The scope of a bookkeeper’s duties and responsibilities depend on the size of the business organization or establishment, and the way its accounting operation is set up. In a larger organization the bookkeeping function is generally split up into different areas of accounting, such as accounts payable, accounts receivable, payroll, general ledger, and possibly fixed assets or property. In this type of environment, a bookkeeper will generally have a clerical or accounting position, and will specialize in a certain aspect of bookkeeping. In a smaller establishment, there may be just one full-charge bookkeeper, with much broader duties and responsibilities, who basically takes care of all the operation’s financial activities. These two different scenarios – accounting clerk or full-charge bookkeeper – create different work environments and require different sets of abilities, training, and experience.
What Does a Bookkeeper Do?
A bookkeeper working as a clerk in the accounting department of a large organization or establishment generally works with business documents and information systems – entering data, reviewing reports, assembling and organizing documentation, and maintaining electronic and physical files. The bookkeeper, or accounting clerk, is generally the person responsible for the original entry of data on business transactions into the accounting system. These books of entry include the purchases and sales journals, the cash receipts and disbursements journals, the payroll register, and the general journal where entries are made to capitalize construction project costs, record depreciation, amortize prepaid charges such as insurance, and accrue expenses that have been incurred but not yet paid or invoiced. In addition to entering financial data in the original books of entry, the bookkeeper also reviews reports that are output from the system, to verify the accuracy and completeness with which the business transactions were recorded.
The bookkeeper or accounting clerk may have other duties including generating checks, getting signatures on checks, mailing out checks to vendors, checking the incoming mail, logging in checks received, preparing bank deposits, ordering office supplies, maintaining files of invoices with their supporting documentation and check copies, reconciling statements received from vendors to the accounts payable subledger, reconciling customer statements to the accounts receivable aging report, doing bank reconciliations, and dealing with customers, vendors, and other parties on the telephone, to answer their questions, provide them the information they need, or to resolve issues.
In an accounting department in which the different bookkeeping functions are divided up, for example, between accounts payable, accounts receivable, and payroll, the overall responsibility for the bookkeeping as a whole will probably rest with a general ledger accountant, senior accountant, or some similar position. This person will review the work of the bookkeeper, or accounting clerk in each individual area, and will pull all the areas together to produce the general ledger, trial balance, and financial reports.
In a smaller establishment, the bookkeeper will generally be responsible for recording all transactions. There may be an independent accountant who periodically reviews the books and prepares financial statements and tax returns, or the full-charge bookkeeper may have this responsibility as well. In this type of environment, the full-charge bookkeeper may also be responsible for billing customers, paying vendors, and doing the payroll.
Duties and Responsibilities
Therefore, depending on the size of the establishment, and the way its accounting system is organized, the bookkeeper could have some or all of the following duties and responsibilities:
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· Code vendor invoices with the appropriate general ledger and cost center number.
· Prepare accounts payable vouchers to record invoices and enter them into the accounts payable system.
· Generate checks or bank transfers to vendors when invoices are due for payment.
· Reconcile statements from vendors to the accounts payable subledger.
· Prepare billings to customers or clients.
· Verify invoice registers against shipping or sales reports.
· Code customer invoices with the appropriate revenue account number and enter into the accounts receivable system.
· Prepare and send or transmit customer statements.
· Prepare accounts receivable aging report.
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· Review purchases and sales register and cash receipts and disbursements register for accuracy and completeness, and make any necessary corrections.
· Prepare bank deposits.
· Do bank reconciliations.
· Keep inventory records.
· Prepare receiving reports for materials and supplies received.
· Prepare dispatch reports for products shipped.
· Enter receiving and dispatching documentation into the inventory system.
· Do physical inventory counts and reconcile to the perpetual inventory system.
·(time reports, time clock, time cards).
· Calculate the payroll and prepare the payroll register.
· Prepare payroll checks or bank deposits and pay statements.
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· Label fixed assets, and take physical inventories of fixed assets
· Calculate depreciation on fixed assets.
· Reconcile tax and book depreciation.
· Maintain petty cash fund.
· Prepare financial statements and reports.
· Provide information requested by internal and independent auditors.
