What Bookkeepers Do. A Typical Day

Published: February 2025
Last Updated: May 2026

In this post, we discuss:

The Bookkeeper’s Role
Bookkeeper’s Tasks
Non-Profit vs For-Profit
Treasurer vs Bookkeeper
Accountant vs Bookkeeper
Typical day

Every business, big or small, needs a bookkeeper. Any business type: sole trader, limited company or partnership needs a bookkeeper. Any sector: public (government) or private (companies) needs a bookkeeper. Although some tasks vary depending on the role, the main responsibility to accurately record transactions remains. In this post, let’s explore some different cases of bookkeepers’ work, different tasks in comparison to the accountant and a typical day.

The Bookkeeper’s Role

Contraction obligations

The first subgroup of how businesses employ bookkeepers is when they are hired as a company’s bookkeepers (also known as in-house) or as service bookkeepers (or outsourced). The company’s bookkeeper processes the transactions for the business that employs them directly through an employment contract for an agreed salary. As an employed bookkeeper, your tasks are related to the daily activities of that business: like entering sales or purchase invoices, bank entries and reconciliation of the accounts, payments to suppliers, preparing aged receivables, chasing unpaid bills, and assisting with the reports.

A service bookkeeper may have multiple clients of their own and be hired to help their clients with their needs. The latter chooses their own fee, with whom they would like to work and have a service contract, which defines all conditions. With multiple clients, you may have different tasks, depending on the agreement. For example, for some clients, you may only enter business transactions and reconcile their accounts, while for other clients, you may also run payroll and assist with value-added tax filing.

Comparison between an in-house and an outsourced bookkeeper

In-house bookkeepers have some stability in their jobs and monthly pay. This takes a lot of stress away in comparison to service bookkeepers.
In addition to the above, if the client does not pay, your employer would still be obliged to pay you a salary. In other instances, the outsourced bookkeeper can proceed with court filing for unpaid bills, and this takes months to resolve without any guarantee of seeing a pay.
As an outsourced accountant, there are two dilemmas: first, you may be pressured to work with any business that pays the bill, especially if you are a small business. If you have established a client’s database, you can choose with whom you like to work to deliver the value for the amount you feel is fair.
Time management is really a huge difference here, as an employee, you have no control over your working hours, and most of the time it is a 9-5 job. The outsourced bookkeeper can choose how to manage their time more effectively.
When working for a business, you have statutory payments paid by the employer, like maternity or sick leave, holidays, etc. This does not apply to the outsourced bookkeeper.
Place of work is also a key difference, although after the pandemic, many switched to working remotely or part-time. Nevertheless, most businesses want their employee to be present in the office at least some days. The outsourced bookkeeper may also be asked to come in for a day, but typically, they would work remotely. Based on my experience, it is not cost-effective to spend two hours on travel to a client for bookkeeping tasks, which can be done online.

There are exceptions depending on your contract with the client as an outsourced bookkeeper. It is really vital to ensure you have a well-written engagement letter, signed by both yourself and the client, where it clearly states what you do to avoid any questions of negligence in the future.

Bookkeeper’s Tasks

Regardless of the sector, the main responsibilities include recording the financial data into software. As well as maintaining the records accurately and up to date. Below are the key tasks:

Transaction Recording. Using an accounting software, raise a sales invoice and send it to the client. Then enter the purchase invoice details into the ledger as per the document received from the supplier. Enter bank entries as per the statement or upload a bank statement (if there is no set up bank feed). Mark invoices as paid or received on the system. Basic skill here is to ensure you enter information accurately and on time!
Bank Reconciliation. Finding and matching what has gone through a bank to what is on your accounting system, which should match. Investigating any differences and making corrections to ensure that at the end of the period. The reconciling balance as per the bank statement is the same as your balance as per the ledger. There should be no unknown (suspense items), those should be sorted by the end of the accounting year.
Accounts Payable/Receivable. Checking payments we expect from clients (receivables) and payments that we need to make to our suppliers (payables). So the task is to run both reports regularly (without bothering clients too much), sending statements or reminders. Otherwise, setting up payments depending on the cash flow and bank balance situation for the payments. Basic skill here is planning well, ensuring that you have enough cash and pay within the terms agreed.
Payroll. Setting up a new employee with accurate data from P45 or other tax documents, entering sick, holiday and maternity leave, checking timesheets. Then setting up a payroll, submitting to the tax office and paying taxes on time, making payroll payments. Finally, sending payslips and other reports to employees.
Reports. Running the reports as agreed for aged receivables or payables, profit and loss or balance sheet, assisting with a budget or value-added tax – those could be a part of the job, but not at an advanced level. VAT reports are typically done by a qualified accountant with an appropriate knowledge of the tax law on this topic.

