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what exactly does a bookkeeper do

When running a business, you can’t keep a count that where your money is going. Understanding the financial records is becoming essential to making right decisions.  That’s where a bookkeeper comes in. But what exactly does a bookkeeper do? Most of the people assume that bookkeeper and accountants are same, but the role for each is unique and essential in its own way. In this blog, we’ll make you understand with all necessary explanations that what you are searching for, let’s begin.

What are the Duties of a Bookkeeper?

Bookkeepers handle several key duties, including:

Recording Transactions: This involves accurately entering financial transactions into the appropriate accounts. These could include sales, purchases, payments, and receipts.

Bank Reconciliation: Bookkeepers regularly reconcile business accounts with bank statements to ensure everything is aligned.

Managing Payroll: Some bookkeepers also handle payroll duties, ensuring employees are paid on time and taxes are deducted accurately.

Preparing Financial Statements: At the end of each period, bookkeepers prepare reports like income statements and balance sheets to give an overview of the company’s financial standing.

Their responsibility is not just to record but to keep everything up-to-date and organized, which is crucial for smooth business operations. For businesses, professional accounting service Santa Monica providers can assist with accurate and efficient bookkeeping.

What Skills and Education Required to Be a Bookkeeper?

To excel in bookkeeping, professionals need specific skills, including:

Attention to Detail: Bookkeepers must ensure accuracy in recording financial transactions and preparing reports.

Knowledge of Accounting Software: Familiarity with software like QuickBooks or Xero is essential to perform bookkeeping tasks efficiently.

Organizational Skills: Managing multiple transactions and organizing them for quick access is key.

Basic Accounting Knowledge: Although bookkeepers are not accountants, they should have a fundamental understanding of accounting principles.

Bookkeepers typically hold a degree in accounting, finance, or business, though some gain certification in bookkeeping or accounting software. If you’re looking for an accounting firm Santa Monica CA, ensure they offer certified and experienced bookkeepers.

How a Bookkeeping Service Benefits Your Business

Outsourcing bookkeeping can offer numerous advantages to businesses:

Time Savings: By outsourcing bookkeeping, businesses save time and can focus on operations and growth.

Cost Efficiency: Hiring a full-time bookkeeper can be expensive. Outsourcing provides access to expertise without the overhead.

Improved Financial Management: Professional bookkeepers help businesses maintain accurate financial records, allowing for better decision-making.

Expert Advice: Bookkeeping services can offer valuable financial advice and insights that help businesses grow.

Interactions with a bookkeeping Santa Monica service ensures that your financial records are maintained correctly and efficiently, with minimal effort on your part.

Does a Bookkeeper Have Payroll Duties?

Bookkeepers can handle payroll duties, though this depends on the business’s needs and the complexity of its payroll. Tasks typically involve calculating employee salaries, withholding taxes, issuing paychecks, and ensuring compliance with tax laws.

In smaller businesses, bookkeepers may handle all payroll duties. In larger companies, these tasks might be handled by a separate payroll specialist or an accounting firm. If you’re in Santa Monica and need reliable payroll services, consider consulting with an accounting firm. 

What is the Difference Between a Bookkeeper and an Accountant?

This is where a lot of confusion happens. Both work with financial data, but their roles are different.

Bookkeeper

Records and organizes daily financial transactions, maintains ledgers and reports and prepares basic financial statements.

Accountant

Analyzes financial data, offers tax advice and planning and helps with audits and long-term financial strategy

In smaller businesses, bookkeepers may handle all payroll duties. In larger companies, these tasks might be handled by a separate payroll specialist or an accounting firm.

Is Bookkeeping a Good Career Option?

Yes, bookkeeping can be a stable and rewarding career choice. With businesses growing in size and complexity, skilled bookkeepers are in demand. The job offers stability, the ability to work independently or in an office, and opportunities for growth within accounting.

Final Thoughts

So, what exactly does a bookkeeper do? In short, they keep your financial world organized. From tracking daily expenses to ensuring payroll runs on time, bookkeepers are the backbone of a well-run business. They help you stay on top of your finances without the stress. Whether you’re a small business owner or part of a larger company, investing in professional bookkeeping services is the smartest move. What exactly does a bookkeeper do? They track daily finances, manage records, assist with payroll, and support smart business growth. They keep your numbers clean so your business stays strong.

If you are in-search for the professional assistance, Jarrar CPA offers reliable bookkeeping and accounting services that will support your business to grow in every step of the way!

Also Read: What are the Main Objectives of Tax Planning?