Mastering Full Charge Bookkeeping: A Comprehensive Guide for Beginner, Intermediate & Advanced Bookkeepers - Daddy Tv

When it comes to choosing your average bookkeeper versus a full charge bookkeeper, it primarily depends on the scope of the tasks you as a business owner wish them to perform. While regular bookkeepers record financial transactions, create reports, process payroll, and manage customer payments and invoices, a full charge bookkeeper’s tasks extend beyond this. They take on the additional role of accountant and usually have broader managerial responsibilities.

Due to the higher level of responsibilities that FC bookkeepers have, some employers insist that candidates have prior bookkeeping and accounting experience. Most companies prefer that full charge bookkeepers combine advanced education or certification with experience in the field. Advanced accounting software training and experience is also helpful for job seekers. Since they have more experience, they cost more than a regular bookkeeper, which few small businesses can afford right at the beginning. But at the same time, most business owners decide to invest in bookkeepers when their business grows and the number of financial transactions increases. A full-charge bookkeeper possesses a broader skill set and assumes more extensive responsibilities than an in-house.

B. Produce Financial Statements and Reports:

One of the primary obligations of a full-charge bookkeeper is to supply accurate and timely financial statements and reviews. Those include the balance sheet, income statement, and cash flow statement. Full-charge bookkeepers generate those reports and examine the financial data to offer valuable insights into the organization’s financial health.

They are often engaged by growing businesses that cannot handle all the financial tasks on their own. These full service bookkeeping duties could include data entry of accounts payable invoices and preparing bank deposits. The role of a full charge bookkeeper in a small business is more complex than that of a regular bookkeeper and carries more responsibility. A full charge bookkeeper handles all of the accounting needs of a company, including the preparation of financial statements.

Full Charge Bookkeeper vs. In-House Bookkeeper

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Full charge bookkeepers are responsible for full-cycle accounting, which requires an ability to juggle several organizational tasks at once. Their responsibilities include managing all aspects of general ledger, accounts receivable, and accounts payable, as well as handling payroll information, credit card statements, and cash flow. Financial statements and tax preparation are a major responsibility for a full-charge bookkeeper. The balance sheet, income statement, and cash flow statement are typically prepared in conjunction with the month-end closing. Since they are managing the accounting department, the numbers are easily translated to taxes. Estimated quarterly taxes are filed and paid, and annual returns are prepared for the company.

What Is the Difference Between a Ful-Charge Bookkeeper and a Regular Bookkeeper?

While both play crucial roles in financial management, there’s a distinct difference between a full-charge bookkeeper and a Certified Public Accountant (CPA). CPAs hold higher accounting expertise and are authorized to perform specialized tasks like audits, tax planning, and consulting. Even though they are not as well-paid as accountants, full charge bookkeepers definitely earn more than regular bookkeepers. Depending on the level of education, years of experience, certifications, and additional skills, the full charge bookkeeping salary in the United States ranges from $37,770 to $47,250.

• They should also prepare financial statements, maintain the ledger, and perform all the other bookkeeping services.
• The role of a full charge bookkeeper in a small business is more complex than that of a regular bookkeeper and carries more responsibility.
• With a full charge bookkeeper at the helm, a business experiences increased efficiency in managing its finances.
• Full charge bookkeeper duties include preparing the balance sheet and income statement at the end of the month.
• Knowing what is included in full charge bookkeeping services makes you aware that a degree, skills, and certifications sometimes aren’t enough.
• Full-charge bookkeeping is an all-encompassing financial management approach that involves meticulously recording, organizing, and reporting an organization’s financial transactions.
• Full charge bookkeepers perform all the tasks regular bookkeepers do, along with full-cycle accounting duties, except for those that can be done only by a certified public accountant.

As mentioned, everything done by professional bookkeepers is included, plus some extras. So let’s see what the basic duties of a full charge bookkeeper are, so you can have a better idea if that is what your business needs are. A full charge bookkeeper is someone who will manage all the financial accounts of a business.

And it is because a full-charge bookkeeping service provides some extra services that typically fall under accounting. As conduits of financial information, these adept professionals serve as a bridge between raw data and informed decisions. Also, unlike accountants, full charge bookkeepers generally do not provide tax planning advice or act as financial advisors.