To be a better business owner understanding the roles and limitations of a bookkeeper’s responsibilities is crucial. The responsibilities of a bookkeeper should be data entry related activities. Accounting is the recording, classifying, and summarizing economic events for managers to make decisions. Many business owners make the mistake of relying too heavily on the bookkeeper in order to save money short term, when long term it is a poor business decision since a bookkeeper’s training does not extend beyond the basic accounting tasks.
At the very most a good bookkeeper’s responsibilities should not exceed the following accounting activities:
- Records daily/weekly deposits.
- Process weekly check requests and reimbursements.
- Tracks and reconciles petty cash accounts.
- Process weekly payroll.
- Reconcile all bank and credit card accounts on a monthly basis.
- Enter new budget annually.
- Providing timely and accurate reports and bookkeeping statements, including:
- Accounts payable aging report
- Accounts receivable aging report
- Cash disbursements
- Cash receipts
- Prepare accounts receivable invoices to customers and maintain the A/R ledger.
- Generation of month-end customer statements.
- Timely enter vendor invoices into the accounting system.
- General ledger reconciliations and month-end close.
As the manager/entrepreneur you shouldn’t expect more than the accounting activities shown above. While these bookkeeping responsibilities are a critical first step to getting started in managing you business’s financial affairs, there are just the first step. Numbers on their own are just that numbers.
The Shared Finance Center provides outsourced accounting, bookkeeping and fractional CFO support to small business owners and in doing so we heavily focus on maximizing cash flow. We are headquartered in Roswell, Georgia and work with clients across the United States. If you think that this post would be helpful to anyone you know, please pass it along. Also please follow our blog for regular tips to grow your business.