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The scope of a bookkeeper’s duties and responsibilities
depend on the size of the business organization or establishment,
and the way its accounting operation is set up. In a larger
organization the bookkeeping function is generally split up
into different areas of accounting, such as accounts payable,
accounts receivable, payroll, general ledger, and possibly
fixed assets or property. In this type of environment, a bookkeeper
will generally have a clerical or accounting position, and
will specialize in a certain aspect of bookkeeping. In a smaller
establishment, there may be just one full-charge bookkeeper,
with much broader duties and responsibilities, who basically
takes care of all the operation’s financial activities.
These two different scenarios – accounting clerk or
full-charge bookkeeper – create different work environments
and require different sets of abilities, training, and experience.
Takeaways
- A accounting clerk may start out with a high school
diploma or assiciate's degree.
- Bookkeeping is often a multi-tasking position.
- Many job openings require a working knowedge of,
and experience in QuickBooks.
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What Does a Bookkeeper Do?
A bookkeeper working as a clerk in the accounting department
of a large organization or establishment generally works with
business documents and information systems - entering data,
reviewing reports, assembling and organizing documentation,
and maintaining electronic and physical files. The bookkeeper,
or accounting clerk, is generally the person responsible for
the original entry of data on business transactions into the
accounting system. These books of entry include the purchases
and sales journals, the cash receipts and disbursements journals,
the payroll register, and the general journal where entries
are made to capitalize construction project costs, record
depreciation, amortize prepaid charges such as insurance,
and accrue expenses that have been incurred but not yet paid
or invoiced. In addition to entering financial data in the
original books of entry, the bookkeeper also reviews reports
that are output from the system, to verify the accuracy and
completeness with which the business transactions were recorded.
The bookkeeper or accounting clerk may have other duties
including generating checks, getting signatures on checks,
mailing out checks to vendors, checking the incoming mail,
logging in checks received, preparing bank deposits, ordering
office supplies, maintaining files of invoices with their
supporting documentation and check copies, reconciling statements
received from vendors to the accounts payable subledger, reconciling
customer statements to the accounts receivable aging report,
doing bank reconciliations, and dealing with customers, vendors,
and other parties on the telephone, to answer their questions,
provide them the information they need, or to resolve issues.
In an accounting department in which the different bookkeeping
functions are divided up, for example, between accounts payable,
accounts receivable, and payroll, the overall responsibility
for the bookkeeping as a whole will probably rest with a general
ledger accountant, senior accountant, or some similar position.
This person will review the work of the bookkeeper, or accounting
clerk in each individual area, and will pull all the areas
together to produce the general ledger, trial balance, and
financial reports.
In a smaller establishment, the bookkeeper will generally
be responsible for recording all transactions. There may be
an independent accountant who periodically reviews the books
and prepares financial statements and tax returns, or the
full-charge bookkeeper may have this responsibility as well.
In this type of environment, the full-charge bookkeeper may
also be responsible for billing customers, paying vendors,
and doing the payroll.
Duties and Responsibilities
Therefore, depending on the size of the establishment, and
the way its accounting system is organized, the bookkeeper
could have some or all of the following duties and responsibilities:
• Prepare and issue purchase orders and work requests,
follow up on their status, and maintain files.
• Match invoices received from vendors with purchase
orders and receiving reports.
• Code vendor invoices with the appropriate general
ledger and cost center number.
• Prepare accounts payable vouchers to record invoices
and enter them into the accounts payable system.
• Generate checks or bank transfers to vendors when
invoices are due for payment.
• Reconcile statements from vendors to the accounts
payable subledger.
• Prepare billings to customers or clients.
• Verify invoice registers against shipping or sales
reports.
• Code customer invoices with the appropriate revenue
account number and enter into the accounts receivable system.
• Prepare and send or transmit customer statements.
• Prepare accounts receivable aging report.
• Do follow-up collection calls on outstanding receivables.
• Record cash receipts and disbursements.
• Review purchases and sales register and cash receipts
and disbursements register for accuracy and completeness,
and make any necessary corrections.
• Prepare bank deposits.
• Do bank reconciliations.
• Keep inventory records.
• Prepare receiving reports for materials and supplies
received.
• Prepare dispatch reports for products shipped.
• Enter receiving and dispatching documentation into
the inventory system.
• Do physical inventory counts and reconcile to the
perpetual inventory system.
• Maintain the required documentation in each employee’s
file for payroll purposes (application form, offer letter,
contract, W-4 statement, any authorizations for discounts,
enrollment in health insurance, pension, and other benefit
plans).
• Collect data on time worked from the time control
system used (time reports, time clock, time cards).
• Calculate the payroll and prepare the payroll register.
• Prepare payroll checks or bank deposits and pay statements.
• Prepare payroll tax returns.
• Respond to any questions employees have regarding
their paychecks.
• Label fixed assets, and take physical inventories
of fixed assets
• Calculate depreciation on fixed assets.
• Reconcile tax and book depreciation.
• Maintain petty cash fund.
• Prepare financial statements and reports.
• Provide information requested by internal and independent
auditors.
• Prepare information, reports, budgets, and forecasts
or projections requested by management.
How Are the Working Conditions?
Bookkeepers normally work in an office environment, with normal
business hours. There may be overtime during peak periods,
for example while closing the books for the month and at year-end,
when tax returns are due, or when there is an audit. If a
significant amount of the bookkeeper or clerk’s time
is spent accounting for inventory, the work may involve warehouse
conditions, which will depend on the nature of the business.
Since bookkeepers work for long periods of time in front of
a computer, the work can cause eye strain, headaches, backaches
from sitting for long periods of time, and the stress caused
on the wrist and hands from holding and moving a mouse for
extended periods. Ergonomics therefore plays an important
role in the bookkeeper’s workplace.
A bookkeeper works to a great extent under self-direction,
with a need for the initiative that goes along with the level
of responsibility of this position. In a larger organization,
an accounting clerk will generally report to a direct supervisor
in the accounting department, while in a smaller establishment,
a full-charge bookkeeper may report directly to the owner,
or to management. A clerk in an accounting department will
have contact with customers, vendors, contractors, service
providers, banks, insurance companies, tax authorities, or
others, depending on the area of specialization. A full-charge
bookkeeper will probably have contact with all these persons.
Bookkeeping can be a demanding and at times stressful job,
due to the need for concentration and accuracy, the level
of contacts and interaction with people both inside and outside
the organization, and the requirements of multi-tasking, especially
in the case of a full-charge bookkeeper with various different
duties and responsibilities.
What Are the Requirements?
Since the bookkeeper is keeping the records of the company’s
financial transactions, the first requirement is for the person
to be honest and trustworthy. Since the job involves confidential
information, the bookkeeper must also be discreet. A successful
bookkeeper will be careful, orderly, and detail-oriented.
Good work habits and discipline are necessary, and good planning
ability and time management skills are important attributes.
A bookkeeper must have the ability to work under pressure,
meeting various demands simultaneously in what is commonly
a multi-task position.
A bookkeeper must be comfortable using a computer, and should
be familiar with word processing and spreadsheet applications.
Specific knowledge of the accounting software the company
is using is very beneficial, and many job openings require
knowledge and experience using a particular accounting software,
such as QuickBooks.
Bookkeepers need good communications skills, in order to write
letters and e-mails, and to deal with customers, vendors,
and others by telephone.
The requirements in terms of education, knowledge, and experience
will depend on each individual position. But in general, knowledge
of generally accepted accounting principles, income tax aspects,
payroll taxes, and labor laws, are all beneficial.
On-the-job training is generally provided, by a supervisor
or senior-level person in the accounting department, in a
larger organization. This generally includes training in company
policies and procedures, and may include formal training in
the specific accounting software the company uses.
Education
An entry-level position as an accounting clerk may require
only a high school diploma, but an associate’s degree
in business or accounting is often required. College education
becomes increasingly important for bookkeeping positions in
which a more thorough knowledge of accounting is required.
Many times, a person with a bachelor’s degree in business
administration or accounting will accept an entry-level position
as a bookkeeper. In larger organizations, bookkeepers or accounting
clerks with degrees generally have more opportunities for
advancement to professional or management positions than those
who do not have a degree. But especially in a smaller establishment,
a bookkeeper with knowledge of the company and its operations,
and a proven record of experience, can make a career as a
bookkeeper in the company without necessarily having a degree.
The American Institute of Professional Bookkeepers (AIPB)
has a Certified Bookkeeper program - a national certification
program with courses offered at major colleges and universities.
The course is also offered online.
What Possibilities Does a Career in Bookkeeping Provide?
The growth of the economy will generate more financial activity
in general, but increasing automation and downsizing by companies
is resulting in the consolidation of clerical functions. Specialized
accounting clerks will generally be in less demand than full-charge
bookkeepers, who will be expected to carry out many accounting
functions in addition to their other administrative duties.
There is a trend toward outsourcing many of the accounting
functions of a company, and many accounting clerks and bookkeepers
may find opportunities in firms that provide financial services
such as payroll, billing, and bookkeeping services to several
different clients. Also, there may be more opportunities in
temporary personnel agencies, for companies that hire temporary
workers during peak periods.
Another trend, also related to outsourcing, is for accounting
clerks to work part-time, and in some cases from home. Medical
billing, for example, is an area that is increasingly being
done by persons working by computer from their homes.
With experience and additional education, bookkeepers can
move up to professional-level positions in accounting, purchasing,
auditing, or human resources, in the same company or in another.
And, while there may be a certain degree of specialization
in a certain industry or business, a bookkeeper with the right
knowledge and experience can make the transition.
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