On behalf of a company or organization, a ledger clerk is responsible for entering data into account ledgers. Many countries have laws that require business owners to keep detailed financial records of their income and expenses, which are reviewed and used during tax preparation and company audits. On a daily, weekly, or monthly basis, the ledger clerk must ensure that financial data is accurately recorded and the company’s books are balanced.
Many businesses keep separate ledgers for various expenses such as payroll and inventory. The ledger clerk may run all transactions through a general ledger before depositing or withdrawing funds from these accounts. Deposits are entered into the general ledger, debited from that account, and then redeposited into the appropriate sub-ledger. The clerk tracks these deposits and withdrawals using sub-ledger account numbers, but the general ledger account book contains all of the firm’s debits and credits.
The ledger’s ending balance should reflect the combined total of the day’s starting balance plus all credits and minus all debits at the end of each day. The clerk is usually required to balance the general ledger on a daily basis by the company. If any discrepancies are discovered, the ledger clerk must thoroughly examine all transactions and receipts in order to pinpoint the source of the issue. The clerk must correct the error and double-check that the final balance is correct. Clerks are not required to audit ledgers on a daily basis in some countries, but the more often ledgers are reviewed, the easier it is for clerks to detect and resolve problems.
Financial reports and presentations to company directors or owners are sometimes the responsibility of ledger clerks. They can refer to data in the ledgers to answer questions about the firm’s financial performance. When the tax authorities conduct audits, the ledger clerk is in charge of answering the auditor’s questions and providing copies of receipts and financial information as requested by the auditors.
As ledger clerks, some companies hire certified public accountants. These people typically have a bachelor’s degree in accounting, finance, or a related field and are certified accountants. Major corporations may hire a large number of clerks to oversee the finances of their various divisions. To work as ledger clerks, small businesses sometimes hire bookkeepers with no formal accounting training. These individuals may or may not have a college diploma, but they typically have worked as office administrators, secretaries, or treasurers in the past.