How to Know if Your Bookkeeper is a Keeper: 5 Essential Tasks Every Business Owner Should Expect
Hiring a bookkeeper can feel like a big step for your business. Whether you already have one or are in the process of finding the right fit, the key question remains: Is your bookkeeper truly delivering value?
Many business owners know just enough about bookkeeping to recognize they need one but not enough to evaluate whether their bookkeeper is great—or even adequate. In this guide, we’ll break down what a top-tier bookkeeper should be doing for your business and how to tell if you’re getting your money’s worth.
What Is a Bookkeeper – and What Isn’t?
A bookkeeper is the backbone of your business’s financial health. They’re responsible for recording and maintaining all financial transactions, including expenses, sales, invoices, and payments. These records form the foundation for key financial reports like your balance sheet and income statement.
But it’s important to understand that a bookkeeper is not an accountant. While accountants provide tax advice, strategic financial guidance, and planning, bookkeepers focus on the day-to-day accuracy of your financial data. Some accountants may include bookkeeping in their services, but they’re often stretched thin across multiple roles, meaning they might not provide the depth and timeliness a dedicated bookkeeper can. (Keep in mind that a bookkeeper is neither a virtual assistant, office manager nor financial therapist either)
Sometimes, a skilled bookkeeper often goes beyond basic record-keeping. They may assist with accounts payable and receivable, payroll, or even tax preparation. However, it’s worth noting that these additional services usually come at an extra cost.
The 5 Essential Tasks Every Bookkeeper Should Handle
A top-tier bookkeeper does more than just crunch numbers. Here are five key tasks they should be performing for your business:
1. Accurately Categorizing Transactions
Every single dollar flowing in or out of your business needs to be properly categorized—whether it’s income, expenses, or assets. Proper categorization is critical for keeping your financial records clean and ensuring your taxes are accurate.
While there’s no strict licensing requirement to become a bookkeeper, look for professionals with formal training or certifications, such as a Certified Public Bookkeeper (CPB), Certified Bookkeeper (CB), or QuickBooks Intuit Certification. The more qualified they are, the less likely you’ll face costly errors or tax issues down the line.
2. Communicating Clearly and Regularly
Your bookkeeper should act as a financial translator, making your numbers clear and accessible. They should flag unusual transactions, explain discrepancies, and keep you informed about your financial health.
Regular communication—weekly or monthly, depending on your business complexity—is crucial. If you haven’t heard from your bookkeeper in over a month, it’s a red flag. Lack of communication often signals they’re not staying on top of your books.
3. Reconciling Accounts Monthly
Reconciliation ensures your books match your real-world financial activity. Your bookkeeper should request your bank and credit card statements every month and reconcile them promptly. This step is essential to catch errors, missed charges, or even fraudulent activity.
If your bookkeeper isn’t reconciling your accounts monthly, you risk financial inaccuracies piling up—and that’s a disaster waiting to happen.
4. Providing Monthly Financial Reports
Financial reports are your business’s health check-up. At a minimum, your bookkeeper should provide you with a profit-and-loss statement each month. These reports help you track cash flow, spot trends, and make informed decisions.
Beyond the basics, they can also generate reports like unpaid invoices, bills, or profit by customer. If your bookkeeper isn’t delivering these, you’re missing out on critical insights.
5. Making Manual Journal Entries When Necessary
Not all transactions fit neatly into predefined categories. For example, if you buy supplies in December but don’t use them until January, your bookkeeper should make manual adjustments to reflect this. These entries ensure your books align with your actual business activities.
Manual journal entries require skill and attention to detail, which is why hiring a trained bookkeeper with accounting knowledge is so important.
Why a Great Bookkeeper Is a Must-Have
A good bookkeeper is more than just a “nice-to-have”—they’re a critical part of your business’s success. By performing these five essential tasks with precision and timeliness, they can save you money, reduce stress, and give you confidence in your financial health.
If your current bookkeeper isn’t meeting these standards, it might be time to evaluate their performance or look for someone new. And if you’re searching for a bookkeeper, make sure to prioritize qualifications, communication skills, and their ability to handle these essential tasks.
Ready to Take Control of Your Business Finances?
Don’t settle for less than your business deserves. Whether you’re hiring a new bookkeeper or evaluating your current one, understanding what to expect will help you make the right choice.
If you’re looking for a professional, experienced bookkeeper to help your business thrive, schedule a consultation today. Let’s build a stronger financial future for your business together!
