A bookkeeper keeps the financial transaction records for the business. A simple form of bookkeeping, for example, is that needed by a driving instructor. He or she has income coming in from the people taking lessons and then has expenses such as petrol, car insurance, the cost of maintaining the car and perhaps phone bills and advertising.
The recording of all these transactions – whether the money comes in or out through cash or the bank – is bookkeeping. The person who does this recording on a regular basis is called a bookkeeper. In the example above the driving instructor themselves may do their own bookkeeping if they have the time and the desire to learn how to do this.
The larger the business the more financial transactions it may have to record. It may have staff and therefore payroll would be needed. They may be VAT registered in which case VAT returns will need to be prepared and submitted to HMRC. Each business will potentially have different requirements, but it is the job of the bookkeeper to record all the financial transactions.