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Bookkeepers normally work in an office environment, with normal business hours. There may be overtime during peak periods, for example while closing the books for the month and at year-end, when tax returns are due, or when there is an audit. If a significant amount of the bookkeeper or clerk’s time is spent accounting for inventory, the work may involve warehouse conditions, which will depend on the nature of the business. Since bookkeepers work for long periods of time in front of a computer, the work can cause eye strain, headaches, backaches from sitting for long periods of time, and the stress caused on the wrist and hands from holding and moving a mouse for extended periods. Ergonomics therefore plays an important role in the bookkeeper’s workplace.
A bookkeeper works to a great extent under self-direction, with a need for the initiative that goes along with the level of responsibility of this position. In a larger organization, an accounting clerk will generally report to a direct supervisor in the accounting department, while in a smaller establishment, a full-charge bookkeeper may report directly to the owner, or to management. A clerk in an accounting department will have contact with customers, vendors, contractors, service providers, banks, insurance companies, tax authorities, or others, depending on the area of specialization. A full-charge bookkeeper will probably have contact with all these persons.
Bookkeeping can be a demanding and at times stressful job, due to the need for concentration and accuracy, the level of contacts and interaction with people both inside and outside the organization, and the requirements of multi-tasking, especially in the case of a full-charge bookkeeper with various different duties and responsibilities.
What Are the Requirements?
Since the bookkeeper is keeping the records of the company’s financial transactions, the first requirement is for the person to be honest and trustworthy. Since the job involves confidential information, the bookkeeper must also be discreet. A successful bookkeeper will be careful, orderly, and detail-oriented. Good work habits and discipline are necessary, and good planning ability and time management skills are important attributes. A bookkeeper must have the ability to work under pressure, meeting various demands simultaneously in what is commonly a multi-task position.
A bookkeeper must be comfortable using a computer, and should be familiar with word processing and spreadsheet applications. Specific knowledge of the accounting software the company is using is very beneficial, and many job openings require knowledge and experience using a particular accounting software, such as QuickBooks.
Bookkeepers need good communications skills, in order to write letters and e-mails, and to deal with customers, vendors, and others by telephone.
The requirements in terms of education, knowledge, and experience will depend on each individual position. But in general, knowledge of generally accepted accounting principles, income tax aspects, payroll taxes, and labor laws, are all beneficial.
On-the-job training is generally provided, by a supervisor or senior-level person in the accounting department, in a larger organization. This generally includes training in company policies and procedures, and may include formal training in the specific accounting software the company uses.
Education
An entry-level position as an accounting clerk may require only a high school diploma, but an associate’s degree in business or accounting is often required. College education becomes increasingly important for bookkeeping positions in which a more thorough knowledge of accounting is required. Many times, a person with a bachelor’s degree in business administration or accounting will accept an entry-level position as a bookkeeper. In larger organizations, bookkeepers or accounting clerks with degrees generally have more opportunities for advancement to professional or management positions than those who do not have a degree. But especially in a smaller establishment, a bookkeeper with knowledge of the company and its operations, and a proven record of experience, can make a career as a bookkeeper in the company without necessarily having a degree.
The American Institute of Professional Bookkeepers (AIPB) has a Certified Bookkeeper program – a national certification program with courses offered at major colleges and universities. The course is also offered online.
What Possibilities Does a Career in Bookkeeping Provide?
The growth of the economy will generate more financial activity in general, but increasing automation and downsizing by companies is resulting in the consolidation of clerical functions. Specialized accounting clerks will generally be in less demand than full-charge bookkeepers, who will be expected to carry out many accounting functions in addition to their other administrative duties.
There is a trend toward outsourcing many of the accounting functions of a company, and many accounting clerks and bookkeepers may find opportunities in firms that provide financial services such as payroll, billing, and bookkeeping services to several different clients. Also, there may be more opportunities in temporary personnel agencies, for companies that hire temporary workers during peak periods.
Another trend, also related to outsourcing, is for accounting clerks to work part-time, and in some cases from home. Medical billing, for example, is an area that is increasingly being done by persons working by computer from their homes.
With experience and additional education, bookkeepers can move up to professional-level positions in accounting, purchasing, auditing, or human resources, in the same company or in another. And, while there may be a certain degree of specialization in a certain industry or business, a bookkeeper with the right knowledge and experience can make the transition.
