Thursday, January 24, 2019

What Are The Responsibilities Of A Small Business Bookkeeper

By Ryan Burns


Not everyone is cut out for college. A lot of high school graduates decide to go to technical schools or take some courses at a community college. In small towns and rural areas especially there are good jobs available for those who decide they prefer a quieter life. If you're looking for a decent job in a rural community, and you enjoy working with numbers, you might consider becoming a small business bookkeeper.

Bookkeepers have important roles in the lives of companies that can't justify hiring full time accountants. Advanced degrees aren't required, and the duties will vary depending on what the company does and how large it is. Most businesses use CPAs to handle their annual tax returns. They sometimes retain accountants to come in and go over their books once or twice a year. Beyond that they depend on their bookkeepers to manage the day to day financial responsibilities.

Bookkeepers are responsible for accounts receivable and accounts payable. This involves the employee inputting monthly invoices in a computer system and then issuing the checks to pay the invoiced amounts. Bookkeepers also bill customers for the services or products the company sells. She creates company invoices and mails them out. It is often the responsibility of bookkeepers to call customers who have delinquent accounts and arrange payment.

Payroll is something most bookkeepers are responsible for. They may actually process the paychecks in house or print payroll reports for an outside agency to process the checks. Commissions paid to salespeople, the collection of employee time cards, and overseeing payments to salaried employees are all part of the duties of this employee. Bookkeepers process reimbursement reports and handle payment of any wage garnishments.

The daily banking business is handled by bookkeepers. They make all the deposits and enter them into the company's accounting software program. If the company accepts payment by credit card, bookkeepers have to reconcile and monitor those accounts. They send, receive, and post wire transfers. The monthly bank statement reconciliation is the responsibility of bookkeepers. If any of the accounts show discrepancies, this employee must figure out what the problem is and make any corrections necessary to balance them.

Many inhouse bookkeepers file monthly and quarterly tax returns for their businesses. They handle the unemployment and payroll taxes. Any necessary forms and payments required to accompany the returns are processed by the company bookkeeper. Some bookkeepers are even responsible for the annual corporate returns of their employers. More often the business retains the services of a certified public accountant.

Bookkeepers are expected to run reports for their employers that show monthly cash flow. They print out and send workers compensation and pension reports to the various state and federal government entities that require them. If the business they work for is audited, it is the bookkeeper's responsibility to work with the auditors, supplying all the reports and other information necessary for them to complete their work.

According to the Bureau of Labor Statistics, the average salary for bookkeepers is slightly more than thirty-eight thousand dollars a year. On the low end salaries were just over thirty thousand. On the high end it was nearly fifty thousand dollars a year.




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