Bookkeepers help us understand if our business is doing well or it could do much better. Aside from giving us an insight about our gains and losses, they tell as if we are squandering certain resources. Based on the information provided by bookkeepers, we make decisions on how to proceed further. It is pretty simple to hire or outsource a bookkeeper, but you should be careful. A wrong choice of a bookkeeper Melbourne can generate many problems, incur fines or even lead to tax evasion. Here are some of bookkeeper’s duties some of which are not very well-known;
This is one of the most important functions of a bookkeeper Melbourne. Recording each and every financial transaction, and keeping financial records updated is essential. The accounts have to be balanced every month. As the transactions usually occur on a daily basis, they have to be properly and painstakingly recorded in the books, in accordance with classification of business transactions.
Duties of a bookkeeper are not done with recording financial transactions. Creating detailed, complete and accurate financial statements by providing a summation of the financial operations is another demanding task we expect from our bookkeeper on every accounting period. These financial statements usually include balance sheet, income statement and cash flow. These documents should be kept up to date and issues monthly, quarterly or annually.
Bookkeepers have to follow current tax regulation and the changes related thereto, so the financial statements they create can comply with it. Otherwise, the company could face certain tax liabilities. Aside from tax regulations, there are rules to be followed regarding classification of financial transactions as this will affect the accuracy of the financial statements.see more from http://www.wikihow.com/Learn-Business-Accounting
In addition, bookkeepers Melbourne have to be familiar with bookkeeping software which makes their job much easier as it automates the process and maintains the accuracy. Sticking to the old-fashioned journals is no longer option nowadays. The best bookkeepers are proficient in using the latest bookkeeping software and is up to date with new software developments and features.
Accounts Receivable and Accounts Payable
Another vital role of a bookkeeper Melbourne is managing the accounts receivable and accounts payable of the company. Besides, a bookkeeper’s task includes receiving payments, tracking unpaid invoices and invoicing clients.
Accountants v. Bookkeepers?
Now a question comes up; what is actually the difference between a bookkeeper and accountant? In some cases, these two words can be used interchangeably. However, most bookkeepers start their job as data-entry clerks and as they get more experience and knowledge, they become in charge of daily financial recordings. On the other hand, a seasoned bookkeeper can be promoted into an accountant. An accountant is focused on financial statements, business analysis and advice. They often work as a team. We could say that accountants complete bookkeepers’ job to some extent, as they deal with classifying, interpreting, summarizing and reporting financial data. In other words, every accountant can be a bookkeeper if need be, but not every bookkeeper can be an accountant.visit their official website here!