What is A Bookkeeper?


Posted By

Jan 1st, 2011
What is A Bookkeeper?

A bookkeeper is an employee entrusted with the company’s financial books. This person enters all the data and transaction from your business into an accounting software which is then used to generate multiple financial reports by an Accountant.

Accounts Receivable is the individual in charge of sending out invoices and friendly reminders of open balances to your customers to ensure timely payment.

Accounts Payable is the person in charge of scheduling payments to your vendors. Without this person, you’ll acquire late fees and interest charges from your outstanding balances.

An accountant then reviews the data and compiles reports that are easy to read for the owners of a company, the finance department, and the marketing department. However, in most small businesses, the accountant will perform financial duties and create budgets for the company, as well.

A full charge bookkeeper is one who does all of the previous job titles plus more! They replace an accountant, however, they may not have an accounting degree or a CPA license to be classified as an accountant.

In order to prevent or limit employee fraud, most companies will separate different duties between members of the accounting department.

Purchase orders are used to create a list of items that are needed for inventory. Generally, a company will have a buyer who generates the P.O. and a manager will approve it by signing it off. Another way to prevent fraud is in the case of the P.O. being a high amount, it may be necessary to have approval from someone higher than the store manager.

When receiving inventory, managers assign an employee other than the buyer to receive the inventory, should print out a purchase order form with the quantities blacked out.

What this does:
1. Prevents the buyer from overstat
2. This insures that the employee will count the quantity of inventory being received instead of simply writing down the quantity of inventory that is suppose to be received from the purchase order.

1 Comment

  • It’s in point of fact a nice and useful piece of information. I am happy that you shared this useful info with us. Please keep us up to date like this. Thanks for sharing.

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