What Does a Bookkeeper Do?
Discover the key tasks bookkeepers handle and why every small business needs one to stay financially healthy.
If you’re running a small business, bookkeeping probably isn’t your favorite task—but it’s essential. A bookkeeper helps you stay on top of your finances, track cash flow, and prepare for tax season. But what exactly does a bookkeeper do, and how is it different from accounting?
The Role of a Bookkeeper
A bookkeeper handles the daily financial recordkeeping for your business. They track money in and out, categorize expenses, reconcile bank accounts, and prepare the monthly reports your accountant or CPA needs.
What Bookkeepers Typically Do
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Record financial transactions - Categorize income and expenses
- Reconcile bank and credit card statements
- Maintain accurate general ledgers
- Track accounts receivable and payable
- Prepare monthly financial reports (P&L, balance sheet)
- Keep your books tax-ready year-round
Try RemoteBooksOnline Free for 30 Days
We assign a dedicated bookkeeper to your account. Get clean, reconciled, CPA-reviewed books—at no cost for your first month.
What Bookkeepers Don’t Do
- File business taxes (usually handled by a CPA or accountant)
- Offer legal or strategic financial advice
- Perform audits or valuation services
- Represent your business before the IRS
How Bookkeeping Helps Your Business
- Know exactly where your money is going
- Avoid tax penalties from missing or messy records
- Get financial statements you can trust
- Make informed decisions based on up-to-date data
- Save time, reduce stress, and focus on growth
What Software Do Bookkeepers Use?
Professional bookkeepers use platforms like
- QuickBooks Online
- Xero
- Wave
- FreshBooks
- NetSuite (for larger businesses)
Try RemoteBooksOnline Free for 30 Days
We assign a dedicated bookkeeper to your account. Get clean, reconciled, CPA-reviewed books—at no cost for your first month.
Do You Need a Bookkeeper?
If you’re spending more than 3–5 hours a week on spreadsheets, invoicing, or cleaning up past transactions—it’s time. Hiring a bookkeeper helps you stay organized, save time, and focus on running your business.
Frequently Asked Questions
What’s the difference between a bookkeeper and an accountant?
Bookkeepers track and organize financial data. Accountants interpret that data, offer strategic advice, and file taxes.
Is bookkeeping required for small businesses?
Yes. Even if you’re a sole proprietor, you need organized financial records to file taxes and manage your business.
Do I need bookkeeping software?
No. If you work with RemoteBooksOnline, we include QuickBooks or Xero with your plan—fully managed for you.
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