Bookkeeper definition in English: Bookkeeper is someone who records the accounts or business transactions of a company in an accounting system.
Smaller organizations or companies usually employ bookkeepers. They typically process and record financial transactions, including sales, purchases, collections of accounts receivable, payroll, paying bills, and other similar tasks. Once the bookkeeper records transactions, the accountant or a business owner will review the bookkeeper’s work and make any needed adjustments before finalizing the company’s financial statements.
Bookkeeping requires careful analysis and legal knowledge. A bookkeeper’s meticulous records may help a business survive an audit, ensure financial records are orderly, and all deductions and transactions are legal. In addition, they prepare critical financial statements, including profit & loss statements.
Who is a Bookkeeper?
Bookkeeper definition is very clear. A bookkeeper is a type of accounting professional. Bookkeeper meaning is someone primarily responsible for recording and maintaining detailed financial records for a company or organization. Bookkeepers record purchases, expenses, invoices, payments, and sales revenue in their appropriate ledgers for a company.
Main Responsibility of Bookkeepers
They are responsible for recording financial transactions, reconciling bank statements, preparing financial reports, and ensuring compliance with accounting regulations and standards. Bookkeepers typically work with financial software, spreadsheets, and other tools to record and analyze financial data, and they may also be responsible for budgeting and forecasting, as well as monitoring cash flow and managing accounts payable and receivable. In short, bookkeepers make sure that the financial records of a company are accurate, up-to-date, and in compliance with legal and regulatory requirements. Generally, a bookkeeper’s responsibility is to oversee the first six steps in the accounting cycle. An accountant then carries out the final steps.
What do you call the job of a bookkeeper?
A bookkeeper does just as the name implies; they keep the books or financial records for a business or organization.
What are the Roles of a Bookkeeper?
Bookkeepers handle the daily financial activities of their clients. They oversee, record, and facilitate incoming and outgoing payments associated with each account. They are primarily concerned with the financial health and stability of their clients.
The scope of their duties and responsibilities include:
- Maintaining accurate records of all financial transactions
- Updating and maintaining the general ledger
- Reconciling entries in the company’s accounting system
- Recording all credits and debits
- Maintaining the trial balance by reconciling general ledgers
- Account reconciliation to ensure transactions are accurate
- Complying with local laws and all reporting requirements
- Monitor any variations from projected budgets
Types of Bookkeepers
There are several types of bookkeepers. The type of bookkeeper a company or individual needs will depend on their specific needs and the scope of their financial operations.
Corporate Bookkeeper Definition
A corporate bookkeeper is a professional who specializes in maintaining the financial records of a corporation. This includes tasks such as recording financial transactions, reconciling bank statements, preparing financial reports, and ensuring compliance with accounting regulations and standards. Corporate bookkeepers may also be responsible for budgeting and forecasting, as well as monitoring cash flow and managing accounts payable and receivable. Corporate bookkeepers usually work in-house for the corporation and report to the finance or accounting department.
Freelance Bookkeeper Definition
A freelance bookkeeper is a professional who provides outsourced bookkeeping services on a contract or project basis. They work independently and may provide services to multiple clients simultaneously. They are self-employed and typically work from their own or home offices. They are responsible for all aspects of a company’s financial records, including accounts payable and receivable, payroll, and general ledger maintenance. They may also be responsible for budgeting, forecasting, monitoring cash flow, and managing accounts payable and receivable. They may work with various software, including accounting software, spreadsheets, and other tools, to record and analyze financial data. Freelance bookkeepers are usually hired by small businesses or companies with a low volume of transactions. They can be a cost-effective solution for businesses that don’t need full-time bookkeeping staff.
Remote Bookkeeper Definition
A remote bookkeeper is a professional who provides bookkeeping services to a business or organization remotely, usually through digital tools. A remote bookkeeper works in a different physical location than the company or organization and may be located in a different city or even a different country. Remote bookkeepers typically use cloud-based software and other digital tools to access financial records and make entries. They may also use video conferencing and other communication tools to stay in touch with clients. Remote bookkeepers may work as independent contractors or employees of a bookkeeping firm that provides remote services to multiple clients. Remote bookkeeping is one of the best bookkeeping solutions allows businesses to access skilled bookkeepers at a lower cost as they don’t have to pay for office space, benefits, and other employee expenses.
Certified Bookkeeper Definition
A Certified Bookkeeper is a professional bookkeeper who has passed a certification exam and met other requirements set by a professional certifying body. These certifying bodies, such as the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB) have a certain education, experience, and ethical standards that the candidate needs to meet before taking the exam. Once certified, the bookkeeper must fulfill continuing education requirements to maintain their certification.
