What is Bookkeeping?
Duties and Responsibilities of a Bookkeeper
The duties of a bookkeeper in any organization may remain the same, although in some financial institutions, there may be a few variations depending on the level of specialization and sophistication the books of the company are. As a bookkeeper, you will do the following duties:- Keeping records of all the financial transactions of a company
- Verifying, allocating and posting transaction details of the company to the relevant subsidiary accounts in journals
- Verifying financial details on expenditures, allocations and other issues to do with finances using receipts, invoices, sales slips, check stubs and computer printouts
- Summarizing the details of specific ledgers and transferring the data to the general ledgers of the company
- Account balancing and reconciliation
- Compiling financial reports to show statistics used in decision making and projections
- Calculation of employee wages using time cards or plant records
- May be required to prepare checks for employee wage payment
- Preparing tax reports, Social Security reports and other relevant financial reports for filing
- Computing, typing and mailing customers’ their monthly statements
- Assisting in budget preparation
Where Can Bookkeepers Be Employed?
All types of organizations utilize the services of bookkeepers. Although there is a movement towards the use of computer applications that make the work of bookkeeping easy, companies and other organizations of all types still employ bookkeepers.The following are some of the places a qualified bookkeeper can find employment:
- Legal firms
- Financial institutions
- Government departments and offices
- Medical firms
- Insurance companies
- Educational institutions such as colleges, universities and all types of schools
- Outsourcing businesses
- Real estate companies and as many other companies or businesses available
Educational Qualifications
Most companies will require you to have some minimum academic qualifications in order to be employed. Other certifications might also be required, depending on the accounting rules of a state, region or company.The following are some of the most basic requirements to become a bookkeeper:
- An associate’s degree in accounts and accounting as a basic
- Two years of full time study for completion of the degree course
- A certification from the American Institute of Professional Bookkeepers (AIPB) – the Bookkeeper Certification
- A certificate from the National Association of Certified Public Bookkeepers (NACPB) might also be a requirement in some organizations
- NVQS/SVQS certification from the Association of Accounting Technicians (AAT) may also be relevant
- Specialist courses provided by The International Association of Bookkeepers (IAB)
- The SQA National Units for accountants and several other courses are relevant.
Other Aptitudes
Bookkeepers need to have some other skills in order to make them competent for employment. The most basic skill is having a natural flair with numbers, although other relevant skills may include the following:- Coordinating skills relevant for working with various departments when creating their books of accounts
- Administrative skills and abilities so that you can monitor the financial data of various departments with authority
- Computer skills especially to do with the modern bookkeeping applications
- Eye for detail to help you in diagnosing accounting errors
- Analytical skills relevant for preparing charts and also tax reports
- Time management skills and ability to meet deadlines
- Honesty and trustworthiness
- Ability to concentrate for a long time on a task
- Ability to work quickly without jeopardizing accuracy
How Much Do Bookkeepers Earn?
The salary of a bookkeeper varies according to geography, employer and working conditions. According to the Bureau of Labor Statistics, the statistics showing the earnings of bookkeepers are as follows:- The average salary is around $33,800 per year or $16.25 per hour
- About 80% of American bookkeepers earn between $21,000 and $49,000 annually
- The middle 50% earners make between $26,000 and $40,000 every year.