A full charge bookkeeper job description will usually include various duties related to the money and finances of businesses, and bookkeepers will often take charge of the general ledger of their business.
A full charge bookkeeper performs bookkeeping and accounting duties, usually for a small to medium business. This position performs many of the duties that accountants and controllers do for larger businesses. The words “full charge” mean that the employee takes responsibility for more than keeping ledgers. They also run trial balances, make journal entries, and prepare monthly or quarterly financial statements and tax returns. Working at a small company, this position may be in charge of every aspect of the company’s finances.
Definition of Small-to-Medium Businesses
What, exactly, is meant by the term “small-to-medium business?” According to the website “techopedia,” a small business is one with fewer than 99 employees, while a medium-sized business has fewer than 1,000. In the United States, the term is nebulous. Small businesses may include things such as dentist offices and clinics as well as hair salons and restaurants. Medium-sized businesses may include hotel chains or markets as well as manufacturers.
This is an important distinction, because the full charge bookkeeper job description indicates that this employee manages offices where he or she assumes duties of both a bookkeeper and an accountant and possibly supervises a small staff of clerks. In fact, the full charge bookkeeper may work for a business of some size. He or she may be an in-house employee or an employee of a business that provides outsourced bookkeeper services.
Full charge bookkeepers don’t need to have college degrees, but nearly all of them have some college coursework and additional education and training. Typically, full charge bookkeepers prepare a company’s records for review by a certified public accountant. They may be in charge of accounts receivable, payable and payroll and tax deposits. They may or may not supervise clerks or assistants, depending on the size of the business.
How Size Matters in Full Charge Bookkeeping
With the Internet and online business, even smaller companies are beginning to have global footprints. What this means to a full charge bookkeeper is that, while a college degree may not be necessary, he or she needs some experience or training in working with the financial re[porting requirements of other countries. For instance, companies that do business abroad must maintain two sets of books: one that complies with the regulations of the foreign country and one that satisfies requirements for American companies.
Key Responsibilities
The responsibilities of this position match the job title in some respects, as “full charge” bookkeepers take charge of a company’s complete financial processes. This means that they make journal entries, close and open books at the beginning and end of accounting periods, and issue financial statements to the owners and company management. They are expected to reconcile expenditures and revenues, and make any adjustments based on depreciation or amortization. Employees in this position can work in small offices or companies where they won’t have any other employees to supervise. They may also supervise small accounting or financial teams that can include clerks responsible for accounts payable or receivable, or payroll. They may supervise a clerk in preparing bank deposits, or in paying monthly bills.
Bookkeepers are invaluable to small businesses. According to the Navitance Blog, 82 percent of small businesses fail because of cash flow problems. Bookkeepers handle accounts receivable and accounts payable as part of their daily responsibilities to ensure that the company has an adequate revenue and emergency cash fund. According to the same article, 40 percent of small businesses incur federal tax penalties because of payroll errors. Payroll is another area where bookkeepers are important. In short, bookkeepers “keep the books” of all business transactions, making certain that figures match in all areas. Small businesses are subject to more fraud such as payroll schemes, alteration of checks and theft of inventory than larger companies. Accurate and comprehensive bookkeeping is imperative to discover and stop these types of fraud.
Additionally, these bookkeepers may be required to collaborate with accountants at times. For instance, depending upon the number of employees and the scope of operation, the preparation of tax forms and comprehensive monthly statements may require the skills of an accountant in addition to the knowledge and skills of the bookkeeper. That is almost certainly true if the company does business internationally.
Necessary Skills
Full charge bookkeepers need to understand and apply generally accepted accounting principles (GAAP), and be able to perform double-entry bookkeeping. They also need to understand charts of accounts, journal entries, and proper procedures for taking a trial balance. Nearly all bookkeepers working with this level of responsibility also need to have management training, and also be familiar with accounting software and how to prepare and present financial statements and tax returns.
Getting Started
With some employers requesting a college degree for full charge bookkeepers, you should keep in mind that opportunities for advancement or higher pay could require four years of college. You should be able to get started as a bookkeeper at the clerk and assistant level part-time, including while you may be attending college. The full-charge bookkeeper is not an entry-level position. Assistant bookkeeper, clerk, and office assistant are all entry-level positions that can lead to promotion to the lead or full charge bookkeeper in a variety of businesses. If you work in a larger business, you can gain experience as an accounting clerk or associate with responsibility for certain accounts or business processes, like payables or receivables. The experience can contribute to a more responsible position with a smaller company as a full charge bookkeeper.
Degree and Education Requirements
The job of a bookkeeper is different from the job of an accountant because accountants almost always have a bachelor’s degree. Certified Public Accountants (CPAs) also have additional training and have passed a licensing exam. Bookkeepers do not have to have a college degree. Employers are increasingly requesting that applicants for positions with responsibility should have at least some college, and many do prefer a college degree in business or accounting. A full charge bookkeeper who wants to work for a small to medium-sized business does not need to be a certified accountant. General business, accounting, and bookkeeping courses as well as management and software training will provide the required education and training.
