Are you interested in becoming a bookkeeper but have no experience?

Coming up with a concept and beginning a new firm can happen in the blink of an eye for entrepreneurs. When money starts flowing out the door for expenses like office rent, internet fees, paying workers or contractors, and revenue starts flowing in, remaining up to date and compliant with the ATO becomes a struggle.

A very tiny business might be able to get by with spreadsheets or free online accounting software, but based on my experience dealing with a number of startups, there are some distinct differences between those that fail and those that survive year one.

Setting up your own business is exciting and demanding, and it should provide you with the rewards and control you desire. However, if you want your business to be prosperous, you must get the accounting right. That begins with ensuring that the books are properly set up.

What are some of the basic tips to bookkeeping?

Educate yourself on bookkeeping

If you intend to do it yourself, you must first educate yourself. Find an accounting course or hire someone who knows what they’re doing to train you. Understand the basics of bookkeeping.

Bookkeeping is the process of organising, recording and reporting on the financial transactions of your business. This involves several different processes:

  • Keeping track of daily transactions.
  • Sending out invoices and managing accounts receivable, including chasing late payments.
  • Managing accounts payable, including payment of supplier invoices, expenses and petty cash.
  • Maintaining the balance of income to expenses, to ensure the business doesn’t run out of day-to-day money.
  • Make sure the books are valid and up to date whenever the accountant needs them.

Good bookkeeping will keep your business running smoothly day to day and will make your accountant’s job a lot easier.

Get the right software

Choose the best online accounting software. A complete accounting solution that can handle all of your invoicing, tracking spending, attaching key papers like receipts, and BAS preparation can cost as little as $29 per month.

Choose a piece of accounting software that not only satisfies the needs of your business but also provides all of the features you require. It’s possible that you’ll need to try out some of the other things in your inventory or seek guidance from your accountant. You shouldn’t just go with the first product that comes your way or the one that has the most bells and whistles available; rather, you should make certain that the product fulfils the requirements your company has for it.

Prepare your BAS correctly 


Correctly prepare your BAS. You will save both time and money by doing so. Don’t assume that each of your income and cost transactions has the correct tax code associated with it.

Run detailed general ledger reports to ensure everything is in order before lodging with the ATO, and set up matching rules when importing your bank transactions to save time.

A certified BAS Agent is the recognized statutory word for a Certified Bookkeeper in Australia.

Set aside time to review your accounts regularly 

Every week, set aside one day/morning to conduct your bookkeeping. Regularly performing the activity keeps the task reasonable and allows you to see abnormalities such as unpaid bills and slow-paying customers. Each month, set aside time to evaluate your profit and loss statements, balance sheet, and cash flow. It’s a terrific method to stay on top of how you’re doing, and it’ll also point out any flaws with your bookkeeping that you can have fixed right away.

Every month, reconcile to the bank account. You must verify that the bank balance in your bookkeeping system corresponds to the bank statement. This procedure is critical because it not only assures proper record-keeping, but it also ensures that all errors are corrected on a regular basis. Also, don’t rely just on bank feeds for bank reconciliation because they aren’t always accurate. At least once a month, do a bank reconciliation to the real bank statement.

Hire a competent accountant to assist you in correctly establishing your company from the outset.

They will assist with things such as business structure, acquiring an ABN, registering for GST (if it is essential), setting up payroll, BAS and tax lodgements, and so on. Visit your accountant on a regular basis; don’t put off seeking advice until the end of the fiscal year; visits at the end of the quarter are far more beneficial because you can notice difficulties early on and avoid unpleasant surprises later on.

Ensure that your chart of accounts is correctly set up. Talk to your tax preparer or accountant, if you have one. If all you do is follow your own instincts regarding what should be done, your accountant will charge you extra money to make any necessary adjustments at the end of the year.

Keep your personal and business finances separate. Never combine your personal finances with the finances of your business in the same bank account. If you do that, your accounting will become extremely difficult to handle since it will get unorganised. Your bookkeeping and/or accounting fees will almost probably treble as a result of this situation due to the significant amount of additional time that will be required for your accounting professional to process your accounts. Always be sure to keep a personal savings account and credit cards for your personal expenses, and make sure to open a corporate bank account for your business.

Utilise Receipt Bank or a comparable software to keep records.

