Inside the Role of a Bookkeeper Tasks, Tools & Benefits

There are tons of Bookkeeping and Payroll Services settings you can play with to give the most useful information to your clients. Every single month, around the 6th of the month you will want to run this report for your client. Another thing you will be responsible for is reconciling all the bank accounts at the end of the month. You’ll take a look at the bank statement and see how much the bank thinks there should be in the account, and compare it to what is in QuickBooks. At your request, QuickBooks will conduct a full evaluation of your bookkeeper’s work.

• The level of pressure or stress experienced by a bookkeeper can vary depending on factors such as the size of the business, the complexity of the financial records, and the individual’s workload.
• Ryan Roch is the CEO of Intrepidium Consulting, offering customized Bookkeeping, Accounting, Fractional CFO, and Tax Preparation Services to small and medium-sized businesses.
• Keeping these daily records up-to-date helps create an accurate picture of the company’s finances.
• The significant difference is that accountants are tasked with interpreting financial data.
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What is Bookkeeping?

It calculates accounting wages, distributes paychecks, manages benefits, and ensures that taxes are done correctly. Without payroll, businesses could face unhappy employees and legal problems from unpaid or incorrect pay. Employees rely on payroll for accurate pay, timely benefits, and proper tax filings. Bookkeeping is typically managed by bookkeepers or accountants, while payroll is often handled by HR, payroll specialists, or outsourced payroll providers. Many employers offer on-the-job training to help new or aspiring bookkeepers learn the software and procedures used in their company.

What’s the difference between a bookkeeper and an accountant?

Once in there, you will see quite a few pre-filled categories already, but you may need to customize them based on your client’s business needs. Once you have a good idea of the work involved, focus on finding a bookkeeper whose background aligns with your business needs. Look for professionals who have experience working with businesses similar to yours, considering factors like size or industry structure.

• When hiring a bookkeeper who can do payroll, it is important to look for someone who is experienced in payroll processing.
• If you are working toward your bachelor’s degree in accounting, some employers may be willing to offer you an accounting job once you earn your degree.
• At Sundance College, our Accounting, Tax & Payroll diploma program prepares you for both paths, equipping you with the hands-on training and industry-relevant knowledge to start a career in both roles.
• It made me think, “Hmm, maybe there are other companies out there that need my help.” This eventually led to the start of my business.
• A bookkeeper’s duties are part of the accounting cycle, an eight-stage process every business needs to follow to maintain financial compliance.

Build essential bookkeeping skills.

• Some bookkeepers work within larger companies or as part of a large team, while others own their own business and do the account management of other small businesses.
• You’ll need sharp attention to detail to catch every number and keep the ledgers accurate.
• With the direct translation of data between systems, you don’t need to worry about something being incorrect.
• If you’re growing, the outsourced bookkeeping service should be able to help you scale by adding full service accounting when you are ready for it.
• When your records are accurate and your deadlines are met, that’s peace of mind only a bookkeeper can offer.

Their primary responsibilities include maintaining general accounting ledgers, recording journal entries, and generating financial statements. Bookkeepers are often responsible for preparing key financial statements, such as the income statement, balance sheet, cash flow statement, and statement of owner’s equity. Bookkeepers are essential for the financial health of your business. They do things like making sure your financial data is accurate, organized, and up-to-date. In essence, they’re the guardians of your company’s financial records.

• They also track accounts payable (outstanding bills), accounts receivable (invoices or payments from customers) and profit and loss, according to the U.S.
• Others may pursue professional certifications to enhance their skills and career prospects.
• The highest 10% earned more than $61,980, and those employed in the finance and insurance sector earned slightly more than the median, BLS reports.
• If a bookkeeper owns their own business, they’ll doe everything mentioned above as well as more!
• Others offer full-service bookkeeping, including tax prep, forecasting, and cash flow reports.
• Bookkeepers help businesses manage their finances by monitoring different accounts, transactions, and reports.

Conversely, some businesses expect their payroll provider to offer the same tax planning and strategic advice as a CPA. While payroll providers excel at compliance and execution, they typically don’t provide business tax strategy, represent clients before the IRS, or offer financial planning services. For very small businesses with simple structures, a skilled bookkeeper might handle most of your financial needs. Bookkeeping organises financial data used for reports like profit & loss and cash flow statements while payroll generates pay stubs, tax filings, and compliance documents.

Reasons Why Bookkeeping is Important for Your Business

Payroll requires specialized software, real-time processing, and constant attention to changing regulations that most CPA practices aren’t equipped to provide efficiently. A Certified Public Accountant (CPA) operates at the strategic level of your business finances. While bookkeepers organize information and payroll providers handle employment compliance, CPAs analyze, plan, and advise. They’re the only one of the three who can legally represent you before the IRS and provide certified financial statements. Bookkeeping maintains accurate financial records needed for tax filing, while payroll ensures compliance with employment and tax laws, including wage laws, benefits, and payroll tax obligations.