Bookkeepers spend their time performing general bookkeeping duties. They use basic math and accounting skills to enter information into the computer. According to the Bureau of Labor Statistics, the pay of the bookkeeping clerk will vary, but on average, they’ll earn approximately $38,000 annually. The duties of a bookkeeping clerk will depend on what kind of accounting department is available at the company. Most small businesses have one bookkeeping clerk who does daily tasks and consults with an accountant over more complicated financial matters. Read on to learn more about the job duties of a bookkeeper.
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Accounts Receivable
A bookkeeper clerk will bill customers and apply payments directly to their account using accounting software. The payments can come from customers, vendors or clients depending on the kind of business and the people who pay for products or services. Payments can come in the form of electronic deposits, checks or cash. Some businesses have the ability to take payments in the form of credit card transactions, and the bookkeeping clerk must understand the flow of those transactions.
Accounts Payable
From the cash balance of the company, the bookkeeping clerk can be responsible for making payments for services to vendors. This is an accounts payable duty that can be given to the bookkeeping clerk if the company doesn’t have a separate department for it. The payments could be utility payments, Internet charges or payroll for the company. The kind of business will dictate the type of payments that will flow from the bank balance of the business. There are always recurring costs that have to be paid monthly or yearly while there are other one-time payments to be made for materials or products.
Reconciling Bank Accounts
The checks and other payments that are brought in during the course of business must be deposited in the bank. While some payments will be deposits or wire transfers directly to the account, there are times when the bookkeeper will have to deposit cash and checks in the bank physically. Along with banking duties, the bookkeeping clerk will be required to ensure that the payments and receivables are reconciled correctly in the ledger.
Generating Reports
The bookkeeping clerk will generate reports for other departments regularly. A common report generated by bookkeepers is the balance sheet, which is typically requested by the owner. It’ll detail the company’s transactions and the current net worth of the company. Assets and debts are detailed in a balance sheet. Other reports a bookkeeper produces are the income statement, which covers revenue, expenses and losses for the company through a certain time frame and cash flow statement, which details the company’s net income and financing data.
Working with Accountant
There are some bookkeeping clerks who will perform all the duties of an accountant, which includes payroll and taxes for employees as well as taxes for the company at the end of the year. In small companies, the bookkeeping clerk will do all of the work. In medium to larger companies, the bookkeeper will work closely with an accountant for more complicated accounting duties.
The role of the bookkeeping clerk is determined by the needs of the company. The clerk might perform all the duties within the company including payroll and taxes for the year. It will depend on the individual company.
