Bookkeeper

Definition

A person who records the accounts or transactions of a business.

Purpose

Bookkeepers are responsible for maintaining accurate financial records, including tracking income, expenses, and other financial transactions. This role is crucial for ensuring the financial health and transparency of a business, aiding in budgeting, tax preparation, and financial planning.

Examples of Use

• Recording daily sales and expenses in a small business to keep track of financial performance.
• Managing payroll, invoices, and accounts receivable for a company to ensure timely payments and accurate financial reporting.
• Preparing financial statements and reports to assist management in decision-making and strategic planning.

Related Terms

• Accountant: A professional who performs accounting tasks such as audits, financial statement analysis, and tax filings.
• Ledger: A book or other collection of financial accounts.
• Transaction: Any event that has a financial impact on a business and can be measured reliably.

Notes

Bookkeepers need to be detail-oriented and proficient in accounting software and financial record-keeping practices. Their work provides the foundational data necessary for higher-level financial analysis and decision-making by accountants and business managers.