B1.1 What a bookkeeper does (and doesn't)
B1.2 The accounting equation
B1.3 Debits and credits with T-accounts
B1.4 Account types and where they appear
B1 Skill check: Bookkeeping foundations

Step 1 of 5

New words in this lesson

Bookkeeper

The person who records transactions, keeps the books tidy and up to date, reconciles accounts and prepares reports. Usually not licensed.

Accountant

A person trained in accounting who uses the books to prepare tax returns and financial statements and to give advice. May or may not be a CPA.

CPA

A US accountant licensed by a state board. CPAs can audit financial statements and represent clients before the IRS. Many small businesses send their year-end books to a CPA.

Business owner

The person who owns the business and makes the decisions: prices, hiring, big purchases. The bookkeeper works for the owner and reports to them.

Confidentiality

Keeping a business's financial information private. Bookkeepers see salaries, bank details and profits, and share them only with people the owner allows.

Source document

The paper or file that proves a transaction happened: a receipt, invoice, bill, bank statement or contract. Bookkeepers record from source documents and keep them.

Look up any other word in the glossary

Who does what

Three kinds of people look after a small business's money. Knowing who does what tells you which jobs are yours, and when to say "I'll check with the owner" or "that's a question for the CPA".

Who	What they do	At the café
	Records every transaction, keeps the books tidy, checks them against the bank every month, prepares reports	You, entering this week's sales and bills
or	Uses the books to prepare tax returns and give advice. Only a licensed CPA can audit financial statements. CPAs, enrolled agents and tax attorneys can represent a business before the	The café's CPA files its yearly tax return
	Makes the decisions: prices, hiring, big purchases, which bills get paid	Dana Brooks, who owns the café

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