Being a Bookkeeper
A Day in the Life of a Bookkeeper
It’s arguably the most important role in any business, or other kind of organisation, like a charity, that needs to keep a tight hold of finances and possibly also report to statutory authorities like the tax office. It is probably one of the, if not the, oldest profession in the world; for the history nerds our there (our chief writer is a history nerd, but don’t let her know I said this!) 7000 year old records from ancient Mesopotamia have been found which contain lists of expenditure, and lists of goods received and traded - basic bookkeeping at its best.
But history lessons aside, bookkeepers play a vital role in ensuring the financial health of businesses, and for a small business where every penny counts, this is especially important. A bookkeeper’s daily tasks involve managing financial records, processing transactions, and ensuring compliance with accounting regulations, a good deal of which is recording goods received and sold and lists of expenditure!
Today, we tracked a typical day in the life of our financial services manager, David, our main man in the field of bookkeeping, just to give you a glimpse into how we deliver our bookkeeping services to our clients:
Morning Routine:
Fire up the computer, make coffee while it boots up, and then settle to review the day's tasks and priorities. Adjust calendar as necessary depending on client queries or any urgent eventuality that has cropped up overnight.
Check and respond to emails from clients and colleagues, prioritising and scheduling time to respond to those that require investigation and detailed replies.
Review bank statements and reconcile accounts, gather information that will be needed throughout the day to minimise time spent searching for it later.
Join an online team meeting to review this quarter’s business goals and activities
Make another coffee
Then it’s time to move on to the tasks of the day. These could vary depending on whether the focus on that day is to ensure purchase invoices are processed and prepared for payments by the clients; or on analysing aged debtors to prepare for chasing slow paying customers; or on preparing for an annual return or audit. Today the focus was on managing debtors for a number of clients.
Processing transactions:
Enter details of income and expenditure transactions into the accounting system for each client for that day.
Ensure that all transactions are properly categorised and coded.
Reconcile bank accounts and credit card statements to identify and correct any discrepancies.
Financial Reporting and Analysis:
Prepare aged debtors lists to pass to the client.
Analyse the information and check to see what action has been taken on each debtor to date and what the client’s debt recovery policy specifies.
Check income to date against the client’s annual cash flow forecast and prepare to report to client.
Time for a break, possibly with something to eat, and definitely with a bit of movement, be that stretches in the office or a brisk walk round the block (highly recommended if not pouring with rain).
Then for the afternoon tasks:
Managing Accounts Receivable:
Follow up with customers on overdue accounts receivable (that’s chasing up slow or non-payments in layman’s terms). Send out emails and statements and, where an account is seriously in arrears and the customer not adhering to terms laid out by the client, prepare all information necessary to pursue through alternative recovery action (referral to debt collectors or the courts) all depending on the client’s recovery policies.
Communication and Client Service:
Communicate with clients to report on aged debtors as prepared earlier and arrange to discuss any particularly complex recovery cases.
Provide guidance and advice on accounting best practices and financial management.
Check emails received in response to payment past due reminder emails sent out earlier (we find that customers in debt generally respond quite quickly to reminders) and reply as necessary.
Even the best accountants and bookkeepers need to stay on top of their game and as the day came to a close, David turned to check his own personal development plan and booked in a local networking session for small businesses later in the month. Then came the end of day routine, a little late because David took two calls from his colleagues needing information and advice for their own portfolio of clients.
End of Day Wrap-Up:
Review the day's work to carry forward any tasks that need follow up later in the week / month so these do not slip.
Back up financial data.
A bookkeeper’s activities will be very varied from day to day and there will be occasions when there is a need to meet clients, auditors and team members, and to take breaks - at Athena, we know that movement breaks, and cutting off from work for at least half an hour for a relaxed lunch break, keeps us refreshed, energised and focused. This is vital, because a bookkeeper's day can be fast-paced and demanding, and at times it requires deep focus and concentration for a prolonged period. It is, nevertheless, also very rewarding. A bookkeeper’s role in ensuring the accuracy and integrity of the financial records is crucial in the long-term success of a business of any size.
If you find the bookkeeping needs of your small business challenging or you struggle to find the time to balance the doing of the business and the recording of the finances of the business, reach out and talk to us. Our bookkeeping services are tailored to each individual client and we are more than happy to organise an online, no-obligation discussion to help you talk through your needs. Investment in managing your money always pays off in the long run!
Keeping the business up to speed financially is just another day in the life of a bookkeeper