Did you know that the average bookkeeper’s salary is about $42,410 per year? If you’re thinking about going into this profession then you might wonder, what do bookkeepers do?
If you’re looking for the answer to this question, then you’ve come to the right place. Read this guide on what exactly bookkeepers do and see why it’s a great career today!
What Is a Bookkeeper?
Some people start thinking about starting a business, and bookkeeping is a great option. Bookkeeping responsibilities include recording journal entries, accounting ledgers, and generating financial statements. You’ll be in charge of keeping the finances of different businesses in order.
What Does a Bookkeeper Do?
You’ll help out with loss statements, reconciliation, cash flow statements, and financial records. Accountants and businesses are able to identify trends and build budgets thanks to bookkeepers.
You might need to order inventory and keep track of when you need to order more, have a general ledger, and enter transactions. You’ll also need to have files in a financial database.
Some responsibilities could include:
- Using bookkeeping software
- Completing payroll
- Pay invoices
- Prepare compliance statements
- Monitor financial records
- General financial reports
- And more
Accountants vs Bookkeepers
Accountants take the records that a bookkeeper provides in order to help businesses take a look at their finances and make financial decisions. Whereas, a bookkeeper will pay and issue invoices, record financial data, and offer the financial standing of a business.
Double vs Single-entry Bookkeeping
If you use a double-entry system, that’ll record the financial transactions into 2 accounts. You’ll have 2 columns, 1 for debit and 1 for credit.
Different Tasks
You’ll need to maintain the books as a bookkeeper. Invoices are an important part of this role including accounts payable or receivable.
You’ll track credit, debit, and different accounts in a ledger. Whether or not you use software it’ll allow you to stay on track with the transactions.
At tax time, you’ll make sure that the tax process goes according to the plan. You’ll also ensure that the auditing process is set up as well.
You’ll also need to monitor changes in equity. This is also known as a statement of retained earnings. This will show the business owner what reserves, capital, and retained earnings that they have.
Understanding Software
It’s a good idea for businesses to hire qualified bookkeepers Gold Coast because them trying to learn the different available software takes time. Once you learn the different software available to you, you can help businesses quicker than performing actions by hand. You can also explain to businesses how time is money and they’re saving by outsourcing.
Answering the Question to, What Do Bookkeepers Do?
After exploring this guide, you should be able to better answer the question, what do bookkeepers Sydney do? Take your time deciding if this career is right for you.
Would you like to read more informative content with businesses in mind? Be sure to check out our other articles on our site today.
