A bookkeeper is responsible for recording, organizing, and maintaining a business’s day‑to‑day financial transactions so that the company has accurate, up‑to‑date records for reporting, taxes, and decision‑making. Their core role is to keep the books clean and balanced, which forms the foundation for financial statements and tax filings.​

1. Recording daily transactions

      Bookkeepers enter all financial activity into the accounting system, including sales, purchases, expenses, payments, and receipts. Each transaction is recorded with the correct date, amount, account (e.g., bank, revenue, expense), and supporting documentation (invoices, receipts, bills).​

      They use double‑entry bookkeeping (debits and credits) to ensure that every transaction is balanced and that the accounting equation 

$\text{Assets}=\text{Liabilities}+\text{Equity}$

Assets=Liabilities+Equity stays in balance.​

2. Managing accounts payable (AP)

      Bookkeepers track what the business owes to suppliers, vendors, and other creditors. They receive and verify supplier invoices, code them to the correct expense accounts, and schedule payments so bills are paid on time and within budget.​

      They also maintain the accounts payable ledger and ensure that payments are recorded accurately in the general ledger.​

3. Managing accounts receivable (AR)

      Bookkeepers track what customers owe the business by creating and sending invoices, recording payments received, and following up on overdue accounts. They keep the accounts receivable ledger up to date and may send reminders or work with management on collections strategies.​

This helps the business monitor cash coming in and manage credit terms with customers.​

4. Bank and credit card reconciliation

      A key responsibility is reconciling bank and credit card statements with the company’s books each month. Bookkeepers compare transactions in the accounting system to those on the bank statement, identify and correct discrepancies (like missing entries, duplicates, or errors), and ensure the cash balance is accurate.​

Regular reconciliation helps catch mistakes, fraud, or bank errors early and keeps the financial records reliable.​

5. Payroll processing

      In many small and mid‑sized businesses, bookkeepers handle payroll tasks such as calculating gross pay, deductions (taxes, benefits, etc.), net pay, and bonuses. They process payroll runs, issue paychecks or direct deposits, and ensure that payroll taxes (income tax, CPP/EI, etc.) are calculated correctly and remitted on time.​

      They also maintain employee payroll records and may prepare year‑end slips (like T4s or T4As) and related reports.​

6. Maintaining ledgers and the general ledger

      Bookkeepers maintain the general ledger, which is the central record of all accounts (assets, liabilities, equity, revenue, and expenses). They post journal entries, ensure transactions are in the right accounts, and keep the ledger organized and up to date.​

They also manage subsidiary ledgers for accounts receivable, accounts payable, inventory, and fixed assets, and ensure they tie back to the general ledger.​

7. Preparing trial balance and financial reports

      At the end of each month or period, bookkeepers bring the books to the trial balance stage, where all ledger accounts are totaled and checked for balance. They prepare basic financial reports such as:​

• Profit and loss (income) statements

• Balance sheets

• Cash flow summaries

• Aging reports (AR and AP)

• Sales and expense reports

      These reports help owners and managers understand the business’s financial position and performance.​

8. Inventory and asset tracking

      Bookkeepers may track inventory levels, record purchases and sales of goods, and help calculate the cost of goods sold (COGS). They also record and maintain records for fixed assets (like equipment and vehicles), including purchase dates, costs, depreciation, and disposal.​

      This supports accurate financial reporting and tax calculations.​

9. Tax preparation support

      Bookkeepers gather and organize financial data needed for tax returns, such as income, expenses, and payroll records. They may prepare or assist with GST/HST, sales tax, and income tax filings, and ensure that records are complete and supportable in case of an audit.​

      They also help ensure the business meets filing deadlines and stays compliant with tax laws and regulations.​

10. Using accounting software and systems

      Bookkeepers use accounting software (e.g., QuickBooks, Xero, Sage, NetSuite) to record transactions, reconcile accounts, generate reports, and automate routine tasks. They may also help set up or improve bookkeeping processes, implement internal controls, and train staff on proper procedures.​

      Staying current with software updates and best practices helps keep the books accurate and efficient.​

11. Ensuring compliance and accuracy

      Bookkeepers are responsible for maintaining accurate, complete, and organized financial records that comply with accounting standards (like GAAP) and tax regulations. They follow company policies, safeguard sensitive financial data, and ensure that all entries are supported by proper documentation.​

      Their work directly supports audits, financing applications, and regulatory filings.​