 27-page section on bookkeeping. It made a majestic growth in bookkeeping. At that time, they were entering the financial data in the book.
Later in the 20th century there comes the revolution of technology in various sectors. One of the highly benefited sectors is Accounting. Here gradually the files and books start getting reduced and the entries are added into the software system.
What does a bookkeeper do?
When we hear a word bookkeeping the idea runs in our mind is what does a bookkeeper do? Yeah here is the answer for that. Bookkeepers are those who categorize income and expenses.
For example, we need to pay the taxes on time in which the amount spends in multiple ways. The customer does not have the time to note all the payment information because they will be in the mindset of growing the business to the next level.
For growing the business, the budgetary plays an essential role. They need mankind to aid them in financial entries. Here comes the bookkeeper.
The bookkeeper maintains all the reports of a client who spends their expense in debit or credit. They enter every transaction done by the client on the daily basis. They are responsible to do the bookkeeping duties.
*They categorize the list of splurges done by the client. We use the software by linking the clients account in it and maintain daily transaction. After linking we maintain the details and send the report of spending to the client so that he knows the utilized amount.
*They check the payments and if there are any bills to be settled, we are in-charge to look after the payment to be settled on time. We are responsible to settle through check or whatever process is done as per the client's comfort.
*If any client is yet to receive money on the given date you should take of the process and give a reminder to the concerned person.
*Monitor and maintain your annual budget and report issues and variances that occur.
*We prepare the financial statements for the clients.
*Submitting the reports as per the client requirements.
Pro fact of bookkeeper duties
1. Permanent Record & Arithmetic accuracy
*Bookkeeping provides us a permanent record for all transaction business.
*Bookkeeping replaces the memory and stores it permanent.
*It keeps the data safe and reliable.
*With the help of a bookkeeping trial balance is easily prepared.
* We can know exactly about the arithmetic accuracy.
2. Business Operations
*We can exactly know about the business operation.
*By using bookkeeping, we can find the exact profit and loss in the operations.
*Not only profit and loss we can able to know the financial positions also.
*Knowing the financial positions, we can plan for the additional business as well.
*By having bookkeeping, we can prepare the financial statement and can analyze the statement for the comparison of previous years or months.
*It shows the growth with the help of bookkeeping.
*Bookkeeping does not satisfy short-term goals alone Instead it is focused on long-term goals as well.
3. Computerize and control
*Calculating the accounts benefit us to check the pending bills to be paid.
*We can check the pending payments to be received by maintaining bookkeeping.
*We can have a control in assets when we maintain bookkeeping. By analyzing the additional spends we can control the unwanted spending as per our business needs.
*By maintaining bookkeeping, we can control the borrowings from the banks or any credits we receive from the vendor.
4. Identifying Do's and Don'ts
*Bookkeeping can give a clear idea of what to do and don't.
*If we maintain bookkeeping correctly, we can do periodic analysis in various aspects.
*Possible to focus what to purchase as per our need and within our budgeted plan.
*Can parse and then do the purchase, sales, expenditure, and income.
5. Decision making and Taxation
*In taxation businessmen have to pay the taxes on time to avoid the additional levy.
*Bookkeeping maintains all the transactions from the scratch and submits the accounts without any carelessness.
*While we proceed to the next step, we need to review the documents or statements and then have to revise if any mistakes occur.
*It controls or identifies the mistakes in the review session.
*Records and reports are the main things to make decisions as well.
*If there is a case filed or we filed a case against the vendor the records in the bookkeeping are the proof.
As an end bookkeeping is a must in the field of accounting. If we run a business bookkeeping is the only solution to solve all the critical issues. The plays in various field.
Hence Calman Analytics provides you with massive growth in the business by rendering the bookkeeping services as an outsourced service globally.
If you are curious and browse for bookkeeping, Calman Analytics is the only solution that can solve the critical facts with the team of experts.
If your organization looking for a Bookkeeping outsourcing service then why are you overthinking? Just Visit Calman Analytics for more information and how it benefits your organization to get succeed.