What Is A Bookkeeper, and Why Does It Matter?

No, I'm not going to start with Webster's definition. It isn’t that kind of post.

I've been a bookkeeper for a long time. Before that, people have been calling themselves bookkeepers for generations. What I’m trying to say is this isn’t a new profession. It should be reasonably easy to describe. However, that hasn’t been my experience. It is especially true of people requesting my services.

I think we can all agree on some basics.

• Bank reconciliations
• Invoicing
• Questionably funny math jokes

And, assuming you're working with a small business, you can toss in Accounts Receivable and Payable. If there's a dedicated person or team in charge of either of those where you work, your job title is probably more specific than Bookkeeper.

And yet, here's what I hear from most people when I tell them what I do.

"Cool, can you help me with my taxes?"

Or what I used to hear a lot from new clients when I was working in their office.

"We're heading out for lunch. Can you handle the phones while we're gone?"

So then, what is a bookkeeper?

It might sound reductive, but it's whatever you decide it is. More importantly, it's whatever definition you and your client agree upon.

Your clients will draw on their past experiences.

There are a lot of small businesses out there that have one person who runs the office. They answer phones, create invoices, distribute payroll, and pick up sandwiches for everyone on their way back from the bank. I’ve taken over for a handful of people like this when they retired.

Or they've got a cousin who's a bookkeeper but also helps them file their taxes as a family favour. If you replace “cousin” with every familial association, that describes my Aprils.

For those people, that's a bookkeeper.

Why is it important to know what a bookkeeper is?

It only matters when there’s a disconnect between what you and your client think it means. Before you get started with a new client, it’s crucial to clarify what services you do and don’t provide.

There isn’t a universal list. Oh sure, there’s a pretty common place to start. In addition to the tasks I listed above, you’ll be generating some type of financial reports. You’ll also be coordinating with a tax preparer or accountant.

After that, the list can be as long or as short as you like.

It is crucial for two main reasons.

You’re a new bookkeeper, and there are tasks you’re not comfortable performing yet.

I have been here many times, but especially early on in my career. No matter how long you’ve been a bookkeeper, there are tasks or industries that you just don’t have any experience with.

I’m a huge fan of pushing yourself to learn new bookkeeping skills but to a point. If you’ve never seen a tax return before, don’t agree to file your client's T2. It might be a bit embarrassing to admit you can’t perform specific tasks, but it will save you a lot of trouble in the long run.

You provide advanced or additional features that you want to offer your client.

If, on the other hand, you’re highly skilled at tax preparation, payroll, or data analysis, let them know. Your potential client may have assumed they’d have to outsource those tasks to another contractor. It is a great way to sell additional services and increase client retention.

So while there might not be one definition of “bookkeeper,” you should take the time to figure out yours. Spend an afternoon mapping out your skills and services.

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