Most small business owners figure they probably need a bookkeeper and are fuzzy on what the work involves week to week, or where it stops, so some pay for help they never fully use and others go years without books they can trust.
What a Bookkeeper Actually Does
A bookkeeper records and organizes the money moving through your business so your financial records stay accurate and current.
The recurring tasks usually include:
- Recording income and expenses as they happen, with the receipt or invoice filed behind each one
- Categorizing every transaction so it lands in the right account
- Reconciling your bank and credit card accounts against the statements each month
- Tracking money customers owe you and bills you owe others
- Running payroll, or preparing the numbers your payroll service needs
- Monthly reports, usually a profit and loss statement and a balance sheet
- Keeping the records complete so your tax preparer starts the year with clean numbers
Some bookkeepers handle all of this, others a slice of it. The scope depends on the size of your business and what you have chosen to keep in house.
The Monthly Bookkeeping Cycle
Most of a bookkeeper's work runs on a monthly rhythm. Transactions get recorded and categorized through the month, accounts get reconciled once the statements arrive, and the month closes with a set of reports you can actually read.
The closing step is where the value is. A month that has been recorded but never reconciled against the statements is usually where the errors are sitting. If the reports still look like a foreign language, our guide to reading a P&L and balance sheet walks through the lines that matter.
What a Bookkeeper Does Not Do
A bookkeeper keeps your records accurate and current. An accountant, and especially a CPA, takes those records and interprets them: tax strategy, filing returns, representing you before the IRS, and higher-level planning. The roles overlap at the edges, and one firm may offer both, but they are not the same job. We break down the distinction in bookkeeper vs. accountant.
A bookkeeper also does not make the business decisions for you. The job is to hand you reconciled numbers to make them with.
What Clean, Current Books Get You
When the bookkeeping is done well, several things get easier:
- You can see whether last month actually made money, rather than only watching the balance move up or down
- Tax season stops being a scramble, because the year is already recorded and reconciled
- A loan or line of credit application goes smoother, because lenders want current financials they can rely on
- Problems surface early: a duplicate charge, a customer who never paid, a cost quietly creeping up
Do You Need a Bookkeeper?
A few signs point to yes. Your books are months behind and catching up keeps getting pushed off. Data entry is eating evenings you would rather spend elsewhere. A simple question like "what did I spend on materials last quarter" takes a lot of digging to answer. Or the reports exist, but you are not sure they are right.
If any of that sounds familiar, the fix is usually straightforward. Books that have fallen behind can be caught up, and once they are current, a monthly routine keeps them that way.
Getting help with the books
At Shea Business Solutions, we handle monthly bookkeeping for small businesses across the Orlando area, from recording and reconciling to the reports that tell you where you stand. If your books are behind, or you are simply not sure they are accurate, reach out for a free consultation and we will take a look together.