What Does a Bookkeeper Do? Explained by a Professional

💰Bookkeepers categorize income and expenses to help businesses track their spending and prepare for tax time.

💸Managing accounts payable ensures that bills and expenses are paid on time, maintaining good relationships with vendors and suppliers.

💳Accounts receivable involves invoicing clients and tracking payments to ensure timely and accurate revenue collection.

💼Handling payroll involves calculating and processing employee wages, deductions, and taxes, ensuring compliance with labor laws.

📊Preparing financial statements like the profit and loss statement and balance sheet helps businesses analyze their financial performance and make informed decisions.

Do bookkeepers need to be certified?

—While certification is not always required, it can enhance a bookkeeper's skills and credibility. However, knowledge, experience, and accuracy are essential.

What software do bookkeepers use?

—Bookkeepers often use accounting software like QuickBooks Online or QuickBooks Desktop to track and manage financial transactions.

How much does a bookkeeper charge?

—The cost of bookkeeping services varies depending on factors such as the complexity of the business, the number of transactions, and the level of expertise required.

Can bookkeepers do taxes?

—While bookkeepers can assist with tax preparation by providing organized financial records, tax preparation itself is usually performed by certified tax professionals.

What skills are important for a bookkeeper?

—Key skills for bookkeepers include attention to detail, mathematical proficiency, organizational abilities, knowledge of accounting principles, and proficiency in bookkeeping software.

00:24The main tasks of a bookkeeper include categorizing income and expenses for tax purposes.

02:36Accounts payable management ensures that bills and expenses are paid on time, maintaining good vendor relationships.

03:35Accounts receivable involves invoicing clients and tracking payments to ensure accurate revenue collection.

04:08Bookkeepers handle payroll, calculating and processing employee wages, deductions, and taxes.

05:29Preparing financial statements like the profit and loss statement and balance sheet helps businesses analyze their financial performance.