Why “a bookkeeper is an essential foundation of any finance team”

With their vigilance of client accounts and their tech prowess, bookkeepers have plenty to offer organisations. Here employers tell us the reasons why they seek out qualified AATQBs.

In just four years, Reading-based accountancy firm striveX has generated a £1.5m turnover, employed 22 staff from scratch and built an enviable social media following of 62.3k Insta followers. It’s a meteoric rise, but what’s truly interesting is the team behind this success: nearly half (nine) of the striveX workforce are qualified bookkeepers.

Solid bookkeeping is the nuts and bolts of any business; it would be difficult to decipher any company accounts without it. The benefits they can bring to an organisation can be immeasurable.

“We’ve taken on some people who’ve gone into chartered qualifications straight from school but have missed bookkeeping qualifications,” says striveX Founder/Director Rachel Harris. “If we take on somebody like that, I’ll guarantee within six months they’ll be asking to do a week’s work experience with our bookkeeping team, because they don’t understand what’s going on at a basic level, such as debits and credits.”

“Every business can benefit from a skilled bookkeeper,” says Victoria Cooper, Principal at Cambridgeshire-based Red Shoes Accounting. “They handle the day-to-day financial tasks that keep everything running smoothly, allowing accountants to focus on the bigger picture. Depending on your business size and needs, an accountant can add additional value, but a good bookkeeper is an essential foundation for any successful finance team.”

Meanwhile, the advent of Making Tax Digital and cloud accounting means many businesses are seeking qualified bookkeepers who can prepare and interpret financial statements in real-time.

It’s a volte-face from the traditional perception of bookkeepers. For many years the profession has been saddled with an unfair reputation: many employers believing it to be the ‘less fun’ part of accountancy, largely involving mundane data entry on Excel and only needed when preparing year-end accounts.

This couldn’t be further from the truth: today’s bookkeepers play a vital role safeguarding the financial health of businesses and their clients, as we discover here.

Bookkeeping vs accountancy: what’s the difference?

Bookkeeping and accountancy might seem highly related, but their responsibilities differ in many ways. Of course, any qualified accountant should know how to manage the books, but they’ll also be involved with creating reports from transactions, interpreting data, advising clients, completing audit processes and other year-end work.

On the other hand, bookkeeping is essential for maintaining the day-to-day financial health of a business. Put simply, bookkeeping involves keeping records of a company’s receipts, invoices, VAT claims and corporation tax. Their daily tasks could include preparing sales/purchase invoices, working on payroll journals, ensuring staff are paid correctly by updating PAYE tax codes and checking pension payments.

“While there’s some overlap, the distinction [between bookkeepers and accountants] lies in the depth of focus,” says Cooper. “Accountants often don’t have the time to delve into the minutiae of record-keeping, which is where dedicated bookkeepers excel. Our bookkeepers meticulously maintain client records which ensures high standards of accuracy and allows our accountants to focus on interpreting that data and providing strategic insights to our clients.”

Why hire bookkeepers?

Bookkeepers provide essential support to accountants

Red Shoes Accounting has two dedicated AAT-qualified bookkeepers: Annie (who joined from college 11 years ago) and Alex (hired earlier this year). Thanks to Annie and Alex working on bookkeeping duties full-time, Red Shoes accountants are able to “focus on the broader compliance aspects of our services” says Cooper.

“Accurate record-keeping is is the backbone of financial reporting, and the bookkeepers’ ability to maintain precise records ensures our accountants can prepare accurate financial statements and tax returns without unnecessary delays.”

Because bookkeepers are more involved in company accounts, they’re in a prime position to spot anything that doesn’t look right. As such, they can act like ‘early warning systems’, flagging up potential problems such as cashflow problems or late invoice payments to an accountant before these issues escalate.

Bookkeepers know exactly what’s going on with clients’ accounts

“Because bookkeepers are involved with clients’ day-to-day work and raw financial information, it gives them an opportunity to feel close to the client in terms of storytelling – they get to see what these highly successful businesses are spending money on,” says Harris. “Bookkeepers know so much about what’s coming in and going out of a company’s account, it’s almost like looking through their underwear drawer!”

