If you’ve ever found yourself wondering,“Wait, what does a bookkeeper actually do?”—you’re not alone. Bookkeeping is one of those business functions that everyone knows they need, but few can explain clearly.
So let’s fix that.
In this guide, we’ll break down what a bookkeeperactuallydoes, what tools they use, when to hire one, and how they help your business stay financially healthy.
Are you looking for abookkeeper? BrowseSam's Listto find bookkeepers specialized to you and your needs!
TL;DR: Bookkeeper Job Description
| Task | Does a Bookkeeper Handle It? |
|---|---|
| Record daily transactions | ✅ Yes |
| Reconcile bank accounts | ✅ Yes |
| Run payroll | ✅ Sometimes |
| Prepare tax returns | ❌ No (that's usually an accountant or CPA) |
| Generate financial reports | ✅ Yes (basic ones) |
| Provide strategic advice | ❌ No (that's for accountants/fractional CFOs) |
Think of bookkeepers as thedaily maintenance crewof your finances. They keep your books clean, organized, and audit-ready.
Bookkeeper Responsibilities
Here’s what most bookkeepers are responsible for:
1.Recording Transactions
They log everything from invoices to payments to payroll entries—making sure your books reflect real financial activity.
2.Reconciling Accounts
They double-check that your bank statements match your records. This prevents errors, fraud, and missed transactions.
3.Categorizing Expenses
A good bookkeeper knows how to tag every expense correctly so that your reports (and taxes) are accurate.
4.Invoicing & Payments
They may help with sending invoices and tracking down outstanding payments, depending on the setup.
5.Generating Reports
Bookkeepers can prepare basic reports like:
Profit & loss statements
Balance sheets
Cash flow summaries
These reports are crucial for understanding how much you’re spending, what’s coming in, and how long your runway really is.
6.Staying Organized for Tax Time
Bookkeepers don’t usually file your taxes—but they do make tax time easier by keeping everything organized and categorized correctly.
What Tools Do Bookkeepers Use?
Most modernbookkeepersuse cloud-based tools. Common platforms include:
| Tool | Purpose |
| QuickBooks Online | General bookkeeping |
| Xero | Bookkeeping + integrations |
| Gusto | Payroll management |
| Bill.com | Accounts payable/receivable |
| Expensify | Receipt tracking & reimbursements |
| Hubdoc | Document management & OCR |
Many bookkeepers work inside the toolsyoualready use. Just make sure they’re familiar with your setup.
When Should You Hire a Bookkeeper?
You don’t need to hire someone on day one. But there are strong signs it’s time:
You’re making$100K+ in revenue
You havemore than 20 monthly transactions
You spend3+ hours/month on your books
You’relosing track of invoices or expenses
You want clean books ahead of tax season or fundraising
One founder onSam’s Listsaid: “Hiring a bookkeeper was one of the best investments I made. It freed up hours of time and gave me instant clarity on cash flow.”
Bookkeeper vs. Accountant: What’s the Difference?
Still confused? You’re not the only one. Here’s a quick breakdown:
| Bookkeeper | Accountant | |
| Records transactions | ✅ Yes | ✅ Sometimes |
| Provides financial reports | ✅ Basic ones | ✅ Advanced ones |
| Files taxes | ❌ Usually not | ✅ Yes |
| Offers financial strategy | ❌ No | ✅ Yes |
| Education/credentials | Often self-taught or certified | Usually has degree + license (CPA, etc.) |
FAQs
Can a bookkeeper do taxes?
No, bookkeepers typically do not file taxes. But they can work closely with your CPA to make tax filing seamless.
How much does a bookkeeper cost?
It varies! Freelance bookkeepers may charge $300–$1,000/month. Boutique firms cost more but often include extra support.
What should I look for in a good bookkeeper?
Look for someone who:
Understands your industry
Uses cloud-based tools
Communicates clearly
Can scale with your business
Can I do my own bookkeeping?
Yes—but only if you’re confident in your time, organization, and financial knowledge. Most founders outsource once they pass $100K revenue.
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Author: Kimi, Co-founder of Sam’s List
Kimi writes about what she’s learning while building Sam’s List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
