A bookkeeper records financial transactions from a variety of sources. This may include writing down information from a computer system or manually entering data into a record book.
The bookkeeper must make sure that the transactions are categorized correctly in order to ensure an accurate representation of current and past balances, income, expenses and cash flow.
A bookkeeper may be responsible for adjusting accounting records to make sure that entries are accurate and complete, or researching information about transactions if questions arise.
The lack of accuracy in the books can result in potential penalties from tax authorities. This responsibility is often shared with an accountant, who specializes in tax preparation and financial advising services.
A bookkeeper updates financial records to reflect changes in bills or purchases. For example, if an invoice is paid online the record of the transaction must be updated to show that the purchase was made and payment received.
This task can sometimes occur on a daily basis if enough transactions are encountered by the bookkeeper, but may only need to happen weekly or monthly depending on the circumstances.
A bookkeeper collects information on potential tax savings for a business, which is then passed along to an accountant who specializes in tax preparation services.
A bookkeeper charges a fee or commission based on the amount of work he or she completes, usually calculated as a percentage of total expenses recorded.
If a bill is received but not recorded on the books, it may be inaccessible for future reference and long gone by the time a bookkeeper records it as paid.