What in the World is a Bookkeeper?

Whenever I tell someone I am a bookkeeper, the next question is, "What is that?". Some people assume that it means you keep clients booked. Meaning that you make sure your clients are busy with their clients. That is a fantastic guess! The guess is partially correct; without our skills, our clients will not book anyone because they would be broke and burned out. So, what is a bookkeeper?

Very confused person

A bookkeeper is a professional who helps businesses and other organizations keep their finances in order. "Oh, so an accountant?" you might ask. No, accountants, take what bookkeepers provide and answer questions you might ask an accountant about your business. Also, accountants plug the bookkeeper's information into tax documents around tax time. Back to bookkeepers, in any case!

In the broadest sense, bookkeepers keep a business's finances organized, timely, and compliant. We collect and store business financial records such as cash flow (What is your money going to?), bank reconciliation (Is every transaction in your business account accounted for?), and profit and loss statements ( Even though you had revenue, did you make a Profit?). We ( Bookkeepers unite!) Make it possible for business owners to create budgets, identify trends, and make attainable goals. You might read all this and say, "Bria, I am still confused about what you do."

Okay, that's all right! We bookkeepers are good at breaking things down for you. So, let me share an example of what a bookkeeper does. As a business owner, one of your primary responsibilities could be ensuring your inventory is current and restocked when needed. When you order merchandise, your bookkeeper collects the receipt, enters the order into the general ledger, and files the record into your financial database. The cycle repeats. You buy an item, and I document the purchase.

I will send you reports at the end of every month and quarter. These reports help you see if you made an income, are spending correctly, and are charging properly. You can give these reports to your accountant, who will bow down to you because your finances are ORGANIZED. You will smile and thank your bookkeeper because we made your job 1000X easier. And we love doing it.

Now, only some bookkeepers are suitable for everyone. Every business is different. How your company operates is unique. One company is service-based, while yours may be inventory-based. One company may be for-profit, and yours is non-profit. So, your bookkeeping should follow suit. Great bookkeeping is a great tool to make business management more accessible and reach your goals as a small business owner.

Now, in blogs to come, we will talk about the many different facets of bookkeeping and how I can help you find tips and tricks to organize your finances.

Stay tuned!