What does a bookkeeper do?

Author: Russell Smith

June 26, 2015

In summary, this is what the bookkeeper does:

Step 1 – Invoices

• Raise the sales invoices
• Record the sales invoices in the accounts (both the sale and the debt owed FROM the customer)
• Give the purchase invoice / expense receipt a reference number
• Record the purchase invoices in the accounts (both the expenditure and the debt owed TO the supplier)

Step 2 – Payments and receipts

• Record the customer receipt (both the bank receipt and the clearing of the customer debt)
• Record the suppler payment (both the bank payment and the payment if the supplier debt)

Step 3 – Reconcile the bank to the accounts

• Go through all the bank receipts and bank payments in the account and tick this off against the bank account (this is called the bank reconciliation)

Step 4 – Review list of customers and suppliers

• Go through the list of customers who owe money to ensure they are correct
• Go through the list of suppliers who you owe money to ensure they are correct

Step 5 – Review your profit and loss account and balance sheet for any errors

Step 6 – (If VAT registered) complete the VAT returns