Bookkeeping Duties and Principals Explained by Chris Gilmour

A lot of people will more than likely think that bookkeeping and accounting is the same thing. Bookkeeping can be seen to really be one function of accounting, however accounting is considered to include many of the functions involved with managing financial matters of a business, company or corporation. Also different is the fact that accountants will prepare reports which are based, in part, on the day to day work of Bookkeepers.

Bookkeepers can execute all types of record-keeping responsibilities. These can include, and are not limited to:

1. The preparation of what is referred to as "Source Documents" for every operation of a business. This includes the buying, the selling, the transferring, the paying and the collecting. Documents included in this preparation can include records such as various purchase orders, the invoices received and issued, payments to be made from credit card, and employee time sheets and expense reports. Bookkeepers can also resolve and complete in the source documents with transactions and other business events. These can include items such as the payment of employees, the general sales, any borrowing of money or the buying of products or raw materials for to assist with the production or end product.

2. Bookkeepers can also enter the Financial Effects into journals and accounts. This is pretty much referred to as entering financial information. The journal will be the record of all the transactions appearing and recorded in chronological order., whereas the Accounts will be a separate record, or just a page for each and every asset and each and every liability. Be aware that one transaction can often affect several accounts.

3. Another role is that Bookkeepers can prepare and write reports after the completion of a specific period of time. This can be daily, weekly, monthly, quarterly or annually reports or statements. To achieve this, every one of the accounts will need be up to date and correct and inventory records will have to be updated. The reports will be required to be checked and often double-checked to make sure that they are error-free.

4. Bookkeepers can also collect complete listings of every account. It can be referred to as is the "Adjusted Trial Balance". For example, a small business has a hundred accounts or so, a very large business might have more than 10,000 accounts.

5. Finally, a Bookkeeper can "close the books". This happens when a bookkeeper bookkeeping brings the reports for a fiscal year to a close and often summarises the reports and statements, then "closes" by not allowing further transactions to take place. Often this occurs at the end of financial year.

About the Author

Chris has several home business websites that promote valid working from home opportunities. He writes articles about finance, the ways to spot a home work scam, treating head louse and nits by using a home remedy for head lice and Italian lifestyle and culture including the various ways to learn italian.