Holding a certification in bookkeeping demonstrates a level of expertise, experience, and professionalism in the field, as well as a commitment to staying current with industry developments and best practices.
What is a Full Charge Bookkeeper
A full charge bookkeeper definition is a bookkeeper who is responsible for all aspects of a company’s financial records, including accounts payable and receivable, payroll, and general ledger maintenance.
What Qualities Distinguish a Good Bookkeeper?
Aside from bookkeeping skills, a few qualities can make the difference between a good bookkeeper and a poor one. A company shouldn’t have to worry about how efficiently and accurately bookkeepers are taking care of their financial information if when they hire outsourced bookkeeping services from a reputable bookkeeping company. But there are also a few other qualities that define a good bookkeeper.
- Trustworthy. A bookkeeper will handle a lot of important information for a business or organization. The data needs to be kept confidential, so integrity is expected.
- Organized. The organization is essential for bookkeepers and other accounting professionals. Being organized helps ensure smooth and efficient operations.
- Multiple Projects. Bookkeepers need to be able to prioritize tasks and complete a variety of tasks efficiently. They may work with more than one client, or they may work on multiple projects requiring their undivided attention.
- Detail Oriented. Bookkeeping professionals will be dealing with their client’s finances. Therefore, they should be able to give great attention to the smallest details. This helps them find ways to improve their profits.
Where Does a Bookkeeper Keep Track of Transactions?
Bookkeeping begins with handling source documents such as bills, invoices, cash register receipts, and purchase and sales orders. Next, the information on these types of documents is recorded in the general ledger using double-entry bookkeeping. This is called journaling entries. Finally, transactions are recorded using journals and ledgers, whether they are physical or online.
How much can Bookkeepers Earn?
Bookkeepers earn between $9 and $30 per hour on average. That is between $35,000 and $40,000 a year. The wide salary range includes several var, including the company’s size, primary responsibilities, experience, and how well they can get things done without supervision or oversight. Bookkeepers who gain experience with accounting software may end up on the higher end of the scale.
How Do I Become a Bookkeeper?
There are a couple of ways to become a bookkeeper. You may pursue a salaried position with a company or organization. You can also start your own freelance bookkeeping service. Either way, you’ll need to follow some steps to start on the career path.
- Get Your High School Degree. You do not have to obtain a college degree to be a bookkeeper, but you need a high school diploma or a GED. Aspiring bookkeepers who pursue either an Associate’s or Bachelor’s Degree in Accounting or Business Administration can work for clients with higher requirements. That can mean more salary than jobs that do not set higher educational requirements.
- Training. There are many places to obtain bookkeeping training. Many freelance bookkeepers begin by learning how to use accounting software like Quickbooks. There are also plenty of online courses, seminars, and books that teach the basics of finance. Some larger employees will train entry-level bookkeepers. Some bookkeepers pursue an internship with an accounting firm or a local company to gain practical, hands-on experience.
- Certification. Whether you choose to work as a freelance bookkeeper or work with a company, you may benefit from obtaining certification. The National Association of Certified Public Bookkeepers and the American Institute of Professional Bookkeepers offer certifications. Both certifications require you to work full-time as a bookkeeper or to work a certain number of part-time hours. Then, you have to pass the exam to earn your certification.
Is a Degree Required to Become a Bookkeeper?
You do not have to obtain a college degree to become a bookkeeper. Most companies only require candidates to have the equivalent of high school education. However, some employers do have higher standards and require candidates to have at least a bachelor’s degree in accounting or Business Administration. So, while you may be able to gain valuable experience as a bookkeeper with just a high school diploma or GED, if you want to secure higher-paying positions, pursuing a BA in Accounting or Business Administration is a good idea.
Is it the Responsibility of Bookkeepers to Prepare Financial Statements?
No. A bookkeeper records transactions in the books of a business. This is a broader general practice of accounting. In most cases, bookkeepers provide the accountant with a trial balance, which consolidates the general ledger accounts into a single financial document. Bookkeepers lay the groundwork for the accountant to be able to analyze and prepare the financial statements for the business.
Is Bookkeeping Difficult to Learn?
No. Bookkeeping is not difficult to learn as long as you have a basic knowledge of math, accounting, and bookkeeping practices. It’s useful if you have some knowledge of how to do business taxes too. However, bookkeeping is not something to attempt without any training or experience.