What Is Full-Charge Bookkeeping? Everything You Need to Know

Figuring out the basics of bookkeeping and finding a reliable bookkeeper is the nightmare of every small business owner just starting. However, as the business grows, so do the bookkeeping needs, which is why you should consider stepping up your bookkeeping game. Today we will explain what is full-charge bookkeeping and how you can benefit from it.

What Is Full Charge Bookkeeping?

Full-charge bookkeeping entails everything that regular bookkeeping does. However, that “full charge” part implies that something more is also included in the package. And it is because a full-charge bookkeeping service provides some extra services that typically fall under accounting.

Therefore, a full-charge bookkeeper can handle many different things concerning finances. It is in their job description to perform tasks that fall between basic bookkeeping and accounting. It is a two-in-one role that can be ideal for the needs of certain mid-size businesses and even larger ones, which have relatively simple accounting transactions and don’t need a controller.

What Does the Full Charge Bookkeeper Do?

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.

• Recording transactions,
• Managing accounts receivable and payable, 
• Monitoring the cash flow,
• Reconciling bank accounts,
• Creating journal entries,
• Issuing invoices,
• Payroll tax preparation, income tax, sales tax, tax return, etc.
• Preparing bank deposits,
• Make financial statements and regular financial reporting,
• Issue payments to employees,
• Maintaining an accurate general ledger,
• Supervising the accounting clerk and payroll clerks (if any).

What Is the Difference Between a Full Charge Bookkeeper and an Accountant?

You’re probably wondering now what the difference is between these two job titles and which one you should hire to take care of your financial records. Let’s go back to basics for a second. Bookkeeping is the process of tracking finances and keeping records. On the other hand, accounting stands for compiling and analyzing information about the account.

A full-charge bookkeeper is not a certified public accountant. Full-charge bookkeepers can help prepare financial statements and tax returns, which the employer submits to CPA for review or audit. Full-charge bookkeepers usually don’t provide advice on tax planning or try to act as financial advisors.

So the position of a full charge bookkeeper doesn’t cover all the duties of an accountant. Also, the formal education requirements are higher for an accountant, and they need to hold a bachelor’s degree in accounting or finances at least.

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

Two organizations offer certification for bookkeepers: the American Institute of Professional Bookkeepers (AIPB), which provides certified bookkeeper licenses, and the National Association of Certified Public Bookkeepers (NACPB), providing the certified bookkeeping professional license.

However, full-charge bookkeepers often don’t have any special certificate that gives them the title. Also, there are no official requirements, whether educational or professional, for this occupation. Most of the full-charge bookkeepers started as regular bookkeepers, gained experience, went through advanced accounting software training, and worked their way up the ladder. Since this role comes with higher responsibilities, it requires more experience in the field.

Benefits of Hiring a Full Charge Bookkeeper

This bookkeeper provides many services because they handle the complete cycle of accounting duties and supervise clerks, so it can be very convenient to have one on your team. Although it all depends on your business’s current needs and size, here are some of the main benefits of full-charge bookkeeping that you should keep in mind.

• It is cost-effective – considering that a full-charge bookkeeper covers two positions in one, it makes sense to go for it, especially if you run a mid-size business that doesn’t need a dedicated accountant.
• It is more practical – having one person dealing with your financial data can be more practical than coordinating at least two different people, a bookkeeper, and an accountant. 
• Your books will be on point – since you will be hiring someone who’s not a junior in this field, you can expect to get a person with years of experience and someone who can perform every single bookkeeping task perfectly, as well as more complex ones. Therefore, there won’t be any reason to worry when the tax season approaches or if you plan to take a bank loan.
• You can focus on growing your business – with an advanced bookkeeper by your side, taking care of all financial records, there is no need to worry about the books and data. You can focus on making the future bright.

When to Hire a Full Charge Bookkeeper?

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.

Therefore, as your business grows and its finances get more complex, switching to a full-charge bookkeeper should come naturally. That’s why this is the ideal option for mid to large-size growing companies that can afford to take this step.

Is Hiring a Full Charge Bookkeeper the Right Thing to Do?

It is essential to take bookkeeping seriously. Although it seemed like something anyone could do at the beginning, over time, it can get more complicated and even time-consuming. Since time is money, you can’t afford to waste it. You have to spend it wisely. That’s why investing in bookkeeping and accounting services is never a mistake, especially if you can get two in one, which is the case with full-charge bookkeepers. If you have any concerns, don’t hesitate to contact LessAccounting, the leading bookkeeping service provider.