Bookkeeper

AGENCY PROBLEMS.

It has long been recognized that the separation of ownership and control in the modern corporation results in potential conflicts between owners and mangers. In particular, the objectives of management may differ from those of the firm’s shareholders. We may think of managers as the agents of the owners. Agents are individuals authorized by another person (principal) to act I the latter’s behalf. According TO THE AGENCY THEORY the principals can assure themselves that the agents (management) will make optimal decisions only if appropriate incentives are given only if the agents are monitored.

What is the difference between a bookkeeper and an accountant? How do you determine what your organization needs in the way of financial management services? How do you select or staff those services? And how does the auditor fit into all of this? Do you need a CPA? The following information may help you answer these questions.

The bookkeeper’s function is to record all the financial transactions of the organization into journals and ledgers. These records constitute the books and should detail all of the business activities in a logical order (chronologically) for a certain period of time (monthly). It is from these books that the financial information is summarized into financial statements such as the balance sheet and the income statement. Many times accounting software facilitates the recording of transactions and the producing of financial statements.

Usually, the bookkeeper is responsible for disseminating the source documents that support each transaction: deposit slips, invoices, check requests, time sheets, etc. These documents are the basis from which entries are made in the records. The role of the bookkeeper may include writing checks, generating the payroll and reconciling the bank accounts. The degree to which these duties are handled by one person depends on the size of the organization and the appropriate level of internal controls. Generally, one person should not have sole responsibility for making deposits, signing checks and reconciling the bank statement.

In today’s job market, a bookkeeper’s qualifications usually include one to two years of college- level accounting coursework, although it is not unusual to find someone who has, through some years of clerical experience, learned the basic skills of bookkeeping on the job. When considering someone for the bookkeeping function, an employer should look for a candidate who understands debits and credits. These are fundamental concepts that underlie the proper treatment of transactions. And although these concepts are universal in the business world, an employer may want to look for someone who has knowledge or experience in a particular industry. This is not always necessary, considering that the bookkeeper position is often an entry - level position or supplemental to other clerical duties such as office management or secretarial.

Дата добавления: 2014-01-11