A bookkeeper is responsible for recording the transactions or accounts of a business. These transactions typically include purchases, sales, payment of bills, collections or accounts receivable and payroll. In Australia there are several bookkeeping companies which offer bookkeeping services to business like http://bookkeeperco.com.au/bookkeeper/ as they have several bookkeepers Melbourne which they contract out to companies in need of such services.
The Most Basic Function of a Bookkeeper
For any bookkeeper Melbourne, the most basic function is to create financial transactions and financial reports from the information in the financial transactions. This information needs to be accurate and reliable as businesses use this information to assess their performance and also assist in making certain decisions. A good bookkeeper will have general knowledge of accounting as well as their bookkeeping knowledge. Knowledge of the general accounting principles is required you can find here and relevant business experience and qualifications.
The Basic Duties of a Bookkeeper
There are several duties of a bookkeeper which include:
- Balancing accounts – this is also commonly referred to as double entry bookkeeping. Double entry bookkeeping focuses on the fact that every transaction in a business has an opposite and equal effect in at least two separate accounts.
- Processing receipts, payments and sales invoices. It is the responsibility of the bookkeeper to make the payments to the vendors who have provided a service to the business.
- Completing Value Added Tax (VAT) returns. VAT is a form of consumption tax.
- Repairing cash flow statements.
- Handling the financial filing and paperwork of the business. The paperwork of the financial aspect of the business should be filed in a systematic way. There should be order and organisation in the business’ financial records.
- Preparing invoices for the purpose of Inland Revenue. Inland Revenue refers to public revenue which includes some direct tax and income tax.
- Checking the bank statements of the company.
- Prepare financial, accounting, tax and auditing reports on a quarterly or monthly basis.
- Issuing expense account reimbursements.
Working with the Accountant
In any business the role of the accountant is intertwined with the role of the bookkeeper. While working to ensure that the business’ books are up to date and accurate, the bookkeeper is also required to work alongside the accountant making regular checks to keep everything accurate. With this collaboration any errors, inaccuracies and confusions can immediately be recognised and corrected to ensure no long term damage to the business’ books and financials.
As it relates to the basic duties of a bookkeeper, in today’s world he/she should still be able to use accounting software.A bookkeeper is also responsible for preparing payroll, assembling information for the annual audit by external auditors, monitor and tag the fixed assets of the business and comply with state, local and federal government reporting requirements.Bookkeepers need to be honest, reliable and trustworthy persons as they are handling the most important aspect of a business – its finances and sometimes actual cash in hand. All the business’ reports, receipts and financial documents should be kept on file so that there is always an explanation for all the financial transactions of the business.