According to the ATO’s recommendations, all data must be kept for a period of at least 5 years (or sometimes longer). The information accumulated over a period of five years can rapidly become overwhelming, and you may find that you need to retain dozens of boxes of records. It is strongly recommended that you move your data online to an application such as Receipt Bank. Programs like Receipt Bank will do the majority of the work for you, which means you won’t just save money on storage space but also on the amount of time you spend inputting data.

Avoid using paper.

Go paperless. 

In terms of bookkeeping and record-keeping, we adhere to the belief that going paperless is the way to go, which is related to the remark that was said before. You will not only free up a significant amount of physical space in your business, but you will also have access to an electronic filing cabinet that is not only incredibly simple to search but can also be accessed from any location and on any device. For this particular activity, the cloud storage tools Google Drive and Dropbox are our top recommendations.

Avoid over-categorising.

Do not get too bogged down in the specifics of bookkeeping, such as classifying staplers, printer ink, and coffee as “office things.” There is no need to create separate accounts for each item, etc., therefore there is no reason to get bogged down in the specifics of bookkeeping. At the same time, try to avoid overly specific classifications. When you put different kinds of spending in accounts with names like “general,” “sundry,” and/or “miscellaneous,” your accountant will have a lot of trouble keeping track of everything. This will prohibit you from producing company reports that are accurate and helpful to others.

Keep track of all business spending.

Maintain an accurate record of all of your company’s expenditures, including those that were not paid through the business bank account, such as cash spent for postage. Mark them down in your drawing account (if you’re a lone trader) or loan account if you want to keep track of them (for companies or other). Keep in mind that in order to qualify for that tax deduction, you need to disclose each and every expense.

Enter deposits accurately.

If, by mistake, you declare loan repayments, personal cash injections, and bank transfers as income, then your whole income will be inflated to reflect the incorrect amount. Because of this, it is possible that you will inadvertently pay a higher tax rate.

Pay your bills promptly.

Should you fail to do so, it will have a negative impact on both the reputation and credit rating of your organisation. Include this procedure in the weekly bookkeeping routine that you perform.

In addition, you should set aside money for your taxes. Being a business owner comes with the inevitable responsibility of paying taxes and providing perks to employees. It is easy to go about your business without budgeting for these expenses, and then when they come due, you are in a panic because you do not have the resources to cover your liabilities. It is easy to go about your business without budgeting for these expenses. The opening of a second bank account and making consistent transfers of money from the primary business account to the new account is a more effective technique. Having money stashed up for unexpected costs like these is not only the smarter thing to do, but it also helps with cash flow.

What qualifications are needed to become a certified bookkeeper in Australia and provide bookkeeping services to clients? 

Becoming a bookkeeper is a reasonably simple procedure, and the required certification (FNS40217 – Certificate IV in Accounting and Bookkeeping) can be accomplished in as little as six months (Full-time study). Some people start out in bookkeeping with only a high school diploma and learn everything else on the job. However, it is unquestionably beneficial to pursue further education. A college diploma is not required. The majority of bookkeeping credentials are at the diploma or certificate level.

Steps to Become a Certified Bookkeeper


  • Determine your company’s identity and trade name (may trade under your name initially) – Develop a business plan
  • Register your business name with ASIC.
  • Apply for an ABN and GST. – GST Registration and ABN Essentials
  • Consider a business structure (Company either with or without a discretionary trust)
  • Understand and evaluate the ATO’s perspective on starting a new business – ATO new business checklist
  • ATO GST Checklist for Small Businesses – ATO GST Checklist for Small Businesses
  • Make a charging policy decision (Result based or time-based) – Calculators for Charge Rates


  • Start by reading books like Bookkeeping for Dummies and Bookkeeping Education Reference Material.
  • Decide the software platforms you’ll use and become familiar with – MYOB, Xero, Reckon, Saasu, etc.
  • Get some preliminary training from software businesses (see above)
  • Get your Certificate IV in Accounting (including the BAS Agent skill set)
  • Obtain ICB Student Membership (ICB Student Membership) from your ICB Certificate IV Accredited Training Provider or RTO.
  • ICB’s Practical Bookkeeping Assessments will certify you.

Commencing Business (May Occur While the Above Takes Place)

  • Register your company (see above)
  • Obtain Professional Indemnity Insurance (PI).
  • Apply for ICB Membership at the appropriate level – see the ICB Membership Levels page for more information. Apply for ICB membership online.
  • Obtain an ICB Practising Certificate after gaining at least one year of bookkeeping experience.
  • If you offer a BAS service, you must first register as a BAS Agent. What does a BAS Service entail, and what can a bookkeeper accomplish? What is the role of a BAS Agent?
  • Understand and think about ICB’s “How to Engage with a Client.”

