Knowledge / Roles
What does a bookkeeper do?
A bookkeeper records the money that moves through your business: bills you owe, invoices you send, and the bank and card activity that has to match. They keep the ledger current so you can see what you made, what you spent, and what is still unpaid.
The short answer
The job is the record. A bookkeeper posts transactions, matches them to bank and card feeds, and produces the reports you use to run the business. They do not file your tax return or give tax advice unless they separately hold that credential.
If you already use QuickBooks Online or Xero, a bookkeeper is the person who makes those numbers trustworthy. The software stores the data. The bookkeeper decides what each transaction is and whether it belongs in this month.
What a bookkeeper handles week to week
Most of the work is small and frequent. The point is to keep the queue short so month-end is a review, not a reconstruction.
Bills, invoices, and bank feeds
They enter vendor bills into accounts payable and customer invoices into accounts receivable. They code each line to the right account so rent does not land in office supplies.
They also work the bank and credit-card feeds. A $184.50 charge at Home Depot might be job materials, store fixtures, or the owner's personal run. The bookkeeper asks or uses your rules, then matches the feed line to the bill or receipt. Unmatched lines sit there until someone decides.
Payroll and sales tax (when they own it)
Some bookkeepers also post payroll journal entries after Gusto or QuickBooks Payroll runs, and they track sales tax collected so you can file on time. That is scoped work, not automatic. If payroll or sales tax is not in the engagement, those items still hit the bank and someone has to code them.
Ask up front: who files sales tax, who reviews payroll registers, and who owns 1099s in January. Those three tasks are where DIY shops usually slip.
What a bookkeeper does at month-end
Week-to-week posting is not the close. At month-end the bookkeeper reconciles every bank and card account to the statement, ages unpaid bills and open invoices, and checks that payroll and sales tax cleared.
Then they run the profit and loss, balance sheet, and accounts receivable / accounts payable aging. If cash on the balance sheet does not match the bank, the month is not closed. See monthly bookkeeping for the checklist.
What a bookkeeper does not do
A bookkeeper does not prepare or sign a business tax return. They do not represent you before the IRS. They do not design tax strategy or choose your entity type. Those sit with an accountant or CPA.
They also should not be the only person who can explain a large, unusual entry. If something looks off (a $12,000 'miscellaneous' expense, a loan that never hit the books), the bookkeeper flags it. The owner or the accountant decides what it actually was.
For the side-by-side, read bookkeeper vs accountant.
Do you need one if you already use QuickBooks or Xero?
Software does not close the month. Bank rules will miscode a personal Amazon order as office expense. Feeds go stale when a card is replaced. Invoices sit unsent because nobody opened the app.
You need a bookkeeper (or a tight DIY rhythm) if any of these are true: you have employees or contractors, you invoice customers, you hold inventory, or you cannot produce last month's P&L in ten minutes. If you are a single-member shop with a dozen transactions a month, you can do this yourself with a calendar reminder. See bookkeeping basics.
DIY, part-time hire, or full-service
DIY works when the volume is low and you will actually reconcile every month. A part-time bookkeeper (in-house or virtual) fits most 1–50 person businesses: they own the weekly posting and the close, and you review the reports.
Full-service (a firm that also has accountants) makes sense when you want one team for the books and the tax return. That is a different hire than 'someone to catch up QuickBooks.' Start with the vs page if you are choosing between those two seats.
Frequently asked questions
Do I need a bookkeeper if I use QuickBooks or Xero?
You need someone (you or a hire) who reconciles accounts and reviews the reports. The software stores transactions. It does not decide what they are or whether the month is closed.
What is the difference between a bookkeeper and an accountant?
The bookkeeper keeps the daily and monthly record. The accountant reviews that record, prepares financial statements or tax returns, and advises on tax and structure. Details are on bookkeeper vs accountant.
What does a bookkeeper do at month-end?
They reconcile banks and cards, age unpaid bills and invoices, post any missing payroll or sales-tax entries, and hand you a P&L and balance sheet that tie to the bank. See monthly bookkeeping.
Can I do the books myself?
Yes, if you will reconcile every month and keep source documents. Bookkeeping basics covers the records you need and a monthly rhythm that fits a small shop.
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