Bookkeeping
What does a bookkeeper do? Duties, records and pay, from BLS and IRS sources
A plain description of a bookkeeper's job from the Bureau of Labor Statistics: the ledger, deposits, payables, receivables, reconciliations and reports. Plus the IRS records a bookkeeper keeps, how long to keep them, and May 2025 pay.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
A bookkeeper keeps a business's financial records complete and accurate. The Bureau of Labor Statistics says bookkeepers are often responsible for some or all of an organization's accounts, known as the general ledger: they record all transactions, post debits and credits, prepare bank deposits and produce financial statements and other reports. The median pay for bookkeeping, accounting and auditing clerks was $50,670 a year, or $24.36 an hour, in May 2025.
The job in one paragraph
The BLS groups bookkeepers with accounting and auditing clerks. Together, they compute, classify and record data to help organizations keep complete and accurate financial records. The federal occupation code is 43-3031, and it excludes payroll and timekeeping clerks, who have their own code, 43-3051.
Within that group, bookkeeping clerks, also known as bookkeepers, often handle some or all of the general ledger. Some are full-charge bookkeeping clerks who maintain an entire organization's books.
What a bookkeeper does, task by task
The BLS lists these typical duties for the occupation:
- Use bookkeeping software, spreadsheets and databases
- Enter (post) financial transactions, using information from receipts or bills
- Receive and record cash, checks and vouchers
- Put costs (debits) and income (credits) into the software, assigning each to an account
- Produce reports such as balance sheets, income statements and totals by account
- Check figures, postings and reports for accuracy
- Reconcile, or note and report, any differences found in the records
Money in, money out: deposits, payables and receivables
The records bookkeepers work with include expenditures, the money spent, and receipts, the money that comes in. They also work with accounts payable, the bills to be paid, and accounts receivable, the invoices or what other people owe the organization.
The BLS says bookkeepers prepare bank deposits by compiling data from cashiers, verifying receipts, and sending cash, checks or other payments to the bank. They may also handle payroll, make purchases, prepare invoices and keep track of overdue accounts. They may produce profit and loss statements, which show the organization's financial health.
The IRS side: books, documents and how long to keep them
The IRS doesn't require any particular bookkeeping method. It does require one that clearly and accurately reflects your gross income and expenses, with records that back up both.
IRS Publication 583 describes the two common systems. A single-entry system is based on the income statement and records the flow of income and expenses. A double-entry system gives each account a left side for debits and a right side for credits, and records every transaction as a debit in one account and a credit in another, so total debits must equal total credits.
The books are built from supporting documents. The IRS lists sales slips, paid bills, invoices, receipts, deposit slips and canceled checks. It also says you should reconcile your checking account each month, to verify the balance, make sure your books show all bank charges, and correct errors.
A bookkeeper also tracks the paperwork for people the business pays. Form W-9 collects a payee's SSN or EIN, and if the payee doesn't give one, backup withholding may apply at a flat 24%. Form 1099-NEC reports payments to nonemployees for services of $600 or more in a year, or $2,000 or more for payments made after December 31, 2025. Employers report withheld income, Social Security and Medicare taxes on Form 941 or Form 944.
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| Situation | Keep records for |
|---|---|
| Most returns | 3 years |
| Claim for credit or refund filed after the return | 3 years from filing or 2 years from paying the tax, whichever is later |
| Unreported income over 25% of the gross income shown | 6 years |
| Claim for a loss from worthless securities or a bad debt deduction | 7 years |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later |
| Property records | Until the period of limitations ends for the year you dispose of the property |
Bookkeeper vs accounting clerk vs auditing clerk vs accountant
The BLS separates the roles like this.
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| Role | What they do | Entry-level education | Median pay, May 2025 |
|---|---|---|---|
| Bookkeeping clerk | Some or all of the general ledger: records all transactions, posts debits and credits, produces statements | Some college, no degree | $50,670 (whole clerk group) |
| Accounting clerk | Specialized tasks at larger companies, with titles such as accounts payable clerk or accounts receivable clerk | Some college, no degree | $50,670 (whole clerk group) |
| Auditing clerk | Checks figures, postings and documents for accuracy and coding. Fixes small errors and flags big ones to senior staff | Some college, no degree | $50,670 (whole clerk group) |
| Accountant and auditor | Prepares and examines financial records | Bachelor's degree | $83,680 |
Pay, training and outlook
The median annual wage for bookkeeping, accounting and auditing clerks was $50,670 in May 2025, or $24.36 an hour. The lowest 10% earned less than $36,000 and the highest 10% more than $74,550. By industry, medians ran from $45,830 in retail trade to $54,890 in construction.
