Bookkeeper: A Day in the Life
A bookkeeper’s role is to manage and record a companies’ financial accounts, which is a daily task. Bookkeepers use various programs to help them do this, but their main task is to ensure financial data is recorded correctly in the right format. All money that comes in and out of the company needs to be tracked and should comply with the current regulations.
Another task for a xero bookkeeper sydney is to make sure the payroll is prepared every month or week depending on when the company pays its staff. ‘Tax reports’ may also be in the bookkeeper’s remit and this entails information on profit and loss cash flow. Typically, a bookkeeper will use online tax preparation software such as QuickBooks.
Many people think that a bookkeeper is the same as an accountant, but they are incorrect, as an accountant must have certain qualifications and certifications from specific courses and training. Bookkeepers can also take exams and there are a variety of different qualifications available for those who want to take their learning further. If you want a qualification, they are very flexible and allow you to complete the course from home or at a certified center.
What To Expect From a Bookkeeper
Familiar with Many Types of Accounts
You might not know about five different types of accounts, but your bookkeeper should possess the basic knowledge of accounting including the difference in five basic types of accounts: the assets, equity, income, liabilities, and expenses.
Eye for Detail
Your business needs someone who can take care of even minute details because any loophole in the financial detail can make your business suffer. Also, the person should be an independent worker so that you don’t need to spoon-feed him on every step to save yourself from any loss.
If your organization makes a big purchase, a bookkeeper must know how to set up an asset and liability account. He should also know how to allocate the payments to interest expense and liability of principal reduction.
It is the duty of the bookkeeper to make monthly financial statements (balance sheet, profit & loss statement, and cash flow statement) available by the 10th day of the following month.
Knowledge of Various Industries
Learning is a never ending process; hence, your bookkeeper can learn about your industry after being hired. But, it would be beneficial if the person you hire already have an understanding of your industry because every industry has different terms and insider aspects which can be learned only while being on the job.