What Does a Bookkeeper Do? (Hint: More Than You Think!)

If you’re an entrepreneur or business owner, the last thing you want to worry about is how to keep your books in order. In addition to keeping your finances in good shape, though, it’s important to make sure you have a qualified bookkeeper who can help ensure you meet all of your financial reporting and tax obligations. Here are just some of the things a bookkeeper does!

Preparing the books
The job of the bookkeeper is to record every expense, income, and expenditure of the company in accordance with Generally Accepted Accounting Principles. The purpose of this task is to give insight into the financial health of the company and show trends in sales or costs over time. Essentially, a bookkeeper makes sure that all monies collected for and spent by a business are recorded. In short, you can think of them as numbers ninjas.

Keeping track of cash flow
When someone wants to know where their money is going and when, that person needs an accountant. With cash flow accounting, an accountant tracks the amount of money you take in by your customers, as well as the expenses you’re incurring. They also look at how much money you’re spending in comparison to what’s coming in. This can help make changes on the fly if things are going wrong; for example, if your expenses are more than what’s coming in from customers.

Managing your finances
Starting on any financial goal like becoming debt-free or saving for retirement can be daunting. But understanding your finances is the first step to starting an achievable plan. Keeping track of your income and expenses will help you stay accountable and keep an eye on what money goes where, but it’s also important to ask yourself questions about how you’re spending your money. What could you cut back on? Could you scale back some non-essential expenses, like cable or pricey groceries?

Working with taxes
A bookkeeper’s work is often hidden from the public eye. While it may not be as glamorous as being an CPA , bookkeepers are vital to the success of small businesses and are experts in their field.