What does a bookkeeper do for a small business?

Updated October 29, 2026By ProfitDrawer

Short answer

A bookkeeper records and categorizes income and expenses, reconciles bank and card accounts, tracks bills and unpaid invoices, and prepares reports such as the profit and loss and balance sheet. The Bureau of Labor Statistics says bookkeeping clerks often maintain some or all of an organization's general ledger. A bookkeeper keeps the books; a tax preparer files the return. Owners who keep their own books can use a ProfitDrawer bookkeeping spreadsheet, with room for 1,000 income rows a year, for the same income and expense records.

Typical monthly tasks:

Enter or import transactions and assign each to the right account
Reconcile bank, card and payment app accounts
Record bills to pay (accounts payable) and invoices owed to you (accounts receivable)
Send reminders on late invoices, if agreed
Prepare a monthly profit and loss, and a balance sheet if needed
Flag unusual items and questions for the owner
Prepare year-end totals for the tax preparer

What a bookkeeper usually does not do: give tax advice or sign your return unless they are also a tax professional. The IRS requires anyone who prepares or helps prepare federal tax returns for pay to have a valid PTIN.

Bookkeeper, CPA or do it yourself? The SBA notes that a bookkeeper handles basic day-to-day tasks at a lower cost than a CPA, while a CPA has formal accounting education and offers more tailored service. Many small businesses do their own books during the year and pay an accountant at tax time.

Source: Bookkeeping, Accounting, and Auditing Clerks (U.S. Bureau of Labor Statistics) · Updated October 29, 2026