You have probably heard about bookkeeping more than once and you know that it is a part of any business. With the help of bookkeeping, owners and managers constantly receive reliable information about:
- Assets that they own;
- How much money they give to the state in the form of taxes, and how much remains at their disposal;
- Amount of debt to suppliers, partners, and other entities;
- The volume of the company’s activities, the effectiveness of work – profit or loss, and much more.
An entrepreneur can organize bookkeeping using one (or more) of the following options:
- Do it yourself
- Hire an in-house bookkeeper
- Get help with bookkeeping from a professional company.
Today, we will try to answer the following questions: What is a bookkeeper? and What is a bookkeeper needed for in a business?
What is a bookkeeper?
You now know that bookkeeping is important for every business, both a start-up and a multi-million company. But what is a bookkeeper and what exactly does one do? In short, a bookkeeper is a person who records the transactions of a non-profit or for-profit organization.
This job involves keeping track of its debits (money going out) and credit (money coming in). Other roles of this individual may include preparing and sending invoices, receiving and recording payments, paying expenses, processing payroll, and preparing and filing taxes. Nowadays, bookkeeping software assists bookkeepers in completing many of their tasks.
The profession of a bookkeeper has many advantages. This type of activity, despite the difficulties, is very multifaceted and requires a wide range of skills, constant self-development, and personal growth.
What is a bookkeeper needed for?
Many people think that if there is accounting software, then one does not need a bookkeeper. Earlier, the bookkeepers did everything themselves, but now everything is done by the bookkeeping programs. However, this is only partially true. So, what is a bookkeeper needed for in a business?
In order for the software to turn into a tool that allows the bookkeeper to maintain accounting records, it is necessary to enter the initial data into the program and adjust numerous settings to ensure that everything is being done correctly.
Once everything is set up, the bookkeeper still has to check from time to time that all the transactions are recorded and categorized correctly. Moreover, some of the work still has to be done correctly. For example, not all invoices can be automized and the same goes for payroll. In addition, physical receipts and cash transactions need to be entered into the program.
Besides entering the accounting data and making sure it is recorded correctly, a bookkeeper has to follow all the changes in legislation and ensure that the company’s financial record, reporting, and other activities are in compliance. However, the work of a bookkeeper is not limited to this.
In general, bookkeeping is a valuable tool that helps managers plan and control the activities of the enterprise, make correct and thought-through decisions. A bookkeeper is able to present all the financial data in a meaningful way and explain what all the reports and numbers can tell the reader. That is why managers and bookkeepers work closely together.
So it turns out that the bookkeeping software can do everything, but not by itself, but with the help of a bookkeeper and under their knowledgeable control. As of today, no one can fully substitute a bookkeeper, even the smartest program.