What are some basic bookkeeping tasks?
Bookkeeping is the day-to-day process of recording, categorizing, and reconciling a business’s financial transactions. It’s the foundation for everything else in accounting, taxes, and business planning. Whether you’re managing the books yourself or outsourcing the work, it helps to understand the basic tasks involved.
Here are the core bookkeeping tasks every business needs to keep accurate and up-to-date books.
1. Recording Transactions
Bookkeepers start by logging all financial activity into the accounting system—usually QuickBooks, Xero, or similar software. This includes:
- Customer payments (income)
- Vendor payments (expenses)
- Bank transfers, deposits, or withdrawals
- Credit card transactions
Without this task, nothing else can happen accurately.
2. Categorizing Income and Expenses
Each transaction must be assigned to the right account in your chart of accounts. For example:
- Rent goes to “Office Rent”
- Software subscriptions go to “Technology”
- Customer deposits go to “Revenue” or “Unearned Income”
This helps generate accurate reports and prepare for taxes.
3. Reconciling Bank and Credit Card Statements
Every month, your bookkeeper compares your books to your actual bank and credit card statements. This ensures:
- No duplicate entries
- No missed transactions
- Accurate bank balances
- Fraudulent activity can be caught early
4. Managing Accounts Receivable
Accounts receivable (AR) is money owed to you by customers. Bookkeeping tasks include:
- Logging invoices sent
- Tracking outstanding payments
- Following up on unpaid balances
- Applying payments once received
Staying on top of AR helps you get paid faster.
5. Managing Accounts Payable
Accounts payable (AP) is money you owe to vendors. Bookkeepers help with:
- Logging vendor bills and due dates
- Categorizing expenses
- Scheduling or tracking payments
- Preventing late fees or duplicate payments
6. Maintaining the Chart of Accounts
The chart of accounts is your financial filing cabinet. A bookkeeper may need to:
- Add or remove accounts as your business evolves
- Merge duplicates
- Organize accounts to match your CPA’s reporting needs
7. Generating Monthly Reports
At the end of each period (usually monthly), bookkeepers generate standard reports such as:
- Profit and Loss Statement (P&L)
- Balance Sheet
- Cash Flow Statement
- AR & AP Aging Reports
These reports help you understand how your business is performing.
FAQs
Do all businesses need to do these tasks?
Yes—whether you’re a solo freelancer or a multi-location company, basic bookkeeping applies to all.
Can I automate any of these tasks?
Yes. Software like QuickBooks can import transactions automatically, but someone still needs to categorize, review, and reconcile them.
What’s the difference between bookkeeping and accounting?
Bookkeeping is about recording and organizing data. Accounting is about analyzing that data and making decisions based on it.
Do I need to do this weekly or monthly?
Many businesses do weekly transaction entry and monthly reconciliations. Frequency depends on volume and goals.
Is it better to outsource these tasks?
Yes, especially if you’re not trained or don’t have time. Errors in basic bookkeeping can cost you in taxes and missed cash flow signals.
Conclusion
Bookkeeping isn’t glamorous, but it’s essential. These core tasks keep your business organized, accurate, and ready for whatever comes next—whether it’s tax season, an audit, or expansion.
If you’re falling behind or just want expert support, outsourced bookkeeping is the most reliable path forward.
Remote Books Online handles every core bookkeeping task for you—from categorization to monthly reports—so you can focus on running your business.
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