What does a bookkeeper do?

What is a bookkeeper? What does a bookkeeper do? Understanding what a bookkeeper does is key for businesses looking to keep their finances on track and avoid costly errors. From tracking sales and purchases to handling payroll and reconciling bank accounts, a bookkeeper's responsibilities help maintain the financial stability of a company. Let’s find out all this information with aniday.com in this article.

Bookkeeper's responsibilities help maintain the financial stability of the company

What is a bookkeeper?

A bookkeeper is typically hired by small to medium-sized businesses or organizations to handle and document the extensive range of daily transactions. These transactions may include sales, purchases, payroll management, tracking debits, collecting customer payments, and settling bills. Once these transactions are recorded, an accountant or the business owner will review the bookkeeper's entries, making necessary adjustments before finalizing the company's financial statements for distribution.

What does a bookkeeper do?

Bookkeepers assist businesses in maintaining their financial stability by monitoring various accounts, transactions, and reports. They gather, organize, and manage the company’s financial records, such as cash flow statements, reconciliation reports, and profit and loss statements, ensuring everything is accurately documented.

Bookkeepers enable business owners and accountants to create budgets, analyze trends, and plan for future growth.

Typical bookkeeping responsibilities consist of:

• Entering data and recording transaction details for both incoming and outgoing bank accounts.
• Using bookkeeping software, spreadsheets, and databases to keep track of debits, credits, and financial transactions up to date.
• Managing invoices, whether issuing or paying, for credit card bills or inventory purchases.
• Handling payroll processing.
• Creating and preparing financial statements, such as balance sheets and income statements.
• Maintaining accurate financial records, and regularly reviewing them.
• Identifying, and resolving discrepancies in financial reports.

What does a bookkeeper do? What tasks does a bookkeeper handle?

How to select the right bookkeeper?

If you're considering hiring a bookkeeper, several factors can affect your decision. Here are some tips to help you select the right one for your business:

• Assess your business needs: Determine your specific bookkeeping and accounting requirements, whether it's basic data entry, financial analysis, or assistance with payroll and tax preparation. Consider which tasks you prefer to handle yourself using bookkeeping software.
• Review qualifications and experience: Look for bookkeepers with the right credentials and experience. Check if they are certified in relevant software and have experience working with businesses similar to yours.
• Evaluate your budget: Set a clear budget for bookkeeping services beforehand. Request a detailed breakdown of their fees and what services are included to ensure they align with your financial plan.
• Consider communication preferences: Decide how often you need to communicate with your bookkeeper and how comfortable you are discussing financial matters. Clear and frequent communication is key to maintaining accurate financial records.

The right bookkeeper has enough qualifications to review, consider, and evaluate skills.

How much is a bookkeeper's salary?

A bookkeeper’s salary can vary based on factors such as location, experience, and the size of the company. In the United States, the average annual salary for a bookkeeper was approximately $48,000 as of 2023. Salaries can range from around $35,000 to $65,000 per year, with higher earnings typically found in larger cities or industries with more complex financial needs.

In Vietnam, the salary for a bookkeeper typically ranges from about 8,000,000 to 15,000,000 VND per month. This range can vary depending on factors such as experience, the size and type of the company, and the region. In larger cities like Ho Chi Minh City and Hanoi, salaries may be on the higher end of this spectrum due to the higher cost of living and demand for skilled professionals.

How much is a bookkeeper's salary in the USA and Vietnam?

What is an accountant? What do they do?

An accountant is a professional responsible for managing, analyzing, and interpreting financial information for individuals, businesses, or organizations. Their primary role is to ensure the accuracy of financial records and to provide insights that support financial decision-making.

Accountants are responsible for managing financial records, preparing detailed financial statements, and assisting with budgeting and forecasting. They ensure accurate tax preparation and compliance, conduct audits to verify financial accuracy and analyze data to identify trends and issues. Additionally, accountants provide strategic financial advice and ensure adherence to regulatory standards, supporting informed decision-making and financial planning.

