The role of a bookkeeper brings a number of responsibilities and specific duties.
It follows that people who are attentive to detail and committed to the tasks of the position do well as bookkeepers. A range of financial courses and specific bookkeeping courses can suitably prepare people for this role and equip them with the required skills and knowledge.
The main task of a bookkeeper is to maintain the books of the business that they work for. More specifically, when the company makes a transaction of any type, the bookkeeper is required to record this. Not only does the bookkeeper record funds entering the business, they are tasked with the very important duty of maintaining the bills and expenses of the business.
The bookkeeper will also be closely involved with the preparation of a business’ end of financial year reports and quite possibly, tasks related to the payroll. Bookkeepers are also required to monitor whether there have been errors in the recording of accounts, including the bank and cash books.
They may also undertake tax calculation, debt collection and the analysis of financial statements.
Depending on the company, it is possible that the bookkeeper will work with or as a finance manager and thereby undertake tasks related to purchase and procurement of resources and the costs of production.
What does an effective bookkeeper need?
- To know and understand accounting practices, the Generally Accepted Accounting Principles (GAAP) and tax laws of the country in which they work
- Appropriate financial training, such as a certificate in bookkeeping. Financial courses particular to the role will benefit the individual
- Computer literacy and be able to demonstrate competence in using accounting software
- To be familiar with data management and financial data analysis software, which are often used to analyse financial statements and data
- Willingness to carry out a range of functions and awareness that salary often reflects the range and complexity of tasks undertaken
What are the tasks of a bookkeeper?
As we have mentioned above, there is quite a range of tasks that bookkeepers perform. These include:
- Financial monitoring, reporting and analysis – preparing budgets, handling accounts, carrying out the banking, maintaining financial ledgers, paying bills, preparing financial statements and reports, providing receipts for money entering the business, reconciling bank accounts, distributing money across departments, collecting funds and preparing payroll.
- Purchasing materials and equipment – receiving requests for materials and equipment, preparing purchase orders, liaising with vendors, inspecting items received, following up on any problems associated with delivery, handling purchase order paperwork following the purchase and delivery of items.
- Invoicing and organising for payment of vendors for materials received by the business – raising invoices and paying vendors for delivered materials, ensuring that all details on invoices are correct, reviewing invoices and if required, adjusting any prices.
- Provision of inventory support and stock control – maintaining office resources and supplies at levels that are required to sustain operation of the business, entry of new equipment into into asset information systems, ensuring that data is entered into the inventory and preparing inventory reports and accounting for fixed asset equipment that is the property of the company
- Clerical and administrative tasks – entering data, typing, generating work orders, managing telephone calls and mail systems, maintaining files, installing software programs and preparing correspondence and reports.
As you can see, bookkeepers may be required to carry out a variety of tasks in a range of contexts. The actual tasks undertaken will very much depend on the size and nature of the business and the workforce that it has. Having said this, the skills pivotal to the role of bookkeeper can be summarised as:
- Communication skills – to communicate with employees, vendors and suppliers
- Computer skills – to use, operate and even install software
- Leadership skills – to support management and colleagues
- Manual skills – typing, filing, storing and removing data and records
- Planning skills – budgeting, scheduling and preparation of forecasts and reports and time management skills
- Mathematical skills – to monitor and balance accounts, perform required calculations, cross-check invoices, receipt and deposit funds and balance accounts
- Software and word processing skills – to maintain records, document queries and prepare reports
The tasks of a bookkeeper can be varied and range in levels of complexity, depending on the company and its requirements. However, bookkeepers require specific qualifications, knowledge and skills in order to effectively carry out their duties. Financial training and financial courses can appropriately prepare people to undertake this role but fundamentally, excellent organisation and attention to detail are required.
