What are the skills of a bookkeeper?

Aside from a natural aptitude for numbers, there are several key skills that make a good bookkeeper.

These include:

  • The ability to be accurate while working quickly
  • An ability to remain focused
  • Excellent attention to detail
  • Comfortable working to strict deadlines
  • Computer skills, particularly databases and financial software
  • Honesty, discretion, and reliability

A bookkeeper who ticks all these boxes is likely to be a good prospect for successfully maintaining the financial records for your business.

What are the different types of bookkeeping?

As with many professions, bookkeeping comes in various forms—it depends on the needs of the business.

Here are some of the bookkeeping types that keep a modern business ticking over:

  • Sole traders: These are individuals working as bookkeepers on a freelance basis. They will usually have some training and certification to show, and they take on clients remotely to handle the bookkeeping tasks required.
  • In-house bookkeepers: These are employees of a business who handle the bookkeeping duties. They may be professional bookkeepers who maintain the books as their sole function, or they might be the person nominated by the business to handle the bookkeeper assistant duties on top of their other responsibilities.
  • Bookkeeping firms: Similar to accounting firms, these are teams of bookkeepers selling off-the-shelf packages that range from basic bookkeeping to more advanced things like strategic advice. Their services usually include all the bookkeeper duties small business owners will need. You can learn more about bookkeepers vs. accountants.

What is the main function of bookkeeping?

Bookkeeping involves the consistent and accurate recording of daily transactions.

This is crucial for collating the financial data necessary to run a business successfully.

What is bookkeeping, and what does it include?

Bookkeeping functions include:

  • Maintaining the general ledger
  • Recording business transactions in journals
  • Posting debits and credits
  • Creating invoices
  • Preparing certain financial statements
  • Completing payroll

Supporting documents are required for many business transactions.

These include things like receipts and invoices.

8 Bookkeeping Duties

Different businesses have different needs from a bookkeeper.

It depends on things like business size and industry, and GeekBooks offers a range of services for clients in various industries.

If things like consistent data entry or bank reconciliation are difficult for you to keep up with, outsourcing these tasks could free up some time and headspace to focus on business.

If you are uncertain about whether all bookkeeping tasks are being handled correctly, this section covers the most important things.

Whatever your thoughts about bookkeeping, here’s a bookkeeper duties list of the 8 most important processes you need to be aware of.

1. Data entry

The bread and butter of bookkeeping, this involves recording all transactions in the relevant journals.

They are then added to the general ledger (along with supporting documents where needed) for a comprehensive, accurate, and up-to-date record of your company’s financial activity.

2. Bank reconciliation

Another core function of bookkeeping is the process of systematically checking transactions in the records against activity in bank accounts.

The aim is to ensure that company records and bank account data are a match and to identify and resolve anomalies so that there are no problems when it comes to filing accounts at year-end.

3. Monthly reports

Monthly reports can include statements like:

  • Balance sheets
  • Profit and loss statements
  • Cash flow
  • Aged receivables and aged payables

These reports provide business owners with an up-to-date picture of the financial health of the business.

This can help with developing strategy and preparing for the annual reports at the end of the accounting period.

4. Accounts receivable (and credit control)

This is the process of invoicing customers and keeping track of whether or not they have been paid.

This includes chasing up overdue payments.

It’s important because, without it, the business could lose out on money it is owed and thus be less profitable.

5. Accounts payable

Accounts payable involves all the bills and debts your business must pay.

It’s essential to maintain a good relationship with suppliers, contractors, and lenders, so you must keep track of what you owe and ensure payments are made promptly.

You also want to manage these payments to ensure they aren’t all due at the same time because this could decimate your bank balance.

6. Payroll

This is about more than just paying staff. Employers are responsible for taking out deductibles like tax and also managing entitlements to leave and other human resource concerns.

Pay must be distributed on the correct date, and all workings must be filed with the tax authorities to ensure nothing is being done incorrectly.

7. Tax filing

Businesses have to file several mandatory tax returns at the end of the financial year.

It can be difficult to get everything right and could lead to you paying too much or too little in tax.

Bookkeepers are often tasked with handling this, but it can also be the work of an accountant.

In either case, the processes of bookkeeping throughout the year are fundamental to submitting accurate information.

8. End-of-year reporting

Similar to the monthly reporting, end-of-year reporting includes a range of financial reports to give to business owners and stakeholders.

However, end-of-year reports are compiled from all the data for the financial year, offering analysis of performance over a longer period.

These reports can form the basis of a strategy for the coming year, so it is important they are accurate and insightful.