Have you ever wondered what a bookkeeper does all day? Read this blog to learn from our Leeds-based bookkeepers.
The term “bookkeeper” can be perplexing to some. Although the terms' bookkeeper and accountant are frequently used interchangeably, bookkeepers and accountants have quite different responsibilities in businesses.
The mistake is natural, given that both jobs are largely concerned with financial management. The problem stems from some business owners' misunderstanding of what a bookkeeper does and, as a result, missing out on their benefits or expecting an accountant to handle bookkeeping.
To assist you to understand what a bookkeeper does and why you should hire one, our team of qualified bookkeepers in Leeds will explain what a bookkeeper does and why you should hire one.
What Is the Difference Between an Accountant and a Bookkeeper?
In the most basic sense, an accountant is a financial professional who can advise you on all financial aspects of a business. A bookkeeper, on the other hand, is a data entry specialist whose major responsibility is to create and maintain correct business records. Business owners and accountants frequently rely on the information gathered by a bookkeeper to make financial choices.
Bookkeeping is a subset of accounting firms UK that can be performed by an accountant or a person with bookkeeping skills, which is most likely where the mistake comes from. They frequently generate financial reports and tax returns for businesses, offering the most basic and necessary financial architecture from which more complicated accounting operations can be performed.
What Exactly Does a Bookkeeper Do For My Company?
Recording and managing financial data is more sophisticated than just pasting receipts into a spreadsheet, and bookkeepers are in charge of a wide range of responsibilities beyond simple data entry.
Bookkeepers must have a thorough understanding of and expertise with specialised accounting software in order to be effective at their jobs. This enables them to develop advanced data records that can provide a number of precise reports, ranging from gross profit to specific expenditures. Data reconciliation is another responsibility of bookkeepers, who ensure that records match bank statements and cash transactions.
The following are some of the other obligations and tasks that a bookkeeper will be responsible for:
- Interest and investment calculations
- Taking care of business debts
- Keeping track of asset depreciation is essential.
- Putting money aside for corporate tax
- Invoice creation
- Keeping track of buying orders
- pursuing payment from debtors
- Creating a report on elderly debtors and creditors
- Customers' checks are accepted as payment.
- Suppliers and creditors, such as HMRC, must be paid.
Is it necessary for me to hire a bookkeeper?
Bookkeeping is an essential business function without which you will be unable to make sound financial decisions. Often, it is the accountant's job to emphasise the importance of a bookkeeper, an accountant who may have even been recruited to assist in the management of a financial issue that could have been averted with the help of a bookkeeper.
While business owners can handle their own bookkeeping, we recommend that you hire a professional bookkeeper to assure the quality and integrity of your financial data. This also frees up time that could be better spent elsewhere by ensuring that business owners are not enslaved by paperwork and record-keeping.