![]() They can call upon the local certified public accountant for answers to the more difficult questions that may arise. Instead, bookkeepers can become quite proficient with hands-on training and a modest amount of accounting knowledge. Bookkeeping Requirementsīookkeeping requires a basic knowledge of accounting, but not an accounting degree. These advanced accounting tasks are needed to refine the financial statements to accurately reflect the results, financial position, and cash flows of an organization - tasks for which a bookkeeper is not trained. Accounting Activities Not Associated With Bookkeepingīookkeeping can also be defined by what it is not, which includes any of the more advanced one-time journal entries to account for unusual events, as well as the preparation of more detailed accounting schedules. This information must be sufficiently organized that the auditors can easily access information when they conduct the year-end audit. The bookkeeper is responsible for filing all supporting documents for customer billings, supplier invoices, and payroll. Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organizations. The bookkeeper may prepare preliminary financial statements, but may rely upon an accountant to produce the final statements. The bookkeeper also prepares paychecks for employees, and remits payroll taxes to the government. The bookkeeper collects timesheet information from employees and pay rate information from the human resources department, and uses these inputs to prepare a periodic payroll. The bookkeeper records all customer payments in the accounting system, and then delivers the checks and cash to the bank, so that it can be deposited in the company’s checking account. ![]() As part of the billing process, the bookkeeper also remits sales taxes to the government. The bookkeeper also makes collection calls to customers whose invoices are overdue for payment. The bookkeeper receives shipment information from the shipping department and uses it to prepare billings to customers. The bookkeeper records supplier invoices in the accounting system, obtains approvals for them, and pays suppliers in accordance with the payment terms stated on each invoice. Types of Bookkeeping ActivitiesĪ bookkeeper is usually involved in the general accounting areas noted below. In essence, the term implies that an individual is tasked with the most common ongoing accounting transactions more complex transactions are reserved for those with more advanced accounting training. Bookkeeping involves the recordation of basic business transactions in a recordkeeping system.
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