What’s a ledger clerk?

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A ledger clerk is responsible for entering information into account ledgers on behalf of a company or organization. Laws in many countries require business owners to keep detailed financial records of income and expenses and these records are reviewed and used during tax preparation and company audits. The clerk must ensure that financial information is accurately recorded and that the company’s books are balanced on a daily, weekly or monthly basis.

Many companies keep separate records for different types of expenses, such as payroll or inventory. Before funds are deposited or withdrawn from these accounts, the ledger clerk may first pass all transactions through a general ledger. Deposits are recorded in the general ledger and then debited from that account and repositioned in the appropriate sub-ledger. The employee uses the ledger account numbers to track these deposits and withdrawals, but the ledger account book contains details of all the company’s debits and credits.

At the end of each day, the ending ledger balance should reflect the combined total of the day’s opening balance, plus all credits and minus all debits. Typically, companies require the employee to balance the general ledger on a daily basis. If any discrepancies are found, the ledger clerk should carefully review all transactions and receipts to identify the source of the problem. The clerk must correct the error and ensure the final balance is accurate. In some nations, employees are not required to audit the books on a daily basis, but the more frequently the books are reviewed, the more easily employees can detect and resolve problems.

Sometimes ledger employees are responsible for preparing financial reports and making presentations to company directors or owners. They can answer questions about the company’s financial performance by consulting the data contained in the books. When tax authorities conduct audits, the accounting clerk is responsible for answering the auditor’s questions and providing copies of receipts and financial information requested by the auditors.

Some companies hire certified public accountants to work as clerks. These individuals usually have a college degree in accounting, finance or a related field and are licensed to work as accountants. Large companies may employ large numbers of employees to oversee the finances of many different divisions of the company. Small businesses sometimes hire bookkeepers who don’t have formal accounting training to work as clerks. These individuals may or may not have a college degree, but they usually have some experience as office administrators, secretaries or treasurers.

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