A bookkeeper is responsible for maintaining the books of a business. They process all the financial paperwork that a business receives such as sales invoices, purchase invoices, bank statements and expenses, recording these transactions into either an accounting software or bookkeeping spreadsheet. Once recorded it is the bookkeepers responsibility to filing all paperwork & documentation in a manner that is appropriate to the business, since you are legally required to keep accounting records for 6 years.
A bookkeeper can become very familiar with a business since they are involved looking at day to day transactions as well as being responsible for confidential business information so it is common that a bookkeepers skillset can extend into things like:
- Managing payroll
- Managing suppliers
- Filing VAT returns
- Credit control
- Setting up business processes
- Producing a trial balance for auditors and accountants.
The information that the bookkeeper collates is used up by accountants who may analyse business performance, prepare accounts and fill out tax returns. So a bookkeepers job is the fundamental starting point for Tax & Accounting and it is essential that they record every financial transaction as accurately as possible.
What is Bookkeeping?