A bookkeeper records and organizes your business’s financial transactions so your records are accurate and current. Daily and monthly duties include categorizing income and expenses, reconciling bank and credit card accounts, tracking invoices and bills, preparing financial reports, and keeping records ready for tax filing. A bookkeeper doesn’t usually give tax strategy or sign off on financial statements. That’s the role of an accountant or CPA.
What Are a Bookkeeper’s Main Duties?
- Recording transactions: logging every sale, expense, and transfer
- Categorizing: placing each transaction in the right account, as covered in our guide to how to categorize business expenses
- Reconciling accounts: matching your books to bank and card statements
- Managing invoices and bills: tracking what customers owe you and what you owe vendors
- Running payroll support: recording wages, withholdings, and payroll tax payments
- Tracking contractors: keeping payment totals and W-9s for 1099 reporting
- Preparing reports: profit and loss, balance sheet, and cash flow statements
- Keeping tax-ready records: so filing is faster and more accurate
What Does a Bookkeeper Not Do?
A bookkeeper generally doesn’t prepare complex tax returns, provide audited financial statements, or represent you before the IRS. Those tasks belong to a tax preparer, accountant, or CPA. Many firms offer both, so you can keep everything in one place. Our comparison of a bookkeeper vs accountant vs CPA explains the differences.
Does a Bookkeeper Need a License in Florida?
Bookkeeping generally isn’t a state-licensed profession, so check experience, software training such as QuickBooks ProAdvisor certification, and references. Our guide on how to choose a bookkeeper lists 12 questions to ask.
How Much Does a Bookkeeper Cost?
Most small businesses pay a flat monthly fee based on transaction volume and services included. Hiring in-house costs more once salary, taxes, and benefits are added. See our outsourced bookkeeping cost comparison for a full breakdown.
When Should You Hire a Bookkeeper?
Consider hiring one if you:
- Don’t know your profit for last month
- Spend hours each week on reconciliation
- Have missed or nearly missed a filing deadline
- Are months behind and need a catch-up
- Plan to grow and need reliable reports
Our guide to the signs you need a professional bookkeeper covers these in more depth. Hiring before year-end helps, since your books can be cleaned up before tax season. Our QuickBooks clean up and catch up services handle backlogs first.
Frequently Asked Questions
What does a bookkeeper do on a daily basis? They record and categorize transactions, track invoices and bills, and flag items that need your attention.
Is a bookkeeper the same as an accountant? No. A bookkeeper maintains records. An accountant analyzes them and advises on taxes and strategy.
Can a bookkeeper do payroll? Many can record payroll or manage it, depending on the firm. Ask what’s included.
Can a bookkeeper file my taxes? Some firms offer both services. Confirm the preparer has the right credentials and a PTIN.
Need a Bookkeeper in Central Florida?
Our monthly bookkeeping services handle reconciliation, categorization, and reports for Sanford businesses. Book a free consultation or visit our homepage.