Typical entry-level education is some college with no degree, and some employers hire workers with a high school diploma. Training is moderate-term and on the job. Certification isn't usually required, though some clerks earn it to show competency.
The occupation held about 1.5 million jobs in 2025. The BLS projects a 6% decline from 2025 to 2035, with about 144,100 openings a year. With more routine work automated, it expects these workers to take on a more analytical and advisory role, such as reviewing clients' books for efficiency gains.
Aldro does this work as a monthly service. Our team keeps the books for $20 a month, covering unlimited bank and card accounts, monthly reconciliation and statements, and the flat yearly tax price covers everything tax.
Worked example
Here is one transaction the way IRS Publication 583 shows it in a double-entry general journal. On October 5 the business pays rent of $780.00. The bookkeeper debits Rent expense $780.00 and credits Cash $780.00. Total debits ($780.00) equal total credits ($780.00), so the entry balances. At month end, the bookkeeper compares the Cash account with the bank statement as part of the monthly checking account reconciliation the IRS recommends, and files the paid rent bill or canceled check as the supporting document. Under the IRS record rules, that document is generally kept for 3 years after the return is filed.
Common questions
What does a bookkeeper do day to day?
Posts transactions from receipts and bills into software, records cash and checks, assigns debits and credits to accounts, prepares bank deposits, tracks payables and receivables, reconciles differences and produces reports.
What is the difference between a bookkeeper and an accountant?
The BLS describes bookkeepers as recording transactions and keeping the general ledger, with some college as the typical entry level. Accountants and auditors prepare and examine financial records, typically need a bachelor's degree, and had a median pay of $83,680 in May 2025.
How much does a bookkeeper make?
The median for bookkeeping, accounting and auditing clerks was $50,670 a year ($24.36 an hour) in May 2025. The lowest 10% earned under $36,000 and the highest 10% over $74,550.
Does the IRS require a certain bookkeeping method?
No. Any method works if it clearly and accurately reflects gross income and expenses and the records back them up.
How long should a bookkeeper keep business records?
Generally 3 years, at least 4 years for employment tax records, 6 years if income over 25% of gross income went unreported, and 7 years for worthless securities or bad debt claims.
The cheapest way to get your business taxes done: $399 flat.
Business tax filing is $399 USD a year, and it covers everything tax for that year.
How it works
- Tell us about your business. A two-minute form. No payment is collected through it.
- Get your next steps by email. We’ll email you the next steps within one business day. After you sign up we’ll send you a secure upload link for your documents.
- We file it. Our team prepares and files your return. Add bookkeeping for $20 a month if you want it.
What's included
$399 a year covers everything tax for that tax year.
- Every business return for the year. All the federal and state or provincial business returns you need for the tax year: Schedule C, 1065, 1120-S, 1120 and their state returns in the US; T2, or T1 with T2125, in Canada.
- More than one state. Multi-state returns are included at the same price.
- Your personal return. The owner’s personal return (1040 or T1) is included when it’s needed for the business income.
- Quebec. Quebec returns (CO-17, TP-1 and TP-80) are included. Our Quebec pages are in French, and our team works with you in English.
- Extensions and reminders. Extensions (Form 7004 or 4868) and quarterly estimate reminders are included.
- Information returns. 1099-NEC, T4/T4A and T5018 slips are included in the tax price.
- City and excise returns. City and local business tax returns, and state excise returns such as Washington B&O, are included in the yearly price.
- Franchise tax reports. State franchise tax reports, such as the Texas franchise tax report, are included.
- Estimated tax and instalment amounts. We work out your quarterly estimated tax payments in the US, or your CRA instalments in Canada, and tell you what to pay and when.
- Unfiled past years. Each unfiled prior-year return is $399 per tax year, the same flat price.
- Bookkeeping at $20 a month. Unlimited bank and card accounts, monthly reconciliation and monthly statements.
Basic inventory tracking for online stores, such as Shopify, is included. Full cost-of-goods reconciliation is quoted separately. Payroll processing and sales-tax filing aren’t included in bookkeeping. Prices are in USD. Our team prepares and files your return.
Sources
- BLS: Occupational Outlook Handbook, Bookkeeping, Accounting, and Auditing Clerks · checked October 31, 2026
- BLS: Occupational Employment Statistics, 43-3031 · checked October 31, 2026
- IRS: Topic 305, Recordkeeping · checked October 31, 2026
- IRS: Publication 583, Starting a Business and Keeping Records · checked October 31, 2026
- IRS: How long should I keep records? · checked October 31, 2026
- IRS: Topic 307, Backup withholding · checked October 31, 2026
- IRS: Form 1099-NEC and independent contractors · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.