What are the duties of a bookkeeper?
Bookkeepers are accountable for the upkeep of an organization’s most important accounting documents, which are referred to as ledgers.
Transactions such as revenue and outgoings need to be recorded and then posted to the appropriate accounts as part of the day-to-day activity.
Because being a bookkeeper is such a vast and varied responsibility, the job description for the position should emphasise the importance of having great time management and organisational skills.
It is possible to use this position as a stepping stone to move into a more senior or specialised accounting career because it provides exposure to many different parts of the accounting function.
What is a Bookkeeper?
A Bookkeeper is the person in charge of recording and managing a company’s financial activities, such as purchases, expenses, sales revenue, invoices, and payments.
This responsibility falls under the purview of an accounting department.
The bookkeeper is responsible for entering the company’s financial data into the general ledgers, which are then utilised in the process of producing the balance sheet and the income statement.
In most businesses, the bookkeeper is the one who is in charge of supervising the first six phases of the accounting cycle, while the accountant is the one who is typically in charge of handling the latter two processes.
In spite of the fact that the two careers share a lot of similarities, there are a few key differences that will be covered in the next sections of this essay.
What does a Bookkeeper do?
The act of documenting and processing financial transactions, as well as the production of statements, are all vital services that a bookkeeper offers to firms.
Some bookkeepers are responsible for managing the general ledger, which is a record of all of the financial transactions that occur inside an organisation.
Others, on the other hand, work as accounting clerks and are responsible for a variety of tasks while contributing to a group effort.
They are responsible for checking receipts, preparing bank deposits, sending payments, and monitoring accounts that are past due. Bookkeepers are frequently expected to fulfil additional responsibilities, including the compilation and submission of business activity statements (BAS).
But what exactly do bookkeepers perform on a daily basis? If you’re thinking about hiring a bookkeeper, here are several ways that person can immediately begin contributing to the success of both you and your company.
Your bookkeeper will be in charge of managing all of your financial transactions, which includes entering them into the system in a timely and accurate manner, assigning them to the appropriate accounts in your accounting software, and generating weekly or monthly reports that provide helpful information on the performance of your business.
To verify that you are receiving the goods for which you have paid, it is imperative that each and every one of your company’s expenditures be recorded and then compared to any purchase orders and confirmations of delivery.
This function will be handled by your bookkeeper, who will also be responsible for entering any credit card and petty cash transactions into your accounting system.
They are also able to keep track of who is spending what and identify any possible instances of wasteful spending.
Struggling to keep up with your bookkeeping? We’re here to help. Bookkept are qualified accountants and business advisors who can take care of all your accounting and business advisory needs, so you can focus on what you’re good at – running your business.
Invoicing and receipts management
The process of collecting money owed by customers is an essential cash flow driver for any small firm.
A competent bookkeeper will see to it that invoices are paid out on time, will keep track of overdue payments, and will manage all cash that comes into the company. This function can frequently determine the success or failure of a small company.
If you have employees, handling payroll can quickly become a time-consuming chore.
When it comes time to pay your employees, you may need to check their timesheets, assign any commissions that are due, calculate payroll tax and superannuation, and maintain proper employee records, including the details of their bank accounts.
Afterwards, the payroll will, without a doubt, have to be handled through the accounting system as well as the bank account.
If you handle your payroll once a week or twice a month, you will find that hiring a bookkeeper will save you a significant amount of time.
These days, the vast majority of internet accounting software solutions link directly to corporate bank accounts.
Your bookkeeper has the ability to instantly download banking information into your accounting system, where it may then be used to record payments and receipts.
It is essential to ensure that all of your business’s financial dealings are properly recorded, and the best way to do this is to reconcile your bank transactions with your accounting software.
Your bookkeeper has to be a registered BAS Agent, which indicates that they are able to produce your BAS in accordance with the rules established by the ATO.
They will also be able to handle the preparation of any documents and payments pertaining to payroll taxes and superannuation.
They will be able to accomplish this for you if you have any business loans or any other sections of your financial situation that demand regular reports.
Finally, your bookkeeper will offer you with regular financial reports such as profit and loss statements, balance sheets, budgets, and cash flow forecasts.
These reports will give you all of the information that you require to optimise the financial performance of your company.
They will be able to direct you towards the areas that require improvement as well as those that are doing well and have the potential to be elevated to the next level.
Bookkeepers are responsible for keeping a record of all incoming and outgoing transactions involving money, property, and other financial assets.
The most essential responsibilities of a bookkeeper are to meticulously record and examine all of the company’s financial information.
If you want to be successful in this position, you have to pay careful attention to the specifics and be quite precise when collecting numerical data.
