The main point for the business owners or accounting firms is how to select the proper bookkeeper that they can rely on. Here are some of the points with which we can check and confirm the skills of the bookkeeper:
Maintain an accurate record of financial transactions
The easiest way to keep and maintain your businesses financial records is through the use of good accounting software with a bookkeeper. So, we need to check the knowledge of the bookkeeper in general and his knowledge of the accounting software.
Update and maintain the general ledger
The bookkeeper should be able to provide the information as and when required in the form of its requirements. He should be able to pull out the ledger anytime as per requirement of the business owner.
Reconciliation of entries into the accounting system
The bookkeeper should be able to process the reconciliation in real time in the accounting software which reveals the picture of the business in status quo to the business owner.
Recording of debits and credits
The bookkeeper should know all principles of accounting and need to be assessed on his/her knowledge of what needs to be debited and what needs to be credited.
Each accounting software comes with a dashboard. The bookkeeper should create the dashboard based on the individual business requirements. That will depict the overview to the business owner in a quick and brief manner.
Understanding accounting best practices
Basic accounting practices also require that financial representatives track the way money flows into a business. Money can either come in or come out. Typically, a business will track money coming into the business through the sale of products and services or by the proceeds generated from loans or investments.
Knowledge of IFRS, U.S GAAP, or another accounting framework
The GAAP methodology is the main accounting framework used in the US while the IFRS is the accounting framework that is majorly accepted internationally. The two frameworks have been tailored to allow the provision of fair accounting grounds to the users. However, there are major differences that can be seen from the two frameworks. The bookkeeper should be able to perform his duties as per the requirement of the business.
Data entry skills
Entering transactions in the accounting software requires strong data entry skills. So, a bookkeeper should be able to perform the same.
High attention to detail
It is observed that many of the employees are not paying attention to details. So, while selecting a bookkeeper we should assess these skills - at times, if any question or query emerges, he/she should be able to reach the bottom of the issue, solve the same, and report the solution to the business owner.
Proficiency in Microsoft Excel
Proficiency in Microsoft Office typically means you are able to use MS Word to edit text documents, create templates, and automate the creation of the tables of content. Proficiency in Excel means being able to run and create functions, pivot tables, and charts. Plus, you can create slideshows in PowerPoint.
Produce work with a high level of accuracy
This is the role of numbers: so, any small mistake will accumulate into a big number someday. So, a bookkeeper should be very accurate in his/her work. Also, the management will be taking decisions based on the books. Inaccurate bookkeeping will harm the business.
Professionalism and organization skills
Organizational skills are all about being able to prioritize tasks, maximize efficiency, and maintain structure throughout a workday.
Maintain the trial balance, by a reconciliation of general ledgers
The bookkeeper should have an accounting software which will produce accurate trial balance by a reconciliation of the general ledger. So, here the accounting software that is used is also playing an important role.
Monitor any variances from the projected budget
A budget variance is the difference between the amount budgeted for revenue and expenses and the actual amount received or expended. Budget variances can be favorable (more revenue) or unfavorable (higher costs). Some variances are expected for any prepared budget, and the variances themselves can be favorable or unfavorable, depending on the variance itself and the budget category it’s in.
IBTA provides a complete package for bookkeepers including a bookkeeping software that drives and helps the business to grow. Their experts are able to help the subscribers in real time and create seamless and smooth transactions and knowledge transfer..
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Information references: How to Monitor and Analyze Budget Variances | The Blueprint. https://www.fool.com/the-blueprint/budget-variance/Basic Accounting Practices for Small Business | Your Business. https://yourbusiness.azcentral.com/basic-accounting-practices-small-business-17712.html
Differences between IFRS and US GAAP | Difference Between. http://www.differencebetween.net/business/finance-business-2/differences-between-ifrs-and-us-gaap/
How to List Microsoft Office Skills on a Resume in 2022 - zety. https://zety.com/blog/microsoft-office-skills
The Most Important Organizational Skills (With Examples). https://www.zippia.com/advice/organizational-skills/