What is an accountant? What do they do?

What are the roles of both bookkeeper vs accountant?

1. Bookkeeper credentials

• Education: Typically requires a high school diploma or equivalent; some may have an associate's degree in accounting or finance.
• Certifications: Professional certifications, such as Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers (AIPB) or other similar credentials, can enhance credibility.
• Skills: Proficiency in bookkeeping software, strong attention to detail, and understanding of basic accounting principles.

2. Accountant credentials

• Education: Usually requires a bachelor’s degree in accounting, finance, or a related field; advanced positions may require a master’s degree.
• Certifications: Commonly holds certifications such as Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Chartered Accountant (CA), which require passing exams and meeting experience requirements.
• Skills: Advanced knowledge of accounting principles, financial analysis, and reporting; proficiency in accounting software and tools; and strong analytical and problem-solving abilities.

What does a bookkeeper do? What are the roles of both bookkeeper vs accountant?

What's the difference between a bookkeeper and an accountant?

Here are the essential differences between bookkeepers and accountants that you should understand before selecting a financial professional. Come along with Aniday.com as we explore these distinctions!

Feature	Bookkeeper	Accountant
Primary Role	Keeps track of and manages financial transactions, offering insights to assist in making business decisions.	Examines and interprets financial information, offering strategic guidance on financial matters.
Daily Tasks	Records sales, purchases, reconciles bank statements, prepares financial reports, analyzes financial data, participates in financial planning.	Receives and pays cash, creates receipts, payment vouchers, reconciles bank balances, safeguards cash, prepares daily cash reports.
Required Skills	In-depth understanding of accounting principles, financial data analysis, proficiency in accounting software, independence, strong communication skills.	Quick, accurate calculations, carefulness, honesty, systematic work, good communication skills.
Education	University degree in accounting, auditing, or related fields. May hold professional certifications like CPA, or ACCA.	Intermediate or college degree in accounting or finance. May hold certifications related to treasury operations.
Relationship with other departments	Works closely with all departments to collect financial information and provide financial advice.	Works closely with the accounting department to reconcile data, with the sales department to collect receivables, and with the purchasing department to pay invoices.
Goals	Ensures the accuracy and transparency of financial information, supports the company in achieving its business objectives.	Protects the company's assets, ensures the liquidity of capital, improves the efficiency of fund usage.
Complexity of work	Work requires a high level of analysis, evaluation, and synthesis of information.	Work is repetitive but requires a high degree of care and accuracy.
Level of risk	Higher risk due to involvement in making important financial decisions.	Lower risk, but errors in work can cause financial losses for the company.

 

What are the key differences between a bookkeeper and an accountant?

Note: While this table provides a general overview, the specific roles and responsibilities of bookkeepers and accountants can vary depending on the size and industry of the organization.

The function of bookkeeping, and how it fits into accounting

Bookkeeping serves as the foundational layer of the accounting process. It provides the detailed financial data necessary for accountants to perform their functions. Here’s how it fits into the broader accounting framework:

• Data collection: Bookkeeping involves gathering and recording financial data, which accountants use to prepare more comprehensive financial reports.
• Accuracy and organization: Bookkeepers ensure that financial records are accurate and well-organized, facilitating the accountant’s role in analyzing and interpreting this data.
• Preparation for analysis: The organized records maintained by bookkeepers enable accountants to create detailed financial statements, conduct audits, and perform financial analyses.
• Support for decision-making: While bookkeepers handle day-to-day transactions, accountants use the information provided to make strategic decisions, prepare budgets, and ensure regulatory compliance.

The role of bookkeeping and its place within the broader scope of accounting

Conclusion

Bookkeepers are crucial financial professionals who play an essential role in business operations. In this article, we have provided a comprehensive overview of accounting standards and “what does a bookkeeper do”. We hope this article will give you valuable insights and help you choose the suitable job you desire!