Bookkeeping Services
Bookkeeping is an essential part of running a business. If you want your business to flourish, you will need to ensure that your books and financials are in good shape.
If bookkeeping isn’t your strongest skillset, or if you simply just don’t have the time to do the books as well as everything that comes with running a business, hiring a bookkeeper is a great option.
A good bookkeeper can add a tremendous amount of value to your business by offering a range of services.
In this guide, we break down the role of a bookkeeper, the services they offer and how to find a good bookkeeper that you’ll want to hold onto for as long as your business is alive and kicking.
What is a bookkeeper?
The role of a bookkeeper is to organise and manage your accounts, transactions and financial statements. Bookkeepers can also streamline your financial affairs and records to make the back end of your business easier to manage - especially when it comes to preparing annual financial and tax reports.
Bookkeepers can help you focus on the day-to-day running of your business, maximise your tax claims and protect you from administrative errors that could potentially cost you a lot of money.
Your bookkeeper can also liaise with your accountant and tax agents on your behalf to implement the best systems, processes and tax strategies to get the best possible outcomes for your business.
What does a bookkeeper do?
Keeping the books is the primary role of a bookkeeper, but bookkeepers have a diverse skillset and can provide a range of other services depending on your business requirements.
The duties and responsibilities of a bookkeeper can include:
- Data entry
- Tracking sales, invoices, receipts, payments and purchases
- Designing, maintaining and reviewing internal business processes
- Recording financial data from the day-to-day running of your business in general ledgers
- Preparing financial reports
- Organising financial information in a way which accountants can easily use
- Accounts receivable
- Accounts payable
- Payroll
Some bookkeepers provide advanced services including:
- Preparing and filing tax returns
- Budgeting and forecasting
- End of year reporting (profit and loss statements and balance sheets)
- Liaison with accountants and tax agents
- Implementing software solutions to improve your business processing
Aside from these standard tasks, bookkeepers can also offer solutions to streamline the workflow of your business as well as train small businesses to effectively use accounting software.
What are the benefits of hiring a bookkeeper?
Here are just a handful of reasons why hiring a bookkeeper adds a significant amount of value to your business:
- Avoid tax penalties
- Create better budgets
- Focus on other areas of your business
- Save time
- Increase productivity
- Save money
When should I hire a bookkeeper?
A bookkeeper is usually one of the first people you hire when you start a business.
The sooner you acquire a bookkeeper, the less chance you’ll end up with months of invoices and transactions that have gone unrecorded. This will take time to sort through and could mean you need to spend more on bookkeeping services to rectify.
What are the different types of bookkeepers?
It’s helpful to know about the different types of bookkeepers:
- “Kitchen table” bookkeepers: Usually self-taught bookkeepers who do basic bookkeeping tasks like data entry and invoicing. They could be a family member or employee who helps you out.
- Independent bookkeepers: A one-person bookkeeping service. They could’ve left a big firm or opened up their own firm.
- In-house bookkeepers: A bookkeeper you employ to work in your business to do the full scope of bookkeeping duties.
- Virtual bookkeepers: A remote-based bookkeeper whom you engage with online. They complete all of their work using online cloud accounting software.
- Bookkeeping firms or practices: A firm or practice provides a full range of bookkeeping service packages from basic bookkeeping to financial advice.
What is the difference between a bookkeeper and an accountant?
There are a lot of crossovers between bookkeepers and accountants, but there are some tasks that bookkeepers aren’t equipped or qualified to do.
As a general rule of thumb, bookkeepers record the daily transactions and keep things organised and their role is more transactional.
Accountants, on the other hand, take the information prepared by a bookkeeper and analyse and interpret it to advise you on the best ways to push your business forward.
Accountants have to go through robust training and take exams to become certified accountants, whereas bookkeepers don’t require any training or qualifications (although there are various certifications many bookkeepers undergo).
Also note that an accountant is usually trained to have a deep knowledge of taxation laws which not all bookkeepers may possess. For example, if you would like your bookkeeper to lodge a tax return, you must ensure they are BAS certified.
Bookkeepers vs BAS agents: What is the difference?
All BAS agents are bookkeepers but not all bookkeepers are BAS agents.
BAS agents are registered and authorised to do more than general bookkeeping including lodging your BAS and IAS statements, doing payment summaries and giving advice on BAS provisions such as FBT, GST and PAYG installments.
A bookkeeper can also prepare and lodge your BAS, but only if they are an employee within your business.
