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What Are the Responsibilities Required of a Bookkeeper?

Bookkeeping is the process of keeping track of the financial transactions of a business. This includes recording, storing, and retrieving financial data. Bookkeeping is important for businesses to maintain accurate financial records and to prepare financial statements.


Bookkeeping is typically done by a bookkeeper, who records the financial transactions of a business in a bookkeeping system. The bookkeeper keeps track of the business's income and expenses and posts this information to the appropriate accounts in the bookkeeping system.


The role of a bookkeeper is multi-faceted and they do multiple things and activities. In this article, we will discuss the different activities required of a bookkeeper.


What Are the Responsibilities of a Bookkeeper?


Several important activities need to be carried out in bookkeeping to keep track of all the financial transactions occurring within a business. These activities include:


1. Keeping and Organising Records


The main responsibility of a bookkeeper is to keep track of a business's financial records. These include the sales records, the purchases records, the receipts and payments records, and the bank statements. All these records need to be organised efficiently to access them when required easily.


2. Reconciling Accounts


Another important responsibility of a bookkeeper is to reconcile all the accounts regularly. This includes reconciling the bank accounts, the credit card accounts, and the accounts receivable and payable. This is important to ensure that all the transactions are accounted for and that there are no discrepancies in the records.


3. Preparing Financial Statements


A bookkeeper must also regularly prepare a business's financial statements. These statements include the balance sheet, the profit and loss statement, and the cash flow statement. These statements are important to track a business's financial performance and make necessary decisions.


4. Budgeting and Paying Bills


A bookkeeper is responsible for preparing the budget and paying a business's bills. This includes preparing the budget, paying the employees, and paying the suppliers. This is important to ensure that a business runs smoothly and that all the necessary expenses are covered.


5. Managing Accounts Receivable and Accounts Payable


A bookkeeper must also manage a business's accounts receivable and accounts payable. This includes keeping track of the due payments, issuing invoices, and collecting payments. This is important to ensure that a business can keep track of its finances and make sure that all the necessary payments are made on time.


6. Filing Taxes


Filing the taxes of a business is also one of the many things a bookkeeper must do. This includes preparing tax returns, paying taxes, and filing the necessary paperwork. This is important to ensure that a business pays its taxes on time and in full.


7. Managing Inventory


Few people are aware, but inventory management is also a bookkeeper's responsibility. This includes keeping track of the inventory of a business, as well as keeping track of the sales of a business. The goal of inventory management is not only to ensure that there is sufficient inventory for delivery and sales but that it is bought and sold at the right price without excess costs.


Conclusion


Bookkeeping is the process of recording, classifying, and summarising financial transactions to provide useful information in business decisions. It is a critical function in any organisation, providing insights into the company's financial health. Accurate and up-to-date bookkeeping is essential in making sound business decisions.


If you are seeking an accountant for an online business in Australia, you can hire us at The ECommerce Accountant. We offer various services that will help you focus on the operations aspect of your business. Get in touch with us to learn more about what we can do for you at The ECommerce Accountant.

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