There are many different bookkeeping tasks that a bookkeeper carries out throughout each period.
These tasks range from entering journal entries, managing and reconciling bank accounts, recording payroll, and much more.
The most essential bookkeeping task is following the accounting cycle.
The accounting cycle starts with the journalizing of financial transactions. The bookkeeper does this by entering transactions in a journal.
For example, suppose a business purchases office supplies for $100.
The bookkeeper debits the office supplies expense account for $100 and credits the cash account for $100. This initial transaction is entered in the general journal.
Next, the bookkeeper posts these amounts in the general ledger. The general ledger provides an overview of all the activity within each account.
At the end of the month, the bookkeeper checks to ensure the books match up with all bank accounts. Then all the accounts in the general ledger are organized on the trial balance, where the books are then checked for any balancing issues.
Lastly, the bookkeeper reviews the period and makes any adjustments needed. Then, if all is well, the financial statements are compiled manually or generated using bookkeeping software.