Maintaining Certification

  • Maintain the registrations and insurance listed above.
  • Each year, complete the mandatory CPE (Continuing Professional Education).
  • Participate in the ICB Annual Skill Review.

How do you become a certified bookkeeper if you’re working full time or part-time? 

Part-time, online, and accelerated learning options are available depending on whether you plan to take this Cert IV course at a TAFE or a Registered Training Organisation (RTO). For authorized bookkeeping courses Cert IV and below, VET Student Loans are no longer available, but you may be eligible for Austudy or a Pensioner Education Supplement.

This training does not qualify you to work as a BAS Agent. To become a Registered BAS Agent, you must complete CPE in bookkeeping (1400 hours of relevant experience) and go through the TPB’s formal application process. The Australian Bookkeepers Network offers a specific service called ABN BAS, which acts as a supervising agent for rookie bookkeepers to help them earn hours of relevant experience. For members of the Australian Bookkeepers Association (ABA), this professional development for bookkeepers can be decreased to 1000 hours. You will enjoy complimentary ABA membership as an ABN member.

How do you become a bookkeeper from home?

It is possible to do bookkeeping from home.

You’re ready to take the next stages in starting your own bookkeeping business now that you have a solid foundation of knowledge, abilities, and experience. Those steps may not even get you past your front door for many.


  • No office space rent to pay means lower expenditures.
  • Provide extra value to clients by passing on savings.
  • Make the most of your time; you’ll spend less time commuting.
  • Take advantage of tax benefits by deducting your rent or mortgage payments.
  • Increase your flexibility to help you balance work and family life.


  • You’ll have to give up a room because home enterprises require specialized space.
  • Children and pets may intrude on your business, making it difficult to maintain boundaries.
  • Meetings are difficult to organize, and hosting a client meeting is even more difficult.
  • You might go insane because it’s the same four walls every day and night.
  • It’s easy to work all the time and never switch off.

What you need to do it

The internet, like any other job, allows bookkeepers to operate from home. A few online tools can help you service clients.

  • You can have face-to-face meetings even if you’re thousands of miles apart thanks to video conferencing.
  • Because not all clients are online all of the time, mobile is a must.
  • Laptop – Having a laptop that you may quickly transport to a client meeting is convenient.
  • When you’re in the workplace, having a second screen is quite beneficial.
  • Online bookkeeping software enables you to work on your accounts from any location.

How an online ledger works

You can use an online ledger to look at and work on a client’s finances from anywhere. The business books are available online, and you can access them from anywhere. If you like, you can both log in at the same time.

It means that anyone who has been given permission has rapid access to one source of truth.

Getting the data onto the ledger

An online ledger is, of course, only half of the solution. You need to get the data into it without having to visit the client on a regular basis. There are software solutions available for this as well. Accounting software can be linked to other corporate systems to retrieve sales and spending data automatically.

Taking advantage of home-based bookkeeping

Not only do internet systems allow you to work from home, but they also help you save a lot of money. You save money by not renting a commercial office space and by eliminating hours of data entry. As a result, you’ll be able to provide services for a fraction of the cost of your competitors. You may pass along part of those savings to your client while still increasing your profit margin.

What challenges will you experience in bookkeeping?

Here are some of the most common challenges small business owners face with bookkeeping:

  • Incorrect or late invoicing results in lost revenue and a negative customer experience.
  • Losing key receipts or failing to allocate them to the proper expenditure accounts, which could result in overpaying taxes or failing to substantiate the amount to the tax department.
  • Your BAS was incorrectly prepared. You will either pay the ATO too much or too little. Both will leave you out of money at some point in the future.
  • Time spent by you or an employee on record keeping, data input errors, and communicating with external organizations such as the ATO. Surely, you’d be better off spending your time selling your products or services.
  • Business loan accounts cannot be reconciled accurately. It’s really expensive if your accountant has to come in and figure out what’s right or wrong, or if you’re audited.
  • When you hire an outside bookkeeper or accountant to remedy your mistakes, you’re throwing money away when it could have been done right the first time.

Setting up your business is exciting and challenging, and will hopefully bring you the rewards you deserve, along with the autonomy you dream of. However, if your business is going to be profitable, it’s vital that you get the accounts right. That starts with making sure you set up the books correctly.

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