What Does a Bookkeeper Do? UK Business Guide 2026/27

A bookkeeper records and controls a business’s day-to-day financial activity so that owners and accountants can rely on the figures. The role commonly includes sales and purchase records, bank reconciliation, expenses, credit control, payroll support, VAT preparation and regular reports. The exact duties depend on the engagement and the bookkeeper’s competence.

Core bookkeeping responsibilities

• Record transactions: post sales, purchases, receipts, payments, refunds and journals to the correct accounts.
• Maintain evidence: attach invoices and receipts and keep a clear audit trail.
• Reconcile accounts: compare bank, card, payment-platform and loan balances with external statements.
• Manage sales ledger: issue invoices, allocate receipts and report overdue customers.
• Manage purchase ledger: enter bills, check approvals and prepare supplier payment information.
• Process expenses: review employee and director claims against the business policy and tax rules.
• Support payroll: maintain input data, process routine pay or post payroll journals and reconcile liabilities.
• Support VAT: apply routine VAT codes, reconcile the VAT account and prepare returns where authorised.
• Produce reports: provide profit and loss, balance-sheet, cash-flow, debtor and creditor information.

What does a bookkeeper do each week or month?

1. Collect source documents and import bank feeds.
2. Code transactions and resolve missing information.
3. Reconcile every balance-sheet account, not only the main bank.
4. Review unpaid invoices and supplier balances.
5. Post payroll, VAT, asset and finance entries.
6. Investigate suspense accounts, duplicates and unusual movements.
7. Close the period and produce reports for review.
8. Back up records and maintain the compliance calendar.

Bookkeeper versus accountant

There is overlap, and neither title alone guarantees a particular qualification or regulated status. The engagement letter should define who performs and reviews every task.

What is the business owner still responsible for?

Outsourcing does not remove the owner’s, employer’s or director’s responsibility for accurate information, filings and payments. Management should:

• approve supplier and bank payments;
• review reports and unusual transactions;
• protect banking and software access;
• provide complete documents on time;
• authorise HMRC submissions through the proper agent process;
• retain ownership and exports of its accounting data.

Can a bookkeeper submit VAT and payroll returns?

Yes, when experienced, properly authorised and working within an agreed scope. More complex issues should be escalated to an accountant, tax adviser or employment specialist. See our guide to bookkeeper VAT and payroll services.

Making Tax Digital and software

A bookkeeper can configure compatible software, digital records, bank feeds and receipt capture. For MTD for Income Tax, qualifying income thresholds are above £50,000 from April 2026, above £30,000 from April 2027 and above £20,000 from April 2028. Eligibility belongs to the taxpayer, so confirm the latest rules rather than assuming software alone provides compliance.

What should a good bookkeeper deliver?

• reconciled accounts with explained differences;
• an audit trail and accessible source documents;
• a list of missing information and unresolved items;
• regular cash, profit, debtor and creditor reports;
• advance notice of filing and payment dates;
• a clear handover package for the accountant and business.

How to choose a bookkeeper

1. Look for relevant sector, VAT, payroll and software experience.
2. Check references, professional membership and insurance.
3. Ask about anti-money-laundering supervision and data protection.
4. Agree frequency, turnaround, fees and cover during absence.
5. Use role-based access and keep payment approval separate.
6. Review quality after the first month or quarter.

Read how to hire a bookkeeper for a small business.

Official guidance

• GOV.UK: company and accounting records
• HMRC: authorising a tax agent

This guide provides general information. Tax filings and advice should be handled by someone competent for the work.