Definition and Nature of the Work Of A Bookkeeper
Bookkeepers keep financial records that track a company’s expenditures, profit and loss, cash flow, and other financial activities. They work in the accounting departments of their companies and deploy database and spreadsheet computer programs to do their record keeping.
Role Of Bookkeeper in Different Sizes Of A Company
In a Small concern:
Normally, in a smallish company, there is only one GENERAL bookkeeper entrusted to do every thing pertaining to the bookkeeping and accounting of the company. They are called a full-charge bookkeeper.
Their role involve:
• General bookkeepers verify and enter into ledgers the details of their firm’s financial transactions.
• They then summarize these details in a general ledger.
• Periodically, a general bookkeeper balances the books.
• When the books are balanced, it is possible to tell at a glance how much cash has been spent and how much received, what the company owes and what is owed to the company, and whether the company has made a profit or suffered a loss.
• In addition to keeping records, general bookkeepers may prepare payrolls, tax reports, and customers’ monthly invoice statements.
Bookkeeper in a Medium to Large Company:
Large firms break down the bookkeeping responsibilities into specialized areas. Each area is handled by one or more bookkeeping clerks, also called accounting clerks, who are supervised by a head bookkeeper.
For example, usually the structure is as follows:
• Accounts receivable clerks are responsible for the ledger that records the firm’s sales of goods and services, whereas accounts payable clerks are responsible for the ledger that records the firm’s purchases of goods and services. Auditing clerks check records posted by other workers to make certain they are correct.
Increasing Work Load Or Role Played By The Bookkeeper
The widespread use of computers and bookkeeping programs has dramatically cut down on the amount of time required for bookkeepers to perform their bookkeeping duties. As such, many offices now require bookkeepers to take on additional responsibilities, such as payroll, customer service, or billing.
The main duties of a typical bookkeeper:
• Keep financial records and establish, maintain and balance various accounts using manual and computerized bookkeeping systems
• Post journal entries and reconcile accounts, prepare trial balance of books, maintain general ledgers and prepare financial statements
• Calculate and prepare cheques for payrolls and for utility, tax and other bills
• Complete and submit tax remittance forms, workers’ compensation forms, pension contribution forms and other government documents
• Prepare tax returns and perform other personal bookkeeping services
• Prepare other statistical, financial and accounting reports.
Employment requirements
• Completion of secondary school is required.
• Completion of a college program in accounting, bookkeeping or a related field or Completion of two years (first level) of a recognized professional accounting program (e.g., Chartered Accounting, Certified General Accounting) or Courses in accounting or bookkeeping combined with several years of experience as a financial or accounting clerk are required.
Education and Training Requirements
A high school education, with emphasis on business math, bookkeeping, and accounting, is needed to get a job as a bookkeeper. Some employers prefer to hire junior college or business school graduates for the position of full-charge bookkeeper. Good performance in business subjects such as business software, typing, accounting, bookkeeping, and business mathematics is an asset. The ability to use a computer is essential, and knowledge of basic spreadsheet and database programs is helpful. Many employers prefer to train bookkeepers themselves. An aptitude for mathematics and the ability to concentrate on detail are basic requirements. Once on the job, a bookkeeper with some business education beyond high school will have a better chance for advancement.
Additional information
• Progression to professional accounting occupations is possible with additional training.