“Do you do taxes?”

When I first meet someone, and they learn I’m a bookkeeper, one of the most common questions I hear is: “Do you do taxes?”

It’s an honest question and a sign of how easily the roles of bookkeepers and accountants get mixed up.

When I explain that I don’t prepare tax returns, but do handle tasks such as paying quarterly estimated taxes, managing payroll, and filing sales tax, there’s often a moment of confusion. And I completely understand why.

The worlds of bookkeeping and accounting overlap, and unless you live and breathe this stuff every day (your gasp of “eeewww, as if” is not taken with offense), it can be hard to tell where one role ends and the other begins.

My job as a bookkeeper is to keep your financial records accurate and organized year-round, so when tax season comes, your accountant has everything they need to file smoothly and you aren’t left scrambling.

Here’s why this matters more than you might think, and how organized records save you time, money, and stress.

The Real Cost of Messy Books

Disorganized records aren’t just inconvenient. They’re expensive.

Here’s what happens when your books aren’t ready at tax time:

• Higher prep fees: Accountants bill by the hour, and cleanup work takes time.

• Missed deductions: When expenses aren’t clearly documented, it’s easy to overlook legitimate write-offs.

• Filing delays: If your accountant has to track down missing numbers, your return could be filed late.

• Audit red flags: Inconsistent records make you look unprepared to the IRS.

Think of it this way: clean records are like a well-maintained car. You wouldn’t wait until your engine dies to get an oil change. And the same applies to your business finances. Regular maintenance throughout the year prevents more significant and costly problems later.

Why Your Accountant Isn’t Your Bookkeeper

It’s easy to confuse the two roles, but they serve very different purposes.

A Bookkeeper:

• Manages your day-to-day financial records.

• Categorizes business transactions.

• Reconciles bank and credit card accounts.

• Gives you accurate financial reports.

Their goal is accuracy and organization.

An Accountant:

• Files taxes and provides tax planning services.

• Prepares tax forms and submits them to the IRS.

• Uses the finalized data to calculate taxes.

• Reviews the reports for compliance.

Their goal is tax strategy and compliance.

If you only see your accountant once a year and expect them to “sort it all out,” you’re paying premium rates for work a bookkeeper could have handled faster and for less.

How Organized Records Help You Save

Here’s what happens when you deliver a clean, accurate set of books to your accountant:

• Lower accountant fees:
  When your accountant doesn’t have to spend hours untangling your records, their bill drops dramatically.

• More tax deductions:
  With well-categorized expenses, nothing gets missed, which means lower taxable income for you.

• Faster turnaround time:
  Your return can be filed on time (or early), avoiding penalties and stress.

• Peace of mind:
  You’ll know exactly where your business stands financially, so no surprises.

What “Organized Records” Look Like

If you’re doing it on your own, you don’t have to be perfect, but here’s a short checklist to get your books in shape before tax season:

• Bank and credit card accounts are fully reconciled each month

• All income and expenses are categorized correctly

• No transactions sitting in “Uncategorized” or “Ask My Accountant” accounts

• Receipts are stored digitally and linked to transactions when possible

• Payroll, loans, and sales tax are recorded accurately

• Financial reports (Profit & Loss and Balance Sheet) are reviewed regularly

If you’re using QuickBooks, check your dashboard for any alerts or errors every week. A few minutes of upkeep now can save hours later.

When to Bring in a Bookkeeper

If you find yourself scrambling every year to get things ready for your accountant, that’s a sign you need ongoing support.

A bookkeeper can:

• Keep your books accurate and updated year-round

• Prepare tax-ready reports every quarter or month

• Answer questions and help you understand your numbers

• Free up your time to focus on running your business

Even if you’re on a budget, having a bookkeeper do monthly or quarterly reviews can prevent a massive, expensive cleanup at year-end.

Your accountant is an integral part of your financial team, but their expertise is best utilized for tax strategy and compliance, rather than sorting through piles of uncategorized expenses.

By maintaining clean, organized records (or hiring a bookkeeper to do it for you), you’ll:

• Save money on accountant fees

• Reduce stress at tax time

• Gain clearer insight into your business’s health

The bottom line: A little bookkeeping throughout the year pays off big time when tax season arrives.

So, no, I do not “do” taxes, but we, as bookkeepers, make the process of doing your taxes much easier.