Non-profit vs For-Profit

Your role as a bookkeeper may be different, depending on the business entity type. For-profit examples of companies are limited, and partnerships are created to create financial benefits to its stakeholders. Stakeholders are related parties, such as shareholders, employees, tax authorities, banks, and suppliers.

Non-profit entities are focused on social, education, health and charitable work. The main goal of a non-profit is to deliver value to the community. Tasks will depend on the charity’s needs, but able to organise grants and donations, record expenditures, and manage petty cash.

Treasurer vs Bookkeeper

The treasurer role is often required in the community, club or charities. Often, this role overlaps with that of a bookkeeper if the entity is small. The main difference is the scope; the treasurer has the following responsibilities:

Financial Oversight: Ensures the organisation’s funds are managed appropriately.
Budgeting: Develops and monitors budgets.
Reporting: Presents financial reports to the board or stakeholders.
Strategic Planning: Helps shape financial policies and long-term goals.
Compliance: Ensures adherence to legal, tax, and regulatory requirements.
Approval Authority: Often approves significant transactions or expenditures

The treasurer is a part of the revision and decision-making Board members and therefore has an active participation. The treasurer would be asked to attend the meetings and give their view on questions by the Board or members.

Accountant vs Bookkeeper

The bookkeeper records data into software, and the accountant will analyse this data to prepare annual accounts and calculate tax due. Accountant is certified and has a better understanding of journal entries, tax law and how to resolve more complex issues. Here are the examples of tasks done by the accountant:

Financial Reporting: Prepares detailed financial reports like balance sheets, income statements, and cash flow statements.
Tax Preparation and Filing: Calculates and files taxes for the organisation, ensuring compliance with tax laws.
Financial Analysis: Analyses financial data to provide insights into business performance.
Budgeting and Forecasting: Creates budgets and predicts future financial performance based on trends.
Auditing (maybe if licensed): Conduct or oversee internal and external audits to ensure accuracy and compliance.
Regulatory Compliance: Ensure financial activities adhere to legal and regulatory standards.
Strategic Advice: Advise on financial decisions, such as investments, cost-saving measures, or expansion plans.

An accountant fully relies on the bookkeeper’s work, and that is why accuracy is so vital.

Typical day

Typical day really depends on the above, what you do generally in various roles. I can share my own experience while working as an employed bookkeeper.

In the morning, after checking the post and emails and making notes of those that required urgent attention, I switch to those and resolve them. This way, the hot topics are being taken care of, and I can see what else is in my tray. Often, days are allocated: some days I enter all invoices, others I reconcile incoming bank transactions on Xero or other software and create up-to-date aged receivables and payables reports.

Based on the aged reports, I can begin a credit control: sending reminders for payments, statements by post or calling clients. If there are old debts, bring this to the attention of the manager so that these are either taken further to court or written off as bad debt.

Once a month, typically, I would prepare a payroll and ensure that all information is correct and checked with the manager before posting and paying. Once this is done, payment is set up with the bank, checked a few times, and payslips are emailed or posted.

I try to do a bit of reconciliation every day by matching statement transactions to Xero. The monthly reconciliation is done at the beginning of the next month, by then we have a closing bank balance and should be able to resolve all errors.

Bank reconciliation for me is by far the most important skill that anyone needs to master. The key is understanding nominal codes in the chart of accounts, knowing the system you use (Xero, QuickBooks).

You should now have an idea about the work bookkeepers do.

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