What does a bookkeeper do? A bookkeeper records every transaction your business makes, reconciles each bank and card account to its statement every month, keeps the payroll, sales tax, and contractor records current, and produces the monthly reports that show whether the business made money and where the cash went. The work is routine on purpose. Its value is that the numbers can be trusted.
This guide is for small business owners who have heard the title a hundred times and still are not sure what the job covers, what it leaves out, and when they need one. It explains the work in plain English, draws the line between a bookkeeper and a CPA, and shows what a normal month looks like at Books LA. If you keep your own books, the list doubles as the job description you are already doing.
What does a bookkeeper do, in one table
| Task | What it means in practice | How often |
|---|---|---|
| Record transactions | Every sale, purchase, payment, and deposit coded to the right account, with the receipt or invoice attached. | Weekly |
| Reconcile accounts | Each bank, card, loan, and payment processor account tied to its statement, to the dollar. | Monthly |
| Invoices and bills | Customer invoices issued and tracked, vendor bills entered and scheduled, agings reviewed. | Weekly |
| Payroll records | Each payroll posted so wages, employer taxes, and withheld liabilities land in the right accounts; deposits tied to filings. | Each payroll |
| Sales tax | Taxable sales tracked and reconciled to the return before it is filed. | Monthly or quarterly |
| Contractor records | W-9s collected, payments tracked, 1099 forms prepared in January. | Ongoing |
| Monthly reports | Profit and loss, balance sheet, agings, and a note on what moved. | Monthly |
| Year-end package | Reconciled books, fixed asset list, loan and equity detail, handed to the CPA. | Annually |
Most of the job is the first two rows. Everything else depends on them. So when people ask what does a bookkeeper do all month, the plain answer is: record, reconcile, and report, in that order.
Recording: every transaction, coded and supported
Bank feeds in QuickBooks Online and Xero pull transactions in automatically. However, the feed only knows the amount and the payee. The bookkeeper decides what each transaction is, which account it belongs to, and whether a receipt supports it. A $400 charge at a hardware store could be supplies, a repair, or a fixed asset. Each lands on the reports differently.
Good recording also means nothing waits in a parking lot. Accounts named “Ask my accountant” or “Uncategorized” should be empty by month-end. The IRS recordkeeping guidance is short, and attaching the document to the transaction is how a bookkeeper meets it without a filing cabinet.
Reconciling: the part that makes the numbers true
Reconciliation is the monthly test that compares the books to the bank. Every transaction on the statement should be in the books, and every transaction in the books should be on a statement. The ending balances should agree. When they do not, the difference is a duplicate, a missing entry, or a mistake, and the bookkeeper finds it before anyone reads a report.
This step is what separates books that are “caught up” from books that are correct. A feed can be current while the account has never been reconciled. Our guide to the monthly bookkeeping close shows where reconciliation sits in the routine, and the free DIY monthly close checklist lists the twelve checks that follow it.
Reporting: five reports and a short note
Once the month is reconciled, the bookkeeper produces the reports and, in a good practice, a few lines on what changed. The profit and loss answers whether you made money. Next, the balance sheet shows what you own and owe, and whether the cash number is real. Finally, the agings show who owes you and whom you owe. Our post on monthly financial reports explains the lines to read on each one. Reports that arrive six weeks late describe a month nobody remembers, so timing is part of the job.
What a bookkeeper does not do
- Prepare or advise on income tax. That is a CPA or enrolled agent. A bookkeeper hands over clean books and answers questions; the return and the strategy belong to the tax professional. Books LA does not provide income tax advice.
- Decide how to structure your business. Entity choice, SAFEs, loan terms: attorney and CPA territory. The bookkeeper records what the documents say.
- Replace your judgment. A bookkeeper can tell you payroll is 48 percent of revenue. Whether that is a problem is your call.
- Hold a state license. California licenses CPAs through the Board of Accountancy, but not bookkeepers. Software certifications from Intuit and Xero are the credentials that exist, so ask for them.
Bookkeeper, accountant, CPA: who does what
| Role | Does | When you need them |
|---|---|---|
| Bookkeeper | Records, reconciles, reports; runs payroll and sales tax records; prepares 1099s and the year-end package. | Every month, all year. |
| Accountant | Interprets the books: analysis, forecasting, advice on margins and cash. | At decisions and planning points. |
| CPA or enrolled agent | Prepares and signs the income tax return; advises on tax. | Year-end and tax questions. |
In a small business the bookkeeper is the one who is there every month. The CPA shows up in January and asks for a package. If the package is clean, the CPA’s bill is smaller, which is the quiet way a bookkeeper pays for the service.
What a month looks like at Books LA
In the first week, we code the prior month’s transactions, chase missing receipts, and post payroll. In the second week, we reconcile every account to its statement and clear anything parked. Then we run the five reports, read them the way an owner would, and send a short note on what moved and what needs a decision. Quarterly we tie out the sales tax return and the DE 9 before they are filed, and in December we assemble the year-end package. For clients in Los Angeles we also keep the city business tax calendar; our Los Angeles bookkeeping services guide explains that layer.
When you need a bookkeeper
Not at a revenue number. The signal is the month the close does not get done. Other signals: the P&L shows profit while the bank account is empty, the CPA sends a long list of questions every January, sales tax or payroll filings are a scramble, or you are raising money and the books have to survive an outside look. Our bookkeeper vs DIY post does the cost math, and the bookkeeper cost in Los Angeles guide covers what the service runs here. If you decide to hire, the guide to choosing a bookkeeper lists the questions to ask.
Frequently asked questions
What does a bookkeeper do on a daily basis?
Codes new transactions from the bank feeds, attaches receipts, issues or records invoices and bills, and posts payroll when it runs. Daily is rare for a small business; weekly is the usual rhythm, with the reconciliation and reports done once a month.
What is the difference between a bookkeeper and an accountant?
The bookkeeper records and reconciles what happened and produces the reports. The accountant interprets those reports and advises. A CPA is a licensed accountant who can also prepare and sign the income tax return. Many small businesses use a bookkeeper all year and a CPA at year-end.
Do bookkeepers do taxes?
Bookkeepers handle transactional taxes: payroll tax records and deposits, sales tax returns, 1099 forms. Income tax returns and income tax advice belong to a CPA or enrolled agent. Books LA works with each client’s CPA on income tax matters and does not advise on them.
Do you need a license to be a bookkeeper in California?
No. California licenses CPAs through the Board of Accountancy, but anyone can call themselves a bookkeeper. Software certifications, references, and a sample month-end package are how you check a bookkeeper’s work.
Can QuickBooks replace a bookkeeper?
QuickBooks records and sorts. It does not decide what a transaction is, notice a duplicate, or know that a deposit was counted twice. The software is the tool; the reconciliation and the judgment are the job. Many owners run the software themselves and hire out the monthly close.
How much does a bookkeeper cost?
In Los Angeles, most established small businesses pay between $400 and $1,500 a month for a fixed-scope service, depending on volume, payroll, and sales channels. Catch-up work is priced separately. Books LA packages start at $770 a month.
What does a bookkeeper do at year-end?
Reconciles every month through December, confirms the 1099 vendor list and W-9s, updates the fixed asset list, records the inventory count, and assembles the package the CPA needs: trial balance, loan and equity detail, and answers to the open questions. Done well, the CPA’s part takes days instead of weeks.
If you are not sure whether your books are getting that treatment, book a short call and we will read last month with you.
This post is general information. Books LA provides bookkeeping services and does not advise on income tax. We work with clients’ CPAs on those matters.
