What Do Bookkeepers Do?Brian Jang ON February 4, 2021
You have most likely heard the term “bookkeeper” but if you are like most people, you probably have only a vague idea of what they do for a living. You may assume that they are accountants working under a different title, or you may have some other idea of their role and how they function within a business. If you have ever wondered “what do bookkeepers do” then keep reading and we will provide some answers.
What is Bookkeeping?
As the name implies, a bookkeeper handles the “books” of a business. This means that they will record the financial transactions of the business. Doing so allows them to track vital information that is used to make decisions regarding operations, financing, and investing.
The Role of a Bookkeeper
Knowing that a bookkeeper essentially keeps and maintains records is one thing, but what precisely do they do and how do they do it?
Bookkeepers will record all of the daily transactions of a business, which includes purchases, sales, and associated receipts. It also includes tracking sales and payments. Most often, this will be done using cloud accounting software. All these financial transactions are accurately recorded and stored securely. Receipts and other documents are typically stored digitally in the cloud using various apps such as Receipt Bank and Hubdoc. Accordingly, bookkeepers must also be familiar with multiple programs and applications.
In most cases, this sums up their work; further review of these documents would be completed by accountants who will take the records, classify them, then analyze, summarize, and interpret everything. In more simple terms, the bookkeeper gathers and stores all the financial data that accountants translate into more pertinent data.
Some bookkeeping firms will assume both roles, however, doing the work that would typically be passed along to accountants. These bookkeepers may offer services such as data verification, preparing tax returns, offering advice on financial matters, analyzing accounts, and generating fiscal reports including P&L statements and balance sheets.
Having a bookkeeper who takes on these extra duties will not only save the expense of hiring a separate professional, but also will allow your bookkeeper to have a more complete view of your company’s financial affairs than either a bookkeeper or an accountant would normally have on their own. Having two individuals working for you will require them to coordinate their efforts and share information to have a comparable understanding.
If you need a firm that can offer you the convenience of both bookkeeping and accounting services, look no further than BCJ Group. We are here to meet all your bookkeeping, accounting, tax planning, and business advisory needs. Contact us today and we will help you reach all your business and financial goals.
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