Your line of work will also require you to uphold high moral standards and protect the privacy of a customer’s financial information at all times.
These days, the majority of bookkeepers use computers to manage financial information such as payroll for their employees.
Because of this, you might need to become proficient in the usage of databases, spreadsheets, or other specialised computer tools.
Reports on financial transactions are also written or printed by bookkeepers. Some bookkeepers are responsible for making bank deposits, tracking purchasing, submitting bills for a client’s accounts receivables, and preparing tax files for both federal and local authorities.
Responsibilities of a bookkeeper
Bookkeepers are tasked with the responsibility of delivering precise and up-to-date financial information regarding an organisation. They are always monitoring the temperature of a company.
The majority of the time, their findings are sent to the owners and managers of the companies so that they may assist them in decision-making. However, some bookkeepers are genuinely involved in the process of formulating business strategies.
It’s possible that bookkeepers and accountants will collaborate on specific projects from time to time, such as the compilation of yearly financial reports and tax returns.
The two most fundamental aspects of bookkeeping for a small firm are the entering of data and the reconciliation of bank accounts. If you don’t have these, you won’t be able to complete any of the other bookkeeping chores. Let’s go over the fundamental responsibilities, the most common additional responsibilities, and the more complicated bookkeeping tasks.
Monitoring the comings and goings of money and checking to see that the books are in the black and white.
A method for ensuring that the books are accurate by comparing the entries in the books to other source papers and bank statements as well as other documents.
A brief summary of the state that the company’s finances are in at the moment.
Accounts receivable (and credit control)
Creating and sending out invoices, as well as following up to ensure that the bills are paid after they have been sent out.
Ensuring that all of the invoices that are supplied by suppliers are paid on time and that there are no mistakes in them.
Calculating wages and any deductions that are relevant.
Putting together tax returns and other paperwork.
End of year reporting
In addition to providing guidance on how the company’s operations might be improved, developing financial plans and projections is one of the responsibilities.
Performing in-depth analysis, research, and implementation of software solutions and internal controls with the goal of boosting the effectiveness of the business’s operations and the company’s overall performance.
Analysing, researching, and putting into action software solutions and internal controls to improve the efficiency of the company’s operations and its overall performance.
Working with the team to teach them the best bookkeeping practises and how to use the software options available.
Offering a complete virtual office, including telephones, a postal address, and electronic mail communications, among other services.
Having discussions on finances and tax issues on behalf of their clients with their respective accountants. Representing the client’s interests before the relevant tax authorities.
The majority of businesses prefer to hire bookkeepers who have degrees in addition to their high school diplomas.
You should have completed some post-secondary math programmes and some basic accounting studies before applying for this position. On the other hand, if all you have is a high school education, you might be able to get work as a bookkeeper.
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When you first begin working as a bookkeeper, you will frequently be given the opportunity to participate in on-the-job training in addition to the education you have already obtained. This training can involve the processes and methods that are utilised internally by your employer.
To be eligible for certification as a bookkeeper, you need to have a minimum of two years of experience in the field.
If you pass the exam administered by the American Institute of Professional Bookkeepers, it demonstrates that you have mastered the general information as well as the specialised abilities necessary to conduct critical bookkeeping duties.
Some people are able to get their first job in bookkeeping with only a high school diploma, and they learn everything else they need to know on the job. On the other hand, obtaining additional education is quite helpful. It is not necessary to have a degree. The majority of bookkeeping qualifications consist of either a diploma or a certificate.
How to Become a Bookkeeper
To become a professional bookkeeper, you will need to complete the necessary training and get certified. It is also a good idea to check out the requirements that need to be met in order to start a bookkeeping firm with the local government. For example, if you want to provide BAS and GST services, the local government would want you to be a registered BAS agent.
Bookkeepers are accountable for the upkeep of a business or company’s financial records, the monitoring of transactions, the updating of statements, and the verification of accuracy. In addition, bookkeepers are tasked with the production of financial statements and other reports for management and other supervisors.
Bookkeepers record the information that may be found on receipts, invoices, and bills through the use of accounting software, spreadsheets, and databases in order to make reports and compile statistics.
They will also frequently be assigned extra responsibilities, such as purchasing, payroll, and invoicing, and they may be required to deal with customers on occasion.
Do things like spreadsheets, databases, and numbers calm you down? Do you find that following rules and procedures gives you a sense of accomplishment? If you want to become a bookkeeper, follow these steps.
Step 1: Complete a certificate course
The completion of a bookkeeping or accounting course leading to a certificate of completion level IV or higher is the initial requirement for becoming a bookkeeper.
