What Does a Bookkeeper Do?

By Jake McKenna, FounderPublished 2026-10-17Last reviewed 2026-10-19

What does a bookkeeper do every month?

Small-business bookkeeping is often done on a monthly cycle. A typical month looks like this:

1. Collect the inputs. Bank and card statements, receipts, bills, invoices and payroll reports.
2. Record and code transactions. Each one goes to an account, such as sales, supplies, rent or fuel.
3. Reconcile. Match the books to bank and credit-card statements and chase any difference. See how to reconcile a bank account.
4. Manage payables and receivables. Track what you owe suppliers and what customers owe you. See accounts payable and receivable explained.
5. Handle payroll in the books. Some bookkeepers record payroll reports or coordinate with a payroll provider.
6. Prepare the month-end statements. Usually a profit and loss statement and a balance sheet.
7. Flag questions. Anything unusual goes back to the owner for an answer.

English Oak's bookkeeping service covers reconciliation, payables and receivables, month-end statements, payroll coordination, QuickBooks and Xero set-up and support, and sales tax support.

What does a bookkeeper do vs an accountant?

A bookkeeper records; an accountant interprets. The bookkeeper keeps the record of what happened. The accountant uses the record to prepare reports, give advice and, where qualified, file returns. In small businesses the roles overlap, and some people do both.

For the full breakdown including CPAs, see bookkeeper vs accountant vs CPA.

What is a bookkeeper vs a CPA?

A CPA is an accountant who holds a state license. Bookkeepers do not need that license to keep your books. The license matters for specific work, such as tax filings and audits. Bookkeeping is a different job, and a CPA's time can be better spent on tax and attest work. The two work well together: the bookkeeper keeps the books current, and the CPA uses them. English Oak works alongside your CPA or tax professional.

This is general information, not tax advice.

What does a bookkeeper not do?

Be clear about the limits.

• A bookkeeper does not usually prepare tax returns.
• A bookkeeper does not audit.
• A bookkeeper does not give investment advice.

English Oak does not prepare tax returns, audit or give investment advice. If your needs go past the books, the next steps are a controller or CFO: see controller vs CFO. In English Oak's words: bookkeeper, record it; controller, control it; CFO, drive it.

Why do small businesses hire a bookkeeper?

People come to English Oak for five common reasons:

• They have no time for it.
• They do not understand the numbers.
• They are behind on the work.
• A previous accountant let them down.
• Their provider is retiring.

If you are behind, the starting point is catch-up bookkeeping before monthly upkeep.

Do you need a bookkeeper?

Consider one if:

• You cannot say how last month went without opening three apps.
• Your bank accounts and your books disagree.
• You dread tax time because the records are not ready.
• You spend evenings on paperwork instead of the business.
• You are about to apply for a loan, take on a partner or sell.

You may not need one if you have very few transactions, use good software and reconcile every month. See does QuickBooks replace a bookkeeper.

What does good bookkeeping look like?

You can judge the work without being an accountant. Good books have a few visible signs:

• Every bank and card account agrees with its statement at month end.
• Few or no transactions sit in an "uncategorized" or "ask my accountant" account.
• Reports arrive on a predictable schedule.
• You can find any invoice or bill without a search.
• Personal and business spending are kept apart.
• Your CPA or tax professional is not asking for corrections.

If those are true, the bookkeeping is doing its job, whoever does it.

What does a bookkeeper cost?

It depends on volume, number of accounts and complexity. See what bookkeeping costs and outsourcing.

What English Oak Financial charges

English Oak Financial starts bookkeeping from $500 a month. Pricing is custom to your business and charged as one fixed monthly fee that includes all the work required. See the pricing page.

What should you expect to hand over?

A bookkeeper can only record what reaches them. A bookkeeper typically needs:

• Read access to bank and card accounts, or statements
• Sales records and invoices
• Bills and receipts
• Payroll reports
• Loan and lease paperwork
• Answers to the questions that come up

Set a monthly routine so documents arrive by a set date. Delays often come from missing paperwork.

Related pages

• Bookkeeper vs Accountant vs CPA: What's the Difference?
• How Much Does Bookkeeping Cost for a Small Business?
• Accounts Payable Process and Accounts Receivable Explained
• How to Reconcile a Bank Account in Bookkeeping