Many people believe bookkeeping and accounting is an interchangeable term, but bookkeeping is a function of accounting, as accounting comprises of many functions which includes managing the financial affairs of a business.  Additionally, accountants prepare the reports based up many of the work of bookkeepers.

Bookkeepers would perform the following:

  • Preparation of source documents. These documents could include purchase orders, invoices, credit card slips, time cards and expense reports. Bookkeepers would also enter these source documents into the accounting system that effect the financial transactions and other business events.
  • Bookkeepers prepare reports at the end of a specific period of time, which could be daily, weekly, monthly, quarterly or annually. For accuracy of these reports, all accounts must be current and the reports reviewed to ensure they are correct.
  • Listings of all accounts are prepared by bookkeepers. These chart of accounts could range in the thousands for some larger businesses.

Lastly, a bookkeeper will also close the books. This means that they will bring all the bookkeeping for a fiscal year to a close and summarized.