What Does a Bookkeeper Do? Duties & More | QuickBooks (2024)

FAQs

What Does a Bookkeeper Do? Duties & More | QuickBooks? ›

Use bookkeeping software, spreadsheets, and other databases to post up-to-date financial transactions. Generate financial reports, such as balance sheets and income statements. Maintain and monitor financial records for accuracy. Reconcile or report any discrepancies in financial reports.

Bookkeepers oversee a company's financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, and daily financial entries and reconciliations. They perform daily accounting tasks such as monthly financial reporting, general ledger entries, and record payments and adjustments.

Bookkeepers record financial transactions whereas accountants analyse it. Bookkeeping is a subset of accounting. Bookkeepers help you with collecting the data regarding your business. Accountants analyse the data and turn them into relevant information for your business.

Each day in a business, cash flows in and out. There are payments received and made. As a bookkeeper, you'll be responsible for tracking them with computerized software. You'll need to make regular reports about cash flow to the company managers.

Bookkeepers have many responsibilities which include, record financial transactions, reconcile bank accounts and manage bank feeds, manage accounts receivable, work with tax preparers and assist with tax compliance, and generate financial statements.

These statements, such as the income statement and the balance sheet, are derived from the regular bookkeeping work they perform, like recording daily transactions and ensuring all financial data is accurate and current.

Is bookkeeping hard? The short answer is no. It's a common misconception that you need a formal education to be a bookkeeper, but anyone with solid math skills and the right resources can do it. Bookkeeping usually involves categorizing and entering financial data into an accounting system.

Bookkeeping is the process of recording your company's financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of your accounting process for a few reasons.

What pays more, accounting or bookkeeping? ›

Salaries are typically based on education, certification, years of experience, credentials, industry or employer, job description, location, and complexity of work. According to the U.S. Bureau of Labor Statistics for 2021, the national average salary for bookkeepers was $45,560 and for accountants was $77,250.

A bookkeeper is not an accountant, nor should they be considered an accountant. Bookkeepers record financial transactions, post debits and credits, create invoices, manage payroll and maintain and balance the books.

Many bookkeeping professionals agree that their profession does not require any supernatural skills. As far as newcomers to the accounting industry are concerned, they certainly have a hard time at first. Yet, the same can be said about any other profession. All skills and abilities come only with time and experience.

An industry standard would be to charge about 1-3% of your client's gross income, and that is about what they should spend on a monthly bookkeeper (or all of their bill pay and invoicing or other office tasks).

If you need someone to manage daily transactions, a bookkeeper will do just fine. But for tax advice, investment strategies, or handling audits, aim for a certified accountant. Remember, striking the right balance is key to maintaining your financial health.

BOOKKEEPING JOB DUTIES AND RESPONSIBILITIES

Assist in annual budget and financial audit processes. Assist in grant tracking and closing process. Act as a liaison between the finance department and various departments within the organization. Other ad hoc analysis directed by management and/or a third-party accountant.