What does a bookkeeper do?

Bookkeepers are responsible for recording financial transactions related to the business. While most bookkeepers work with businesses, some individuals may also choose to hire a bookkeeper to track personal finances. While the basics of accounting haven’t changed in over 500 years, the practice of bookkeeping has. Bookkeeping was once done manually using actual books called journals and ledgers. Because bookkeeping is based on double-entry accounting, each transaction affects two accounts — one gets debited and the other is credited. A Bookkeeper is responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, invoices, and payments.

Bookkeeping is a great place to start if you’re hoping for a way to break into the finance industry. There are many bookkeeping job opportunities and generally fewer education requirements than in other finance and accounting positions. Although the terms are typically conflated or used interchangeably, bookkeepers and accountants have distinct roles and obligations. Bookkeepers are, essentially, on the front line; they maintain an account of how finances flow into and out of an entity from day to day. Your bookkeeper might also prepare other auxiliary reports for your business, like accounts payable and accounts receivable aging reports. You can use these to make business decisions, but they should not be presented as audited, certified or official financial statements.

For small businesses

Additionally, maintaining a bookkeeping certification from NACPB or AIPB requires continuing professional development. A typical bookkeeping certification course takes several weeks to complete. For example, NACPB’s initial certification course takes an estimated 13 weeks, but you can complete the material at your own pace. NACPB also offers a Certified Public Bookkeeper license, which takes several months. Accountants, on the other hand, take the data generated by bookkeepers and turn it into actionable insights.

• The core function of a bookkeeper is to ensure that all bills are paid on time, transactions are recorded correctly, payroll runs on time and taxes are filed correctly.
• Learn how QuickBooks Live Assisted Bookkeeping can help you streamline your bookkeeping and free up time spent on finances.
• She writes about education, corporate culture, renewable energy and the Internet of Things.
• When making this decision, there are two things you should keep in mind.
• If you’re a seasoned bookkeeper, however, a bookkeeping certification may not be worth it.

With years of experience under your belt, it’s likely that you already have the skills and credibility required to do your job well. Employers are less likely to ask for certified evidence of your skills if you’ve been working as a bookkeeper for years. Take routine bookkeeping off your never-ending to-do list with the help of a certified professional.

Why QuickBooks

If you’re a detail-oriented individual who enjoys working with numbers, then you might consider a career as a bookkeeper. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us. This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site.

What Does a Bookkeeper Do? A Simple Explanation

A bookkeeper is someone who prepares your accounts, documenting daily financial transactions. Bookkeepers have been around as far back as 2600 BC—when records were tracked with a stylus on slabs of clay—making bookkeeping not the oldest profession, but pretty darn close. You may be able to get on-the-job training through a bookkeeping job that only requires a high school diploma, such as an internship or training placement. You may also pursue certification programs or use online courses to become a self-taught bookkeeper.

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They prepare your accounts, document daily financial transactions and ensure compliance with applicable standards. Bookkeeping is the process of tracking and recording lessons from leaders on how to combat and prevent job burnout a business’s financial transactions. These business activities are recorded based on the company’s accounting principles and supporting documentation.

While bookkeepers used to keep track of this information in physical books, much of the process is now done on digital software. Bookkeepers help business owners manage their finances by documenting transactions, paying and issuing invoices, generating reports, and recording accurate financial data. Bookkeepers can also deliver reports on your business’s financial standing. But what do all of these figures mean, and where do you go from there? Our ideal candidate holds a Finance degree (preferably followed by accounting CPE courses) and is familiar with accounting software packages, like FreshBooks, Kashoo and KashFlow. For instance, they must understand how to produce balance sheets and income statements, as well as record organizational debits and credits.

Both AIPB and NACPB require previous bookkeeping experience to qualify for their courses. This Bookkeeper job description template is optimized for posting on online job boards or careers pages. Add your specific bookkeeping responsibilities to attract the most qualified candidates for your company. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein.