There are multiple functions to be done in the daily work of bookkeeping including maintenance of the supplier, customer, and general ledger. S Each business will have a customised approach and reporting preferences. The general ledger is the key to business operations and reveals the fundamentals of income and expense ratios.
Bookkeeping is a daily job as a rule to keep up to date on the various transactions of a business such as cash receipts, purchases and sales. It may be required to process payments from vendors and bill customers for their purchases, including sales tax. As a result of bookkeeping efforts, the tax collected is reported quarterly to the government and the required deposits are made.
Bookkeeping as a professional activity involves handling bank accounts: checking statements and reconciling them. They make deposits as needed. In some companies, there is a petty cash system to manage and balance. These tasks are added on top of the generation of financial statements, usually done at least monthly. They include the trial balance and the P& L.
At times, the same person who handles bookkeeping is the office manager in charge of maintaining and ordering supplies. They are on top of the fixed assets of the company and the basic overhead. They know at a glance debt to expense ratios and how excess debt should be addressed.
On top of these tasks, the person in this role must maintain the budget of the company and chart of accounts. They need to process the payroll. They make sure the accounting filing system works effectively and if there are any problems, they need t correct them.
An accountant in principle is a senior position that stands over the bookkeeping function. Although the work is delegated, it is monitored by this person at all times. Furthermore, the accountant is an analyst, reviewing financial statements and records to get a larger picture of the company’s health. They have the ultimate responsibility for payroll, taxes, debt payment, and more.
Bookkeeping is a fine career choice and there are over a million in the US alone. The income runs about $35,000 on the average which computes to $16/hour. Assets in the personality of the performer of this job include organisation, detail orientation, mathematical prowess, and computer skills. Many come from business administration or accounting programs in colleges and universities. However, an entry level position may be offered to a high school grad. As business experience develops, so does advancement.