Monday, January 28, 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 play critical roles in the structure of businesses that do not have the need for a full time accountant. Bookkeeping in these companies doesn't require an advanced degree. Duties vary depending on the business of the company and what size it is. Most companies retain accountants to take care of the annual tax returns. Beyond that it is the responsibility of bookkeepers to manage the finances of the company.

Bookkeepers are responsible for all accounts, both payable and receivable. When invoices come in, bookkeepers input them into the computer system and then issue checks that correspond to the invoices. They also send bills to customers for goods and services they have purchased. When customers are late making payments, it is usually the bookkeepers who have to call and remind them to make their accounts current.

Most of the time bookkeepers handle payroll. They may process paychecks inhouse or send the information to an outside firm that cuts the checks. Bookkeepers are usually responsible for handling payments to commissioned salespeople, collecting time cards of hourly employees, and monitoring the payments of salaried staff. They also process expense reports for reimbursement and handle 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.

The monthly and quarterly tax returns that must be filed are usually the responsibility of bookkeepers. These employees also handle payroll and unemployment taxes. They must fill out and send in all the required forms and payments that go along with the returns. Sometimes companies trust the annual corporate returns to their bookkeepers. It is more customary however for a CPA to be called in to handle annual returns.

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.

The national average salary for bookkeepers is a little less than forty thousand dollars per year. In certain areas experienced bookkeepers earn slightly more than thirty thousand dollars a year. In other parts of this country the salary is almost fifty thousand.




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