Certification for Bookkeepers
While the full charge bookkeeper job description does not include a college degree as a requirement, these professionals can become certified and gain licensure through one of several bookkeeping associations. For instance, the National Association of Certified Public Bookkeepers is one accrediting organization recognized in the United States. To gain the credential Certified Public Bookkeeper ( CPB) applicants must verify their education ( an associate or bachelor’s degree, or education alternative in accounting is required), have one year or 2,000 hours of bookkeeping experience, agree to abide by a professional code of conduct and complete 24 hours of continuing education annually.
The education alternative consists of four courses that give the professional some accounting knowledge as well as ensuring specific bookkeeping skills. The courses include accounting fundamentals, accounting principles, payroll fundamentals and QuickBooks fundamentals.
Some colleges and training centers award certification after students finish the bookkeeping diploma programs.
Pros and Cons of Being a Full Charge Bookkeeper
Full charge bookkeepers have clear job responsibilities and regular work duties, making it a good position for people who like to have similar duties and a relatively quiet indoor work environment. The position changes and can have an opportunity to play an important role in a smaller or family-owned business. Some bookkeepers have opportunities for profit-sharing or working for organizations with a mission they share, like schools, religious organizations, or health clinics. On the negative side, small offices can have tight deadlines, and unexpected requests for financial reports or last-minute changes can cause a lot of stress. Unrealistic expectations and working with owners who may not understand financial projections are other commonly-heard job negatives.
Popular Industries for Full Charge Bookkeepers
Full charge bookkeepers may find employment in any industry where there is a need for accounting. Any business with at least a few employees may benefit from a bookkeeper, but popular industries where bookkeepers find employment include retail trade companies, as well as companies offering professional, scientific, and technical services.
Further jobs are available in wholesale trade companies, with healthcare and social assistance organizations, and with finance & insurance companies. Some bookkeepers may even find work with multiple firms and in multiple industries at the same time. Businesses with fewer than ten employees may only need part-time services from a bookkeeper, which may necessitate the bookkeeper working for multiple organizations.
Similar Jobs
Employment options that feature similar job responsibilities to bookkeepers include account collectors, auditors, budget analysts, and bill collectors. Bookkeepers may also find that jobs like cost estimators, financial clerks, purchasing agents, and loan officers have similar responsibilities.
Bookkeepers who eventually want to advance in their careers with higher wages than what is normally associated with the bookkeeping profession will want to consider occupations like those of accountant, auditor, loan officer, and purchasing agent since those professions offer high median pay that ranges from $63,000 to $71,000 per year.
A Day in the Life of a Full Charge Bookkeeper
Virtually every responsibility of a full charge bookkeeper will have something to do with basic mathematics, and modern bookkeepers will often perform the bulk of their duties throughout the day on a computer with various software programs like spreadsheets and databases.
A bookkeeper’s daily responsibilities may begin with entering figures into a software program and continue with the posting of financial transactions. The bookkeeper may receive and record checks and vouchers, as well as deal with cash.
Later in the day, the bookkeeper may produce a report like a balance sheet or create an income statement for the business. The bookkeeper may also examine company financial data to ensure accuracy of reporting and postings, as well as reconcile any issues they find.
Salary
According to the Bureau of Labor Statistics, bookkeeping, accounting, and auditing clerks average $41,230 in annual salary, or $19.82 an hour. A full charge bookkeeper is likely to earn more; these national averages include assistants and clerks with less experience.
According to further statistics from the BLS and its occupational employment statistics report for bookkeeping, accounting, and auditing clerks, the highest wages for these jobs reach an annual wage of $62,410.
The largest numbers of bookkeepers are employed in high population states like California, Texas, Florida, Illinois, and New York. The highest wages for bookkeepers are offered in the states of Washington, D.C., Alaska, Connecticut, California, and Massachusetts.
Bookkeepers who want to find quick employment and aren’t initially concerned with their starting wages may want to consider the cities of Miami, Houston, Chicago, and Dallas, which are all cited as locations by the BLS where there is the highest density of jobs available.
Future Outlook
The Bureau of Labor Statistics projects there will be a 4 percent decline, or close to 66,000 fewer jobs of this type between now and 2028. The BLS includes beginning and entry-level positions in the field, as well as full-charge bookkeepers. Most of the decline that is projected is anticipated to result from the consolidation of tasks performed by clerks. As one example, automated payroll software and payroll companies are reducing the need for payroll clerks. Another job area reduction is accounts receivable clerks, whose roles are being taken over by software that allows sales staff or managers to assume some of the job duties while a supervisor or administrator controls more of the process through technology. Small businesses are likely to continue to need bookkeepers who are responsible for the company’s finances.
If you enjoy working with numbers and are detail-oriented, full-charge bookkeeping could be a rewarding choice of career. Although the field of bookkeeping and company-based accounting is projected to decline, almost all of the decline is represented by entry-level clerk positions being reduced by automation and technology. Most owners are not experienced in double-entry bookkeeping and lack the time to learn the ins and outs of payroll taxes, deposits, and tax reporting. Bookkeepers who excel in these tasks will continue to be needed. As computer technology and accounting programming continue to advance and automate the bookkeeping process, the full charge bookkeeper job description will likely change, but the profession will always have a place in the offices of small and medium businesses.
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