What is a Bookkeeper?
A bookkeeper is a trained and qualified professional who records financial transactions and produces financial records for the businesses.
Bookkeepers deal with tax returns on your behalf. They enter all the relevant data into accounting software and deal with a whole set of tasks outside data inputting and accounts reconciliation.
Bookkeepers have an in-depth understanding and experience with accounting software. This enables them to produce various reports such as profit and loss, gross profit and net profit margin percentages, specific expenditure tracking and more.
What does a Bookkeeper do?
A bookkeeper will usually perform the following tasks on a regular basis:
- Use specialised bookkeeping software to record financial transactions
- Record bank, cash and cheque transactions
- Record sales and purchase invoices and allocate them to the correct account
- Ensure bank accounts are reconciled
- Calculate VAT due and file the returns with HMRC
- Process payroll and submit RTI returns to HMRC
- Calculate pension contributions and submit to pension provider
- Produce reports, such as profit & loss, balance sheet, accounts payable and accounts receivable
- Check figures, postings, and reports for accuracy
The records a bookkeeper works with include:
- Expenditure – money spent
- Income – money received
- Accounts payable – invoices to be paid
- Accounts receivable – what customers owe the business
- Profit and loss – a report that shows the business’ financial health
A bookkeeper is often responsible for some or all of the business’ accounts, known as the general ledger. They record all transactions and post debits and credits. They also produce financial statements and other reports for managers and business owners. Bookkeepers can manage banking and supplier payments. In addition, they may handle payroll, make purchases, prepare sales invoices, and keep track of overdue accounts (credit control).
Do I need a Bookkeeper?
Bookkeeping is a vital part of every business. Get it right from the start and it will provide you with valuable information to make informed business decisions and, of course, peace of mind that your records are accurate. While bookkeeping can be done by the business owner or their partner, accountants do recommend that a qualified bookkeeper is engaged to ensure the quality and accuracy of financial records. Putting your records together is a time consuming task – your time is better spend working on the business.
Ready to hire a bookkeeper? Our expert bookkeepers are here to help and free up your time for the things that matter to you most.