If you outsource BAS services, only a registered BAS agent is authorised to do so.
Should I hire a bookkeeper or manage my own books?
Unless your business is tiny and you have very few transactions, it's better to hire a bookkeeper.
The reason why most businesses choose to outsource their bookkeeping is that bookkeepers have a thorough knowledge of the latest laws and regulations, which will save you time and money (and reduce your stress levels).
A bookkeeper can keep you out of trouble from the ATO and free up your time to do other things, rather than sifting through invoices, accounts payable and receivables.
What are the qualities of a good bookkeeper?
It goes without saying that you need to hire a bookkeeper that you can trust to manage the inner workings of your business finances.
Some of the qualities you should be looking for are professionals who are well-organised and credible. They should be excellent communicators who are honest and transparent about their abilities and the services they can offer.
How do I hire the best bookkeeper?
Consider these factors to help you find the right bookkeeper for your business.
- Your needs: Look at the software and systems you are using, how many transactions you make on a daily/weekly/monthly basis and whether you require regular meetings with your bookkeeper.
- Their qualifications: Bookkeepers should have relevant certifications (i.e. a Certificate IV in Bookkeeping). You might also want to look for certified bookkeepers who are part of recognised professional associations e.g. Australian Bookkeepers Association or the Institute of Certified Bookkeepers.
- Their work history: Find bookkeepers with good reviews and references. You could get recommendations from other small business owners.
- Their experience: They should have enough experience to handle your type of business and industry.
- Their tech knowledge: Nowadays, all bookkeeping services can be done on the cloud or on software and bookkeepers should be up to date with the latest technologies.
- Their geographical location: It’s better to hire a locally-based bookkeeper if possible. They don’t have to be in the same state, as all work and communication can be done virtually, but having bookkeepers nearby may make communication easier and regulatory compliance easier.
- Cost: Don’t simply choose the cheapest bookkeeper. Look at the overall value that a bookkeeper can add to your business.
You may also want to consider accounting firms when hiring a bookkeeper, as having your accountant and bookkeeper under one roof could simplify things even further.
You can check out some of the top accounting firms in your area.
How much do bookkeepers charge?
The costs of hiring a bookkeeper can vary greatly depending on the bookkeeping services you need.
The average cost to hire a bookkeeper in Australia starts from around $50 - $80 per hour for basic bookkeeping. More advanced services start from around $80 per hour.
There are also flat fees/fixed rates for bookkeeping tasks like GST and BAS statements.
How do bookkeepers charge?
Depending on how you engage bookkeeping services, i.e whether you need ongoing or ad hoc services, bookkeepers can either charge an hourly, fixed rate or retainer fee.
- Hourly billing: You pay for the number of hours it takes a bookkeeper to complete a task.
- Fixed price/flat fee: You pay an upfront price for the bookkeeping service you need.
- Retainer fee: You pay a set fee for an agreed number of regular bookkeeping services.
In your initial consultation with a bookkeeper, they will discuss which fee structure is most suitable for the services you need.
How much do accountants charge for bookkeeping?
Accountants charge a similar fee for bookkeeping, starting from around $60 per hour.
What should I bring to a meeting with a bookkeeper?
When you have selected a bookkeeper, you will need to provide all of your records and information so that they can set up and maintain your files properly.
For privacy and security reasons these documents are typically stored on your premises. Your bookkeeper will have access to them in their working hours.
Master file documents:
- Incorporation document of business entity
- Opening trial balance
- Income tax return of last year
- Electronic bookkeeping files
Sales documents:
- Invoices issued to the clients/customers
- Details of advance payments received from
- Client/customer payroll
- Payroll details of employees
- Details of salary paid and calculation
Cash and bank documents:
- Cash receipts
- Cash payment book
- Bank statements
- Credit card statements
- Cheque stubs
- Invoices received for expenses incurred
- Receipts/invoices for the purchase of fixed assets
- Receipt of payment of taxes
Inventory documents:
- List of inventory items involved in business
- Other relevant transactions:
- Summary of any major event during the year
- Payments to shareholders
- Loan statement for loans taken from bank/ financial institution
- Details of withholding tax paid (If any)
- Returns filed with tax authorities
- Any correspondences with government authorities
Ready to hire a bookkeeper for your business?
Where can I find a bookkeeper?
Simply tell us your bookkeeping needs and we’ll introduce you to top bookkeepers in your local area.
Talk directly to professional bookkeepers and find out more about what they can do for your business.
