Below are the ten little known ways to make the most out of bookkeeper duties.
1. Understand the Different Types of Bookkeeping Tasks
Bookkeeping tasks can be broadly classified into four categories:
Recording financial transactions:
This includes recording the date of the transaction, the amount of the transaction, and the type of transaction (e.g. income, expense, asset, liability).
Posting journal entries:
Journal entries are records of financial transactions that have been recorded in a book of original entries (e.g. cash book, general ledger). They are used to update account balances and to prepare financial statements.
Preparing financial statements:
Financial statements show a company’s financial position, performance, and cash flow. They are used by managers to make decisions about where to allocate resources.
Analysing financial data:
This involves using bookkeeping information to identify trends and relationships. It can help managers make informed decisions about pricing, investment, and other business decisions.
2. Develop a Standardized Approach to Performing Bookkeeping Tasks
To ensure accuracy and efficiency in your bookkeeping, it is important to develop a standardized approach to performing tasks. This includes creating clear and consistent records, using approved accounting methods, and following an established workflow.
3. Keep Accurate and Detailed Financial Records
One of the most important aspects of bookkeeping is maintaining accurate and detailed financial records. This information can be used to track the financial performance of your business, prepare budgets and forecasts, and make informed decisions about future growth.
4. Understand Your Company’s Financial Statements
Bookkeepers must have a good understanding of financial statements. Financial statements show a company’s financial position, performance, and cash flow. By understanding these reports, bookkeepers can provide key insights to managers about where money is being spent and where it is coming from.
5. Prepare Budgets and forecasting Reports
Budgeting is the process of estimating future income and expenses. Forecasting is the projection of future trends in financial data. Both of these tools are important for businesses as they help managers make informed decisions about where to allocate resources. As a bookkeeper, it is important to be familiar with both budgeting and forecasting techniques and be able to produce reports that reflect the financial health of your company.
6. Perform Accounts Payable and Accounts Receivable Functions
Accounts payable (AP) are bills that a company owes for goods or services that have been received. Accounts receivable (AR) are amounts of money that a company is owned by its customers. As a bookkeeper, it is important to be familiar with the processes involved in AP and AR and be able to generate reports that reflect the financial health of your company’s payables and receivables.
7. Reconcile Bank Statements and Credit Card Accounts
Reconciling bank statements and credit card accounts is an important task in bookkeeping. By reconciling these accounts, you can ensure that the balances shown are accurate and identify any discrepancies. This information can be used to help you make informed decisions about your company’s financial health.
8. Manage Inventory Levels and Process Vendor Payments
Inventory levels represent the amount of stock that a company has on hand at any given time. Bookkeepers need to be familiar with the process of managing inventory and preparing vendor payments. By doing so, they can ensure that the financial records are accurate and up-to-date.
9. Stay up to Date with Changes in Tax Regulations
Bookkeepers must stay up to date with changes in tax regulations. By doing so, they can ensure that the financial records are accurate and compliant with government standards.
10. Use Appropriate Software Solutions
Bookkeeping can be a complex process, especially when you are dealing with large amounts of data. To make the task easier, it is important to use appropriate software solutions. This could include accounting software, invoicing software, or payroll software. By using these tools, you can streamline your bookkeeping processes and improve accuracy and efficiency.
When it comes to bookkeeping, accuracy and detail are key. By following these tips, you can ensure that your financial records are accurate and up-to-date. This information can be used to inform decision-making and help your business grow.