what is a bookkeeper

Having the ability to prepare an accurate financial picture of an enterprise and keep records organized is essential for being a bookkeeper. As a bookkeeper, you will need to learn how to create balance sheets, invoices, cash flow statements, income statements, accounts receivable reports, and more. Although software and calculators do most of the math, basic skills such as addition, subtraction, multiplication, and division are essential to helping you catch errors quickly.

The service you decide to use depends on the needs of your business and may include extra features such as payroll or tax documents. Start by deciding on the system you want to use, whether it’s an online program, paid software or a spreadsheet. Next, set aside a dedicated time either weekly or biweekly to review your bookkeeping, reconcile transactions and complete necessary data entry. Finally, you’ll want to decide how all receipts and documents will be stored. You can either keep hard copies or opt for electronic files by scanning paperwork.

Inventory Bookkeeper

Typically, double-entry bookkeeping uses accrual accounting for liabilities, equities, assets, expenses and revenue. In this article, you’ll learn more about what bookkeepers do, why they’re important to a business, and how much they earn. You’ll also explore how to become one and find suggested cost-effective courses that can help you gain job-relevant skills today.

A bookkeeper can expect to earn a salary in the range of $30,000-$60,000 a year in the US. However, compensation will widely vary depending on the employer, location, and candidate experience. Bigger companies tend to offer better compensation for bookkeepers; this is largely due to the increased volume of transactions and data. A multinational corporation performs hundreds of transactions a second, while a small business might perform less than a hundred in a day.

Do you need a bookkeeper if you use account software?

Bookkeeping accuracy and reliability are essential for businesses to succeed for staff, executives, customers, and partners. Bookkeepers are important professionals in today’s economic and financial fields. Every company, even a small one, requires bookkeeping to maintain a healthy financial position. In retail or other non-office environments, bookkeepers may work in a back-office or stockroom area, away from customers and other employees. They may be responsible for managing inventory, tracking sales, and handling cash and credit card transactions. Bookkeepers work in a variety of settings, depending on the nature and size of the organization they serve.

Kelly Main is staff writer at Forbes Advisor, specializing in testing and reviewing marketing software with a focus on CRM solutions, payment processing solutions, and web design software. Before joining the team, she was a content producer what is a bookkeeper at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and holds an MSc in international marketing from Edinburgh Napier University.

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