Bookkeeper

Systematic, accurate and verified records of daily transactions help businesses and other organisations manage their finances efficiently and effectively. Supported by accounting software and cloud-based bookkeeping, Bookkeepers assist enterprises in maintaining their accounting ledgers, recording journal entries of payments received and invoices paid, and producing financial statements.

What do Bookkeepers do?

• Track and manage the financial data of entities by creating, maintaining and monitoring financial records for their employers or clients, ensuring accuracy, attention to detail and compliance with legislation and accounting standards.
• Work within a company's in-house accounting department or as part of an accounting firm's team that manages accounts receivable and payable, journals and general ledgers for several clients.
• Use bookkeeping software, spreadsheets and other databases to enter financial transactions, client payments and invoices into electronic databases and carry out period-end adjustments.
• Track debits (incoming money) and credits (outgoing money) for each account; balance accounts and manage budgets on a daily or weekly basis.
• Gather and summarise information to produce reports that enable data analysis by accountants; compile financial reports and statements, including balance sheets, income statements and statements of cash flows.
• Draw up cheques and make bank deposits; gather, organise bank statements and reconcile bank accounts for the business every month.
• Detect, calculate, report and reconcile any discrepancies in company records and reports; explore and identify likely reasons for the errors or differences in expected versus actual balance amounts.
• Carry out administrative duties for the accounting team as required; make copies of all receipts and critical documents for reference; file the necessary paperwork, including accounting documents and financial statements.
• Communicate with customers, suppliers and banks and maintain the petty cash fund.
• Help with or conduct payroll calculations and ensure that payments are made to employees within the given timeframe.
• Calculate preliminary tax entries; compute and record depreciation for bookkeeping and tax payments; report to internal or external supervising accountants in charge of filing taxes.
• Order or buy company supplies; calculate and record the cost of inventory; generate or pay invoices for credit card bills or purchase orders for inventory.
• Collaborate with accountants to manage VAT (value-added tax) returns where applicable.
• Prepare sales tax reports and worker's compensation reports.
• Stay up to date with the latest bookkeeping and accounting software, procedures and legislation.

Bookkeepers are mostly office-based and located in-house within the accounts department as part of a team. They carry out most of their work seated at a computer, using accounting software. If you work for a Bookkeeping service provider and are hired by several firms or if you freelance and work for multiple firms, you will likely need to visit your clients' places of business. However, you may also work from home or other locations if you have access to a laptop or computer.

Bookkeeping typically continues at a steady pace though is often repetitious and requires careful attention to detail and accuracy. Bookkeepers may work alone but also collaborate with other departments' accountants, managers and auditing clerks as needed at times. Customer service skills are necessary, as you may need to answer questions asked by your colleagues, clients or customers about their accounts.

Any academic program that a potential Bookkeeper takes up typically requires a period of supervised experience, such as an internship. Apprenticeships are also an avenue to build work experience, earning and learning simultaneously. Bookkeepers will benefit from tasks outside the classroom that align perfectly with lessons inside it. Volunteering as the treasurer of a university society can help you chalk up your bookkeeping experience. Summer internships, part-time work at an entry-level position or short-term paid/voluntary work in local companies or accountancy firms offer a taste of business finance, give valuable insight into how a company or institution operates, observe financial professionals, help build useful contacts and improve one's prospects of getting a permanent job.

Direct applications to companies or accounting firms may land you entry-level jobs that provide on-the-job training to help you gain work experience and progress in your field. Keep in mind that, in addition to fulfilling other criteria, work experience may be an additional requirement in acquiring specific certifications and credentials, such as MAAT (which signifies full membership of AAT or the Association of Accounting Technicians and the right to use the designatory letters after your name).

Although the educational requirements of a Bookkeeper's job vary with its scope of responsibilities and the size and nature of the business, a high school diploma or equivalent is typically adequate to land entry-level jobs and learn the ropes through on-the-job training. Some employers may enrol you into their internship or placement programs, which provide practical training, following which you may land a permanent job or opt to freelance.

Given the growing use of electronic computing, some companies may expect candidates to have relevant experience or training or hold post-secondary certificates in manual and computerised bookkeeping, accounting or ICT. Employers also value candidates who have taken some college coursework in financial mathematics, computer systems, economics, business law, accounting software, managerial accounting or auditing since it provides aspiring Bookkeepers with the necessary skills and knowledge to succeed.

Aspiring Bookkeepers may also earn an associate degree from community colleges, junior colleges, online universities, or certain four-year institutions. Or, depending on location, you may opt for a professional diploma in accounting, such as the one offered by the Association of Accounting Technicians (AAT). Bookkeepers must complete the required continuing education each year to maintain their designations.

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years. Bookkeepers working in smaller organisations may achieve career progression by assuming greater responsibilities, such as reporting on business performance to senior management and recommending ways to boost company earnings and profits. With experience, further educational qualifications and credentials, Bookkeepers in larger organisations may advance to higher roles within the same enterprise, such as Senior Bookkeeper, Finance Officer, Tax Analyst, Payroll Manager and Accounting Manager.

Equipped with entrepreneurial skills and having built business acumen, adequate experience and a solid network, motivated Bookkeepers may boost their careers by launching their own bookkeeping or accounting services firm or freelancing. The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills. Studies prove that job hopping, earlier dismissed as "flaky" behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and interesting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way.

Candidates with the necessary mathematical skills, attention to detail, bookkeeping experience, training in accounting software, and formal qualifications in accounting or a related field supported by relevant credentials have the best job prospects. Continuing professional development (CPD) will help an active Bookkeeper build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. Bookkeepers can remain competitive by staying current with technology, which includes learning new accounting software to automate routine tasks and developing data analysis skills.

Any certification you earn typically requires you to complete the requisite CPD or continuing education (CE) to maintain or renew it, thereby helping Bookkeepers stay updated with the latest technological tools, accounting procedures or legislative changes. Bookkeepers help businesses document transactions systematically, maintain and update financial records accurately, pay and issue invoices on time, and generate reports representing a company's financial standing.

Thus, the role of a Bookkeeper is distinct from that of an accountant, CPA and auditor in its educational requirements, requisite skills and knowledge, and scope of responsibilities.

Some Tools That Bookkeepers Use:

• Accounting software, such as Quickbooks or Xero, is useful for Bookkeepers to generate and file financial reports and documents that adhere to industry standards.
• Single-entry bookkeeping records each transaction as a single journal entry.
• A double-entry bookkeeping system is used by businesses that conduct complex and capital transactions.

Types of Bookkeepers:

• DIY: Some business owners wish to take charge of their bookkeeping responsibilities.
• In-House Professionals: Business owners may employ one or more in-house Bookkeepers.
• Remote or Virtual Bookkeepers: Professionals who render their expert bookkeeping services remotely.

Current Scenario:

Technological advancements in bookkeeping software that automate various routine tasks are expected to reduce the demand for traditional Bookkeepers over the next few years.

Potential Pros & Cons of Freelancing vs Full-Time Employment:

Freelancing Bookkeepers have more flexible work schedules and locations, while full-time Bookkeepers have job security with a fixed, reliable source of income. All the tasks that Bookkeepers perform, manually or electronically, add up to help diverse organisations stay financially disciplined, healthy and stable.