During the past few years, the finance management sector has grown leaps and bounds. Paper-based accounting has largely been replaced by contemporary accounting technology—making the lives of bookkeepers and accountants significantly easier and stress-free.
From helping them maintain accurate financial records with less effort to facilitating real-time, data-driven decision-making, bookkeepers can leverage top-quality bookkeeping software to perform accounting tasks effectively.
Here’s looking at the roles and responsibilities of a bookkeeper and how a UK bookkeeping software helps them deliver maximum results.
What does a bookkeeper do?
- Maintaining financial books: Bookkeepers are expected to maintain accurate, up-to-date records of a business’s finances—from tracking expenses, invoices, tax records, to managing payroll information, and so on.
- Designing monthly reports: They are responsible for creating summarized reports highlighting a business’s financial position—which are extremely useful for business owners to forecast budgets and long-term goals. Plenty of bookkeepers have an actual hand in budget planning and business strategy building as well.
- Data sharing and collaboration: Bookkeepers frequently collaborate with other accountants and bookkeepers in the preparation of tax and year-end reports. To do so, they meet with fellow bookkeepers regularly to share miscellaneous financial records and ensure everyone is on the same page.
- Data entry: A great deal of an accountant’s job involves manually entering financial transactions, invoice data, etc to keep business books updated. It tends to eat away at their time, especially if a company is leveraging conventional computerized accounting systems to maintain records. They are also expected to create invoices and send them to clients as needed, and follow up on pending payments, if any.
- Bank reconciliation: To ensure accuracy, it is important for bookkeepers to cross-referencing recorded transactions with bank statements and other multiple sources.
- Payroll management: They are also expected to manually calculate the payment of employees, factor in deductions, reimbursements, and bonuses for effective payroll management.
- Tax filing: One of the main responsibilities of bookkeepers is ensuring business records are updated at all times for seamless tax filing.
- Strategy building: Creating budgets and forecasts, and advising on how to improve the business. Researching, reviewing and implementing software solutions and internal controls to streamline their business and enhance its performance.
What are the functions of a bookkeeper software?
In practice, bookkeepers typically perform all bookkeeping duties manually— recording business transactions on paper (journals and ledgers). However, in recent years, advancements in technology have made for highly-functional UK bookkeeping software which can carry out the majority of bookkeeping responsibilities with utmost precision and ease.
Here’s are the functions of a bookkeeper software:
- Customize invoicing: With a bookkeeper software to assist you in automatically creating invoices, all bookkeepers have to do is send them once the job is complete.
- Instant reporting: Quick report generation features in a UK bookkeeper software help create full-fledged, customized reports as and when needed. They don’t have to meet with fellow bookkeepers or share key data manually to access updated information on business finances.
- Inventory management: For eCommerce business owners, tracking inventory and staying on top of orders, returns, and refunds becomes significantly easier. A signal dashboard acts as a source of truth, giving insight into the stock levels, flow of goods and payments, and so on.
- Reconcile banking: Modern UK bookkeeping software can be integrated with bank accounts and third-party software to monitor financial transactions and ensure accuracy in records. This also helps them glean real-time insights on the cash flow which helps business owners forecast and predict budgets.
- Cloud-based access: Remote access enables bookkeepers and other authenticated users to access key business reports regardless of where they are and what device they are on. This makes collaboration significantly simpler and seamless.
- Automated payment alerts: Bookkeepers can schedule automated reminders to be sent to clients and customers if bills cross due dates. This eliminates the need to chase clients for payments.
- Receipt tracking: You can also schedule bill payments and store receipts electronically. All you have to do is capture a snapshot and upload to the cloud. Your receipts will get sorted based on the parameters you choose.
- Payroll management: With an advanced UK bookkeeping software, you can track your employees’ working hours, which can be used to calculate payroll and taxes for greater accuracy and uniformity
- Single dashboard: Anyone with access to the UK bookkeeping software can gain uninterrupted visibility into things like payments which are due, or bills that are to be paid. You can also track inventory records via the dashboard and gain quick insights.
- Real-time notifications: Advanced UK bookkeeping software also provides alerts on your mobile regarding overdue payments, accounts receivables, etc.
If you are looking for reliable bookkeeping software in UK to assist you with your bookkeeping responsibilities, Dext is a user-friendly, cloud-based, full-fledged accounting solution to help you derive maximum functionality.
Sign up for a trial with Dext today!