What Does a Bookkeeper Do All Day?
This one’s for my fellow number lovers – and even those who aren’t quite sure yet…
Day in the Life of a Bookkeeper
Morning: Reviewing and Recording Financial Transactions
Pro tip
Don’t talk to bookkeepers if they haven’t had their morning cup of coffee, yet. It’s a non-negotiable.
Mid-Morning: Managing Accounts Receivable and Payable
Next, bookkeepers turn their attention to accounts receivable and payable – the lifeblood of any business. They send out invoices for completed projects and collect payments from clients. They also pay the bills (e.g., rent, utilities, supplies, inventory).
It’s crucial that bookkeepers monitor both receivables and payables in order to strike a balance between prompt payment collection and maintaining good relationships with vendors. This delicate dance is essential to keep cash flow healthy and businesses afloat.
Lunchtime: Taking a Well-Deserved Break
Pro tip
Even with all my years of experience, I’ve had my fair share of “Why is my work day taking so long?” thoughts, too. But that’s the thing – I’m a bookkeeper, not a gatekeeper. In order to overcome your afternoon slumps, make sure to eat energy-boosting snacks (e.g., nuts, yogurt, whole-grain crackers) and have refreshing drinks that don’t rely on excessive caffeine or sugar.
Afternoon: Reconciling Accounts and Payroll Processing
1:00 pm to 3:00 pm
As the afternoon rolls around, bookkeepers like Bailey typically begin the process of reconciling accounts. The company’s financial records should match bank statements, credit card statements, and other documents. Everything should be in the books.
Bookkeepers also gather the necessary information, such as hours worked and pay rates, to calculate each employee’s paycheck. They handle tax withholdings, superannuation contributions, and any other deductions, ensuring that employees are paid accurately and on time, every time.
This task is not just about crunching numbers; it’s also about fostering a sense of trust and loyalty among employees. When everyone’s pay is handled with care and precision, the team can focus on their work, knowing that their financial well-being is in good hands.
Evening: Wrapping Up and Planning for the Next Day
5:00 pm to 6:00 pm
Types of Bookkeeping
| Single-Entry Bookkeeping | Double-Entry Bookkeeping | |
|---|---|---|
Description | This system is suitable for small businesses and involves recording transactions in a cashbook or a simple spreadsheet. The main focus of single-entry bookkeeping is to keep track of cash inflows and outflows.
It's a bit like a financial boomerang – what goes out must come back in. | This is a more advanced method of bookkeeping, which is widely used by larger businesses and organizations. There at least two entries for each transaction (a debit and a credit). These entries are made in corresponding accounts, such as assets, liabilities, equity, revenue, and expenses, to ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced. |
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Bookkeepers Versus Accountants
In the world of finance, bookkeepers and accountants are often seen as two sides of the same coin. Both professions play crucial roles in maintaining a business’s financial health, but they serve distinct functions and possess unique skill sets.
Simply put, you can consider bookkeepers as financial record-keepers. They are responsible for the day-to-day management of a company’s financial records. They make sure that all transactions, such as sales, purchases, payments, and receipts, are accurately recorded and organized.
On the flip side of the same coin, accountants analyse the financial information, provide tax planning advice, as well as prepare in-depth financial statements and accurate tax returns.
We Offer Worry-Free, Hassle-Free Bookkeeping Services for Small Businesses in Australia
As I reflect on my 15-year journey in the world of bookkeeping, I am filled with not only gratitude but also respect for those who chose the same career path as me. Over the years, I’ve had the privilege of working alongside countless clients, helping them navigate the complexities of their finances while ensuring accuracy and fostering growth. The satisfaction I derive from supporting small businesses and witnessing their successes remains unparalleled.
In light of the ever-evolving business landscape, I am proud to offer my stress-free virtual bookkeeping services tailored specifically to the needs of small businesses across Australia. Let The Bookkeeping Studio handle the books, while you focus on what truly matters – your vision and goals. Get in touch with us today.
