What is a Bookkeeper?

A Bookkeeper is responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, invoices, and payments. They will record financial data into general ledgers, which are used to produce the balance sheet and income statement.

The bookkeeper is generally responsible for overseeing the first six steps of the Accounting Cycle, job while the last two are typically taken care of by an accountant. While there is a general overlap between the two professions, there are a few distinctions that are later discussed in this article.

What Does a Bookkeeper Do?

Being consistent, accurate, and minimizing errors are key characteristics that employers are seeking for this position. It is indispensable to have a knowledge of accounting and to understand how to use accounting software systems.

In larger businesses, a bookkeeper is responsible for overseeing and reconciling hundreds of financial transactions. This is typically done with the assistance of various software systems, and for this reason, technology literacy is incredibly valuable for the profession. A few other relevant skills and job duties would include the following:

Relevant Skills and Knowledge

Basic accounting knowledge

Understanding accounting best practices
Knowledge of IFRS, U.S GAAP, or another accounting framework
Data entry skills
High attention to detail Proficiency in Microsoft Excel
Produce work with a high level of accuracy
Professionalism and organization skills
Associate degree or at least one year of experience
Knowledge of XERO, Quickbooks, Zoho, Fresh Books, or other applications

Job Duties and Responsibilities

- Maintain an accurate record of financial transactions
Update and maintain the general ledger
Reconciliation of entries into the accounting system Recording of debits and credits
Maintain the trial balance, job by a reconciliation of general ledgers
Account to assert the accuracy of transactions
Use knowledge of local laws to comply with reporting requirements
Monitor any variances from the projected budget

Bookkeeper Salary Range

A bookkeeper can expect to earn a salary in the range of $30,000-$60,000 a year in the US. However, compensation will widely vary depending on the employer, location, and candidate experience. Bigger companies tend to offer better compensation for bookkeepers