What does a bookkeeper do?


26th May, 2021

What does a bookkeeper do? Your questions answered

A good bookkeeper is a huge asset to any business.

Bookkeepers are the experts on keeping financial records – that you don’t have the time or the expertise to do thoroughly – for your business.

They have the knowledge and experience on how to accurately manage your business’s financial records. They can also provide insight into potential financial issues in the business.

READ: Basics of bookkeeping for the new business owner

But what do bookkeepers do on a regular basis? If you’re looking to hire a bookkeeper, here are the seven things they can do to start helping you and your business succeed.

What do bookkeepers do on a regular basis?

1. Data entry

Your bookkeeper will manage all your financial transactions by entering them into the system regularly and accurately, allocating them to the correct accounts in your accounting software, and producing weekly or monthly reports that provide useful information on your business performance.

2. Expense tracking

All of your business expenses need to be recorded and reconciled to any purchase orders and receipts of delivery to ensure you are getting what you paid for.

Your bookkeeper will carry out this role as well as enter any petty cash and credit card purchases into your accounting system.

They can also monitor who is spending what and identify any potential excess expenditure.

3. Invoicing and receipts management

A key cash flow driver of every small business is collecting money from customers.

A good bookkeeper will ensure invoices are sent promptly, follow up on late payments and manage all cash coming into the business. This role can often be the make or break of a small business.

4. Payroll processing

If you employ staff, payroll can become a large task. Paying your staff can involve checking timesheets, allocating any commission payable, calculating payroll tax and superannuation, and keeping accurate employee records including their bank account details.

Of course, then the payroll needs to be processed through both the accounting system and the bank account.

Having a bookkeeper will save you an enormous amount of time if your payroll is done weekly or fortnightly.

READ: Getting payroll set up for your first hire

5. Banking

Most online accounting software packages now link directly to business bank accounts.

Your bookkeeper can download banking information directly into your accounting system and allocate payments and receipts into the system.

Reconciling the bank transactions to your accounting system is important because you need to make sure all transactions are accounted for.

6. Compliance

Your bookkeeper should be a registered BAS agent, which means that they can prepare your BAS in line with the ATO requirements.

They will also be able to prepare any payroll tax and superannuation records and payments.

If you have any business loans or other areas that require regular reports they will be able to do this as well.

7. Financial reporting

Finally, your bookkeeper will provide regular financial reports: profit and loss, balance sheet, budgets and cash flow forecasts that will give you all the information you need to improve the financial performance of your business.

They will be able to guide you on what areas need improving, and those that are performing well that can be taken to the next level.

READ: Six things to look for in a bookkeeper

If you don’t have MYOB online accounting software, there’s an online accounting solution for every stage of your business. A good bookkeeper is an asset, and you should view any cost associated with your bookkeeper as an investment in your business.