What does a bookkeeper do?

What is bookkeeping?

Annual financial report

Bookkeeping is the process of recording, classifying and tracking every financial transaction in your business. This means as a business owner you’ll be able to see what you spend, where you’re spending it, what are your profits and where are your losses. 

You will know exactly how much you spend and how much you are receiving in your business.

These tasks were performed by a bookkeeper using books and ledgers to record the transactions, and that’s where the name bookkeeping comes from.

Transactions used to be written in daybooks, cashbooks or journals and journals and then transferred to the general ledger..

Later spreadsheets were used as computers became more common and accessible. 

                               

Online accounting software

Bookkeeping software like Quickbbooks Online, Xero and Sage Accounting have replaced spreadsheets and they offer many advantages that save you time and money. Bookkeeping and accounting software streamline your financial record keeping, while giving you an overview of your business. It shows you the profits and losses, expenses and also provides you with weekly, monthly and annual financial reports for tax purposes.

What does a bookkeeper do?

Bookkeepers duties can be defined as follow: They create (capture) accurate financial information of the business on a daily basis, create and maintain financial reports about the business in a detailed manner.