There are two answers to this question.

One answer is the GAAP rules for accounting. The other answer is the responsibilities of most bookkeepers, in regards to the things they normally handle in keeping the books.

GAAP stands for Generally Accepted Accounting Procedures. This is the way that Bookkeepers and Accountants do the different functions of their job. GAAP requires that Bookkeepers use Double Entry Accrual method of accounting. It also requires things like, our integrity, client confidentiality, and warning clients of potentially illegal activity going on in the business. GAAP is mainly used by USA based financial professionals. Other countries have their own set of rules.

The standard responsibilities of Bookkeepers and Accountants are as follows; General Ledger reconciliation and upkeep, Accounts payable and receivable reconciliation and up keep, all bank accounts reconciliation and upkeep, and basic running of reports.

General Ledger is what all the different accounts are called that make up a companies financial records. The general ledger contains accounts like your bank accounts, accounts payable and receivable, it also contains accounts like expenses, and inventory, and any type of information on how money is moving into and out of your business.

Accounts payable is money your business owes to other people or businesses and the Government. It often can also be called liabilities, Its an outside company saying we trust you to pay your bill later.

Accounts receivable is money that is owed to your business from people and businesses outside of your business. Its like a store or business giving its clients credit to purchase from your company saying you can pay us later.