What Does a Bookkeeper Do? A Guide

‘So, what exactly does a bookkeeper do?’ asked no one. No one, that is, with the likely exception of small business owners; they recognize – better than most – the need for proper financial management.

At minimum, accurate and up-to-date bookkeeping reveals whether their small business is turning a profit, and, ideally, it helps them make informed decisions about their business’s future.

Many small business owners, however, lack the training, the time, or even the inclination to keep their books in a timely manner. They soon realize the need for an expert to ensure their business’s success.

Okay, So, What Does a Bookkeeper Do?

In short, a bookkeeper records, manages, and analyzes the financial records of any organization, including small businesses.  They register and categorize transactions, confirm the accuracy of their work, and generate reports that summarize the organization’s financial well-being.

Small Business Bookkeeping Tasks

Bookkeepers – especially those employed by small businesses – typically perform the following day-to-day tasks:

• Keep a ledger. Bookkeepers manage the business’s general ledger, a complete and comprehensive record of its accounts and activities, which later provides the data for monthly, quarterly, annual, or cumulative financial reports, e.g., balance sheets.
  Most now use accounting software, like QuickBooks^® or Xero, for this purpose, as it’s often more efficient.
  
  
• Post debit and credits. Bookkeepers – via double-entry bookkeeping – ensure each financial transaction is registered and accounted for…down to the penny.
  
  
• Monitor for discrepancies. Above all, detail-oriented bookkeepers must keep an eye out for inaccurate financial activity and reporting.

Is a Bookkeeper an Accountant?

Bookkeepers and accountants share responsibility for monitoring a business’s financial health, but their roles are quite distinct.

A bookkeeper performs a more administrative role. They’re in the trenches every day: recording transactions, maintaining a cash receipts journal, preparing bank statements, etc. Accordingly, they often have an intimate understanding of a business’s financial operations. Consider them sous chefs to accountants; they gather and organize ingredients. 

An accountant functions more as an advisor. They review statements prepared by a bookkeeper and offer insights they deduce from those reports. Their training and experience provides owners with a better understanding of how their small business is performing…and why.

Do You Need Small Business Bookkeeping?

Sure, a determined business owner can act as their own bookkeeper. 

But life can and does get in the way. There are already so many other tasks vying for your attention, you needn't go it alone when it comes to organizing your business’s finances. 

You have an entire business to run and only so much time to accomplish it all.

What Does a Bookkeeper Do? Find Out with SmartBean^®!

With SmartBean^®, small business bookkeeping has never been faster, easier, or more fulfilling. Their team serves as a key resource for your small business, monitoring its financial well-being for you.

Owners can breathe a sigh of relief knowing their financial records are being managed accurately on a daily basis, so that you can focus on the important things, i.e., the ones that generate revenue.

So, don't let your business’s finances be an afterthought. Let them help you and your business thrive. 

At SmartBean^®, we’re more than just bean counters; we're the Beans you can count on!

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