You will learn how to manage records, interact with several accounting systems, and produce reports through the course of this. In order to submit an application for BAS Agent registration, it is also advised that you complete the GST and BAS units that are included in the certificate courses.
A Certificate IV programme will teach you the core skills need to begin working as a bookkeeper, including the following skills and more:
- Establishing and maintaining payroll systems
- Administering ledgers and accounts
- Completing BAS and instalment activity statements
- Preparing financial reports
- Processing financial transactions
- Working effectively in the industry
- There are a variety of options to become certified as a bookkeeper in Australia.
Face-to-face instruction for the full Nationally Recognized Certificate IV in Accounting and Bookkeeping is provided by Wiseclick Training and lasts for a total of twelve months, consisting of six months of one day a week of class time.
Alternatively, students can choose to take the course online and complete it at their own pace and in their own time. Check out the various alternatives we have for short courses here, including accounting.
Step 2: Gain work experience
You will be able to apply for bookkeeping employment once you have got your Certificate IV certification since you will have the fundamental skills necessary, but you will not be able to do tasks connected to BAS until you have obtained further qualifications.
You will be required to complete 1400 hours of relevant work experience in order to legally prepare and lodge Business Activity Statements.
Therefore, you should start knocking on doors to find a registered BAS Agent that you can learn from, either as a volunteer, an intern, or an entry-level bookkeeper.
You’ve earned a Certificate IV, therefore you should be proud of yourself!
You have reached the point in your education when you are prepared to obtain practical experience in the real world by working in an accounting firm or consulting firm.
After you have finished your studies, you can put yourself forwards for work experience in a few different ways, including the following:
- Update your CV ready to send out
- Sign with a temp agency as many temp bookkeepers end up employed full time
- Use personal networks or LinkedIn to find opportunities
- Apply through job sites
- Look on the careers page of companies you might like to work for
If you have a Certificate IV and come across as friendly, you will almost certainly get employment with a reputable business very fast. Working on BAS and other tax-related chores might be a good way to start levelling up your profession once you have gained the necessary experience.
Step 3: Register as a BAS Agent
You are now eligible to submit an application to the Tax Practitioners Board in order to become a registered BAS Agent given that you have the expertise and knowledge necessary to establish your familiarity with GST and BAS procedures. A qualification as a BAS Agent will significantly boost your employment chances, despite the fact that it is not required for a profession as a Bookkeeper.
It is expected that a large number of bookkeepers will be engaged in order to keep track of the money, which will ultimately lead to the preparation of a Business Activity Statement (BAS), which is the report that every business is required to file with the Tax Office.
The good news is that if you have a Certificate IV in Accounting and Bookkeeping, you are qualified to become a registered BAS agent. [Certificate IV in Accounting and Bookkeeping] You can submit your application for registration with the Tax Practitioners Board directly through their website; this link will provide you with all of the information that you require.
After passing the exam, you will be recognised as a Nationally Registered BAS Agent.
Your career prospects will increase, and the types of work you do will become more varied, after you become a certified BAS agent.
However, having this skill is not required in order to become a bookkeeper.
Bookkeepers who are searching for a career step-change often find that becoming registered as a BAS agent gives them with the new challenge they are looking for in their work.
Step 4: Get your insurance
After you have completed the necessary training and have been accepted into the BAS Agent programme, you will be expected to adhere to a code of professional conduct.
You are required to maintain a particular level of Professional Indemnity (PI) Insurance as part of this code’s enforcement of certain duties, one of which is the requirement that you do so.
This insurance protects bookkeepers against financial damages that may be incurred by their clients as a result of errors or negligence on the part of the bookkeeper.
Skills for Success
To be successful in the role of bookkeeper, you need to be thorough, meticulous, and have good attention to detail.
You will need to be very good at finding solutions to problems, have a mind that is analytical and organised, and have a natural passion for numbers and mathematics.
It is recommended that a bookkeeper have some technical competence and be proficient with at least the fundamental usage of computers, particularly spreadsheets and databases.
This is due to the fact that the majority of accounting work is now completed digitally.
Bookkeepers that are successful have the traits of patience and diligence, and they are dedicated to correctness and precision.
Skills & Attributes
People who take pleasure in dealing with numbers and being meticulous in their approach to their work tend to gravitate into the profession of bookkeeping, which is why a good number of those who work as freelance bookkeepers or own accounting businesses find themselves drawn to it.
Solid computer abilities and the capacity to adapt to new software applications and internet platforms, as well as an analytical mind and excellent problem-solving skills, are absolute necessities for this role.
Because “keeping books” is no longer a common practise, and because the majority of a bookkeeper’s job now takes place on a computer, you will need to be familiar with using spreadsheets and databases in order to be successful in this field.