Annie from Red Shoes Accounting works on clients’ books. “Our clients benefit from her expertise in maintaining precise records, which in turn, makes the accounting process faster and more accurate,” says Cooper. “It’s a win-win for both us and our clients. By entrusting their bookkeeping to us, clients can focus on growing their business, knowing their financials are in good hands.”

When it comes to preparing year-end accounts, the intel that bookkeepers gather from working with client accounts can be invaluable. “Because bookkeepers get to speak with clients more frequently than year-end accountants – who probably only do this once a year – they know exactly what’s going on with that business over the past year,” says Harris. “If one of our bookkeepers calls one of our accountants, they can give them the full story.”

Having an eagle-eyed view of accounts means bookkeepers can highlight issues that might need quick decisions. Harris gives the example of one striveX client (an OnlyFans creator) who wanted to claim breast augmentation as a business expense. “We needed to find out what the HMRC view was, plus if it could claim any tax efficiencies,” she says. “It wasn’t the kind of decision that could be parked somewhere and left for the year-end team. Because it was flagged at bookkeeping level, we could deal with it straight away.”

Bookkeepers are on the frontline of new accounting tech

Many accountancy firms find that bookkeepers are the most tech-savvy people in their workplaces and are whizzes on Xero, QuickBooks and Excel. Red Shoes Accounting’s Cooper notes that Annie is “our go-to expert for new tech in bookkeeping. She keeps our accountants informed about the latest software updates and advises on how these tools can save time and improve accuracy. She also offers advice and troubleshooting to clients with their bookkeeping software, a service they find invaluable.”

“As technology evolves, the role of the bookkeeper is becoming even more critical, moving from manual data entry to a more strategic position,” says Cooper. “Our bookkeepers are also embracing new tech such as Hubdoc [which captures data such as bills and invoices automatically] to help improve efficiency.”

The skills of bookkeepers are expected to be a natural fit for blockchain technology too.

Why I hire AAT-qualified bookkeepers

Cooper, Red Shoes Accounting: “The AAT qualification provides a robust foundation for aspiring bookkeepers. The Level 2 modules cover the essential technical knowledge, while Level 3 dives deeper into business structures, account preparation, VAT, and payroll. This comprehensive training means that when Annie prepares our clients’ books, she’s not just keeping records—she’s laying the groundwork for accurate, timely financial statements. It’s a crucial role that ensures we can provide top-notch service to our clients.”

Harris, striveX: “The AAT bookkeeping qualifications have some great modules which are useful in practice, such as on Excel and cloud accounting software. Some of our bookkeepers are able to take credit control processes they were taught in a textbook with AAT and implement them within our firm.”

“As somebody who has recruited 20 members of staff in four years, I know that as soon as I see AAT on somebody’s CV, they’ve done research into the best qualifications and have real dedication. If you’re hiring a driver, you wouldn’t hire them without knowing they’ve got a driving licence. It’s the same with AAT.”

Career progression for bookkeeping talent

“At striveX, there’s no disparity in income between our bookkeepers and accountants,” says Harris. “We encourage our accountants with bookkeeping qualifications to put AATQB as well as MAAT after their names. We want to set the tone that bookkeeping has no difference in earning potential than being a fully qualified accountant.”

Finally, is bookkeeping boring?

“No!” says Harris. “Bookkeeping is the juiciest part of accounting. If you are curious about other people and love building relationships with people, it’s a great way to see why some businesses are outperforming others.”

AAT’s bookkeeping courses

AAT Level 1 Award in Bookkeeping: gives a solid grounding if you have no experience as a bookkeeper.

AAT Level 2 Certificate in Bookkeeping: for skills and essential knowledge up to trial balance standard.

AAT Level 3 Certificate in Bookkeeping: for experienced bookkeepers to embellish their skills.

More info on costs and requirements here. 

Christian Koch is an award-winning journalist/editor who has written for the Evening Standard, Sunday Times, Guardian, Telegraph, The Independent, Q, The Face and Metro. He's also written about business for Accounting Technician, 20 and Director, where he is contributing editor.