What Are My Responsibilities as an Internal Bookkeeper?

Recently, a client of ours hired a new internal bookkeeper. This new employee asked us during onboarding what they needed to do each day, as well as how and when they should be sending information over to us. Below, we have listed a few duties that will help streamline the process and prepare bookkeepers to submit the correct information to accountants each month.

Accounts Payable – We suggest paying bills either twice a month or once a week, depending on your volume of bills. Scan copies of each invoice or statement after the payment is issued and save them chronologically each year by vendor.

Accounts Receivable, Invoices, and Deposits – This should be done in a timely manner as it regulates cash flow. 

Gather and Organize Receipts – You’ll want to keep anything you can contribute to an audit trail, such as receipts and mileage. 

Properly Code Bank Statements and Credit Card Expenses – You can handle this through either a manual check or check writing through QuickBooks. Working with an accountant, you can make sure your chart of accounts is set up to properly categorize expenses.

Here’s an video on categorizing transactions in QuickBooks (https://youtu.be/ruP7dq6Yhsw). 

You can also browse QuickBooks’ online training tools, where their short videos will clarify how to handle these processes.

Payroll – Payroll is best handled by the accountant who is also doing your bookkeeping and taxes. However, if you choose to do it on your own, you’ll need to be aware of the payroll tax deposits, quarterly unemployment taxes, as well as the due dates and frequency of when those payments need to be made based on the payroll requirements. The size of your payroll can determine how often the payments need to be made to the IRS: semi–monthly, monthly, or quarterly. Additionally, there are end-of-year reports that must be handled. We would recommend outsourcing your payroll can be a smart decision – we recommend leaving it to the professionals. 

Bank and Credit Card Reconciliation – As an outside accounting firm, we handle bank reconciliation because we need to make sure all cash is accounted for and that it is recorded with the proper account code. 

Internal Control – Handling checks and balances is one of the most important duties and can be done by a trusted internal bookkeeper or the owner themselves. However, the person handling bill payments should not be the one doing the bank reconciliation for proper internal controls and check and balances. 

Timely Reporting to the Accountant

Your internal bookkeeper needs to send the accounting material to the accountant, ideally by the fifth of the following month. This ensures you will receive a financial statement within two to three weeks after the month is over. Remember, when you get your material in early, you’re more likely to get your monthly financial reports in sooner. First in, first out. 

Occasionally, bank and credit card statements will have different cutoff dates from each other. A good rule of thumb is the faster you can send the material over, the faster your financial statement gets produced.

Reasons for Monthly Reporting

Because bills are typically paid monthly, we should receive a financial statement that combines all the financial details of your company each month. If you receive a statement quarterly, you won’t know where you are financially for several months after the fact. It usually takes you longer to organize and they receive your information the second or third week in April. Then, the accountant must process three months instead of one, lengthening the process.

Receiving timely financial information to make smarter business decisions is ultimately the shared goal of an internal bookkeeper and outside accounting firm.

To learn more about how to integrate these tools, claim your free online course Operational Cash Flow System with coupon code ROCKNROLL! The course also includes a free excel template for a cash flow reporting checklist. 

Even better, schedule a complimentary strategy session to see how we can help you customize that checklist and streamline your cash flow reporting. Shining the light on your numbers and how you can increase sales, profits and cash flow.