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What Does a Bookkeeper Do?

what does a bookkeeper do

If you run a service-based company, like a consulting firm, you might send out 2-3 invoices each month and make a handful of purchases on top of recurring spending, like payroll and rent. A part-time or remote bookkeeper could probably handle that work without breaking a sweat. U.S.C. § 7525—that does provide businesses and accounting clients with some level of confidentially, primarily with regard to data exchanged for tax preparation and filing purposes. Ultimately, the Bookkeeper’s responsibilities are to accurately record all day-to-day financial transactions of our company. A bookkeeper is skilled at keeping documents and tracks a wide net of financial information. As a liaison between departments, a bookkeeper interacts with department heads on a daily basis to discuss inventory needs. If merchandise, products or office supplies are running low, the bookkeeper must order more.

  • The responsibilities of a bookkeeper include a fair bit of data entry and receipt wrangling.
  • With the use of small business accounting software, they can extract data easily from physical documents through the use of optical character recognition or attach data using receipt scanning features.
  • Without a bookkeeper, small businesses often enter inaccurate and incomplete information into QuickBooks.
  • Sometimes this is a bit confusing because bookkeepers don’t necessarily do taxes because you have to have a special certification and special schooling in order to be a tax preparer.
  • Taxes and audits are inevitable over the course of business, and a bookkeeper plays a very important role in preparation of these inevitabilities.

Organizing financial processes, preparing financial statements, and presenting data for future uses, like budgeting or fundraising, are key responsibilities of a bookkeeper. When strategic analysis and forecasting become priorities, they may also serve as the foundation for a stronger finance team.

What is a bookkeeper?

In Quickbooks, you will find it through the “Accounting” tab on the left menu. Once in there, you will see quite a few pre-filled categories already, but you may need to customize them based on your client’s business needs. Becoming a bookkeeper bookkeeper is a great way to figure out whether or not you want to actually become an accountant or fund your accounting degree. And since new businesses are opening all the time there are always great opportunities for bookkeepers.

They also pay invoices, complete payroll, file tax returns and even maintain office supplies. The main responsibility is maintaining and updating financial records for a company.

Definition of Bookkeeper

Other programs charge annual or monthly fees and offer advanced features such as recurring invoices or purchase orders. While these services come at a cost, they can maximize the accuracy and efficiency of vital financial management processes. When interviewing for a CPA, look for an accountant who understands tax law and accounting software and has good communication skills. They should understand your industry and the unique needs and requirements of small businesses. When comparing accountants and bookkeepers, know that an accountant may also be a bookkeeper. Familiarizing yourself with what a bookkeeper does and what accounting clerks do can help you narrow down your financial needs.

  • He received his BA in journalism from the University of South Florida.
  • The TL;DR version is that bookkeepers give you a monthly snapshot of your business’s finances.
  • Another option is to run your own bookkeeping company where you work for several smaller clients.