BOOKKEEPING
What is full-charge bookkeeping?
Full-charge bookkeeping is a comprehensive set of services that ensures accurate financial records of a business. It includes recording transactions, reconciling accounts, and preparing financial statements. A full-charge bookkeeper is responsible for managing all financial records of a company. They are usually well-versed in accounting principles and software.
A full-charge bookkeeper oversees all accounting and bookkeeping tasks of a business, mainly small or medium-sized ones. They maintain the business ledger, handle complex transactions, prepare financial statements and tax returns, and process timesheets and payroll. However, in larger organizations, some of these tasks are typically performed by accountants or controllers.
Full-charge bookkeepers have a higher level of responsibility and are accountable to upper management, such as the business owner or president. They may work with external experts, like certified public accountants (CPA), and supervise a team of accounting clerks.
What does a full-charge bookkeeper do?
A full-charge bookkeeper working in a small to mid-sized organization takes on the responsibilities of both a regular bookkeeper and an accountant or controller. Some of the typical duties associated with this role include:
- Managing accounts payable and accounts receivable
- Reconciling cash, bank accounts, and revenues
- Maintaining an accurate general ledger, making adjustments as needed
- Creating journal entries for all accounts, including fixed assets
- Monitoring the business’ cash flow
- Issuing invoices to and collecting payments from customers
- Preparing tax returns and monthly and quarterly financial statements
- Remitting payroll, income, sales and use taxes
- Processing employees’ timesheets and managing payroll
- Supervising accounting staff, such as payroll clerks, billing clerks, or payables clerks
- Collecting information for auditing purposes
What is the average salary for a full-charge bookkeeper?
The average hourly salary for a full-charge bookkeeper across the country is $20.57, with some salaries ranging from $15.04 to $30.27 per hour. The salary of a full-charge bookkeeper can vary based on their experience, location, and place of employment. Independent bookkeepers can determine their fees based on industry standards and the nature of the tasks they perform.
Full charge bookkeeper vs. in-house bookkeeper
Full-charge bookkeepers and in-house bookkeepers perform similar roles but also have significant differences. You can use the following categories as examples of how these two professions compare:
Definition
An in-house bookkeeper represents an internal employee who performs bookkeeping activities for an organization rather than an outsourced hire. As regular bookkeepers, they perform basic bookkeeping activities. They typically do not have managerial responsibilities and may work within an organization’s accounting team.
A full-charge bookkeeper gains full responsibility for the organization’s accounting tasks. This title represents a more advanced role than a regular in-house bookkeeper due to its additional responsibilities. Businesses can hire full-charge bookkeepers as full-time employees or outsource them. In some cases, a business may provide training resources to its existing in-house bookkeepers to enable them to take on full-charge bookkeeping responsibilities.
Responsibilities
A regular in-house bookkeeper records a company’s incoming and outgoing financial transactions. Their typical tasks may include creating financial reports, processing payroll, and managing customer or client invoices.
A full-charge bookkeeper also performs these tasks, along with activities typically conducted by accountants or controllers for larger organizations. For example, they can prepare and analyze financial statements to create reports. They may also have more management responsibilities, such as supervising a team of staff members or working directly with upper management or a company’s board of directors.
Requirements
The minimum requirement for becoming a regular bookkeeper is a high school diploma or equivalent. Some employers may hire candidates with no bookkeeping experience and provide them with on-the-job training to understand the role’s responsibilities. This training may include learning about the business’s preferred bookkeeping practices and procedures and how to use specific bookkeeping software.
Some employees will hire full-charge bookkeepers who have similar qualifications. However, they often prefer that candidates for this role have at least an associate or bachelor’s degree in a relevant field. Due to the higher level of responsibility associated with full-charge bookkeeping, employers appreciate that these candidates may have more years of experience or in-depth finance and accounting knowledge. Bookkeepers in both full charge and regular roles can also obtain certification to demonstrate their professional knowledge and skills.