Reasons You Need a Full Fee Bookkeeper
As your business grows, your bookkeepers will encounter new challenges and requirements. You need someone who can take extra responsibility for all your accounting needs. This guide covers the main reasons why a full-fee bookkeeper can help your business. Learn all about the position and its responsibilities, qualifications, and salary expectations. You’ll also learn what your alternatives are and how to recruit for the position.
What is a full-fee bookkeeper?
A fully responsible bookkeeper covers the tasks of a regular bookkeeper but performs additional, more complex duties. The “full charge” element means they take full responsibility for the company’s finances. As mentioned above, this includes preparing monthly statements, balance ledgers and tax returns for inspection by your CPA. Full-time bookkeepers are experienced and require slightly higher salaries than standard bookkeepers. They are usually employed by smaller companies that do not require the expertise of a CFO or CPA.
Fully charged bookkeeper
- Make adjustments to the general ledger
A Full Charge Bookkeeper monitor the general ledger much more than regular bookkeepers. The main difference is that you prepare and enter journals for fixed assets and depreciation. The full-charge bookkeeper also runs a monthly trial balance to ensure that your general ledger balances are balanced. During this process, adjust the journal entries to correct any discrepancies found.
- Process banking
Rest assured that all bank accounts are covered. FCB helps you adjust your monthly bank statements. They oversee all bank deposits, petty cash accounts, credit card accounts, and credit lines. Your discretionary bookkeeper can also help you maintain your cash position by managing invoice factoring and accounts payable.
- Prepare your tax return
While discretionary bookkeepers are not certified public accountants, they can help prepare monthly and quarterly taxes. Their returns are submitted to your CPA for review to obtain tax advice and process tax returns. Reducing the time your CPA needs to spend on taxes should translate into significant cost savings.
- Preparation of financial statements and reports
They can generate all general financial statements, but can also help with budgeting and forecasting reports. Financial planning and budget forecasting will help improve your profitability – creating opportunities for growth.
- Process payroll and timesheets
A full-time bookkeeper is usually responsible for processing payroll. They can handle tasks on their own or supervise payroll specialists. If you outsource payroll, your FCB can help manage the relationship.
- Supervise junior accounting staff
A fully responsible bookkeeper will supervise junior staff, develop efficient work processes, and verify that their work is accurate and completed on time. The entry-level accounting roles they typically oversee include payroll clerks, accounts payable clerks, or billing clerks. In smaller companies, they may also oversee inventory, purchasing, and human resources.
Qualification and salary of the whole bookkeeper
There are no formal qualifications or requirements to be a full-time bookkeeper. You may find that many applicants Tax Shelter for entering in the accounting field as junior/assistant bookkeepers and work their way up the profession.
Most full-time bookkeepers have a college education. This role obviously requires a good understanding of mathematics and business software. When vetting candidates, you may think long-term experience is sufficient.
A fully responsible bookkeeper is expected to understand and apply generally accepted accounting principles (GAAP), double-entry bookkeeping, and be able to read the chart of accounts. They should also be able to make journal entries and do trial balances.
Candidates should have at least an intermediate level of knowledge of the accounting software used by your business. In addition to their accounting knowledge, they need the ability to prioritize workloads, communicate effectively, and meet deadlines.
A full-time bookkeeper is a key job position for your business. When recruiting for the position, conduct an in-depth examination of the character and abilities of all potential candidates. Ask questions that probe their knowledge. Prompt them to demonstrate solid financial knowledge that will benefit your business.
Role and Responsibility Question
What are the main duties of a fulltime bookkeeper? This question can enlighten you about the candidate’s previous experience. Although they see themselves as a fully responsible bookkeeper, your understanding of the role may differ from theirs—perhaps in one key area.
What skills does an effective full-responsibility bookkeeper need? This question tests the candidate’s knowledge of standard accounting practices. Good candidates should also highlight non-financial core skills such as teamwork and task management.
The candidates think about challenging situations they have faced before. Asking candidates to explain how they deal with difficulties helps clarify their character.
What problems have you encountered in previous roles and how did you solve them? This question forces candidates to explain in detail their approach to any issues that arise in the business accounts. A good candidate should be able to choose from a variety of situations they have previously handled in a competent and ethical manner.