- Methodical work habits
- Meticulous attention to detail
- Numerical fluency
- Excellent organisational skills
- Technical ability
- Good problem-solving skills
Bookkeepers are currently employed in a wide variety of businesses.
In 2016, the accounting and finance sector was responsible for 12% of the total number of bookkeepers. The majority of these positions were within payroll and general accounting, as well as tax preparation services.
The second largest category, which comprised around 10 percent of the workforce, was employed in retail services.
The healthcare industry, wholesale trade, and insurance were the other industries that employed bookkeepers at a rate of less than 10 percent apiece.
Bookkeepers may also choose to operate their businesses on their own as freelancers or as sole proprietors.
What do you need to set up your own bookkeeping business?
A combination of education, certification, and a thorough understanding of how to use the tools of the trade is a solid foundation that can help you get to the point where you are ready to launch your own company.
And the majority of customers are going to want to see evidence that you have some experience, such as testimonials from other business owners who are similar to themselves.
In addition to this, a healthy motivation for beginning a bookkeeping firm is the aspiration to aid others in the successful operation of their companies.
You are not need to have accounting qualifications, but having some level of knowledge of the subject is not going to hurt, especially if you are the messenger between the business owner and their accountant most of the time.
Job Growth Trend
Through the year 2026, there is not expected to be any expansion in the demand for bookkeepers.
It is anticipated that most new positions will be created as a result of persons retiring or upgrading their careers in accounting.
The increasing prevalence of automated technology is one of the primary contributors to the shrinking job market for bookkeepers.
Because to the lack of growth, there will be a nett loss of 25,000 jobs for bookkeepers by the year 2026.
People who have a passion for order, balance, and numbers may find that bookkeeping is an interesting and rewarding profession that opens doors all around Australia.
Bookkeepers are employed in companies all across Australia, and their primary responsibilities include monitoring the flow of money into and out of the company, ensuring that employees and invoices are paid on time, and maintaining accurate and up-to-date financial records.
Are you interested in furthering your profession by taking a bookkeeping class?
This convenient and detailed step-by-step guide to becoming a bookkeeper in Australia has been produced by us so that you may get started right away.
What kind of pay can one expect to make working as a bookkeeper in Australia?
The annual income for a bookkeeper in Australia is around $53,584, although this amount is simply an indicator because it was derived from Payscale.
The salary might vary greatly depending on the bookkeeper’s qualifications and experience.
Bookkeepers are crucial to the success of any enterprise.
A crucial part of the accounting process for a company is the collecting and entry of data, and a bookkeeper is responsible for fulfilling this function.
The recorded financial data can provide useful and actionable insight when there is a solid system in place that prevents problems such as skimming fraud.
A Bookkeeper is the person in charge of recording and managing a company’s financial activities.
They are also responsible for producing the balance sheet and income statement.
The job description for the position should emphasise the importance of having great time management and organisational skills.
Hiring a bookkeeper will save you significant amounts of time. They will be in charge of managing all of your financial transactions.
Bookkeepers are tasked with delivering precise and up-to-date financial information regarding an organisation.
They are responsible for keeping a record of all incoming and outgoing transactions involving money, property, and other financial assets. These days, the majority of bookkeepers use computers to manage financial information such as payroll for their employees. Job Description: Bookkeeper for a small firm. Responsibilities include entering data and reconciliation of bank accounts.
The majority of businesses prefer bookkeepers who have degrees in addition to high school diplomas.
Qualification: Post-secondary math programme and basic accounting studies are required.
Bookkeepers are accountable for the upkeep of a business or company’s financial records. They record the information that may be found on receipts, invoices, and bills through the use of accounting software.
If you want to become a bookkeeper, you will need to complete training and certification.
A Certificate IV course will teach you the core skills needed to begin working as a bookkeeper. You will learn how to manage records, interact with several accounting systems, and produce reports.
There are a variety of options to become certified in bookkeeping in Australia.
If you have a Certificate IV in Accounting and Bookkeeping, you are qualified to become a registered BAS agent. A qualification as a BAS Agent will significantly boost your employment chances.
After passing the exam, you will be recognised as a Nationally Registered BAS Agent. Bookkeepers are currently employed in a wide variety of businesses. In 2016, the accounting and finance sector was responsible for 12% of the total number of bookkeepers.
Bookkeepers may also choose to operate their businesses on their own as freelancers or as sole proprietors.
A bookkeeper’s primary responsibilities include monitoring the flow of money into and out of the company, ensuring that employees and invoices are paid on time, and maintaining accurate and up-to-date financial records. Average annual income for a bookkeeper in Australia is around $53,584.