Have you ever thought about becoming a bookkeeper? One of the advantages of having bookkeeping skills is you’ll always be in demand. Any business that has money involved needs a good bookkeeping system.
Most business owners and entrepreneurs don’t have the time to slave over their own books, or they don’t do as thorough of a job as they wish they had have done when tax time rolls around.
Having bookkeeping skills is also a great way to write your own ticket when it comes to part-time income or even starting your own bookkeeping business. If you’re fortunate, you can keep the books for your own bookkeeping business.
What Does a Bookkeeper Do? | A bookkeeper keeps the books, ledgers, or financial records of the business. This usually consists of labeling expenses and recording who paid who and how much. They keep records of receipts, and they track incoming payments and issue invoices.
Bookkeepers are also responsible for preparing the four key financial statements. This includes the profit and loss statement which shows revenue and expenses over the last quarter of last year.
They also keep the balance sheet, cash flow statement, and statement of changes in equity. It’s essential to have accurate records for the accountant during tax time or the bank when applying for a loan.
Skills a Bookkeeper Needs | A bookkeeper needs to have excellent attention to detail. They need to be able to do the math. They need to have computer skills and the more they know about Excel, the easier their life will be.
They need to be organized and not afraid to learn new skills and fill knowledge gaps when necessary. Also, they need to understand general bookkeeping principles, some tax principles, and have excellent communication skills.
Computer skills and data manipulation are also critical. A bookkeeper needs to be able to find their way around different software programs and make the most of automating some of the more tedious tasks.
Things Bookkeepers Need to Learn | There are quite a few things that a bookkeeper needs to learn. They need to understand the basics like assets, liabilities, and equity. They need to know how to balance the books. They need to understand how to record things in the right place and learn the accounting equation.
They also need to understand income statement basics such as revenue, expenses, and costs. The more knowledgeable a bookkeeper is, the easier the job will be. You can learn more about what it takes to master bookkeeping by looking over these online accredited bookkeeping courses.
Even if you don’t want to be a bookkeeper as your profession, understanding the basics can make you a more savvy business owner, and increase your chance of interview success when you’re looking for a bookkeeper for your business.
There are a lot of new software programs out there that make bookkeeping faster, easier, and more accurate than ever.