Whichever industry you’re in, bookkeepers keep track of business’ finances.
The bookkeeper keeps track of all a business’s transactions. A bookkeeper’s projections help the business make future business decisions. Bookkeepers can also handle more long term financial analysis.
A bookkeeper is not an accountant. Bookkeeping is much more transaction-based. Bookkeepers allow business owners to know exactly where they stand financially. An accountant objectively analyzes how the business is doing and how best to move forward.
What Does A Bookkeeper Do?
Bookkeepers must handle a variety of tasks simultaneously. Here are some of the essential things a bookkeeper does:
- Input data to be further analyzed. Many bookkeepers today use software explicitly designed for bookkeeping. The software helps a bookkeeper understand a business’s finances. That data can then be analyzed for financial projections.
- Maintain the business payroll. The bookkeeper approves payroll funds for release. They also make sure there is enough money to pay employees.
- Track company debt. Bookkeepers make sure the company is not taking on too much debt. They will also pay off some of that debt with company funds when it is time to make a payment.
- They monitor inventory. The bookkeeper makes sure that the company is not overbuying inventory. They know when the company needs to sell the current stock on time.
- Prepare all financial statements. The bookkeeper prepares all the essential financial statements. These include income statements, balance sheets, cash flow statements, and a statement of changes in equity.
Considering a Career as a Bookkeeper?
Check out Stratford Career Institute’s bookkeeping career training course now to see if it is the right career path for you.
There are many areas of study that make a great bookkeeper.
In our course, you will learn about everything that a bookkeeper does, including:
- The purpose of bookkeeping
- Balance and income statements
- Analyzing transactions
- The accounting cycle
- Preparation of financial statements
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