What financial reports can a bookkeeper prepare

 The core responsibility of a bookkeeper is to document and manage all financial transactions of a business. These financial transactions can include sales, purchases, credit card charges, invoices and wages.

Accurately documenting such information may provide business managers and owners with an understanding of their company's financial health, spending habits and expense budget of a business

The bookkeeper will record financial data into general ledgers, which are used to produce financial reports and statements. 

Keep reading to see what financial reports a bookkeeper can prepare for a business. 

Balance sheet

A balance sheet is a formal document that summarises the company's financial balances. The document will report on the company's assets, liabilities, equity capital and total debt, which provides a snapshot of the business's financial position.

Cash flow statement 

The name says it all!

A cash flow document keeps track of any cash inflows a company receives. The financial document also reports on outflows and can show how much cash was available during a certain period. 

Profit and loss statement

Also known as an income statement, a profit and loss statement summarises the activity from income and expenses during a particular period. This document will also show if the company had a profitable month or ran at a loss. 

Accounts receivable statement 

Accounts receivable involves invoicing customers and tracking the payment of those invoices. Bookkeepers will also need to follow up on any overdue payments. 

While accounts receivables are typically listed on the balance sheet as a current asset, the accounts receivable statement can document all invoices, payments and credits made during a specific period. 

Other roles a bookkeeper may carry out include:

• Data entry 

• Process payroll

• Bank reconciliation

• Perform stocktake

• Manage foreign currency accounts/deal with foreign currency transactions 

• Collect and remit sales tax to the government

Now that you know how a bookkeeper can help with certain operations, you may be interested in contacting a cloud-based accounting service.