Australian Taxation Office
06-May-2021 By - team

Bookkeepers oversee a company’s financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, and daily financial entries and reconciliations. They perform daily accounting tasks such as monthly financial reporting, general ledger entries, and record payments and adjustments. Additionally, many bookkeepers also assist with basic HR duties like new hire documents, compliance, temporary disability insurance and workers’ compensation filings, making them an indispensable part of an organisation’s fiscal fitness.

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Bookkeeper

Use the following 2-3 sentences to introduce your company to prospective bookkeepers, highlighting your unique company culture and working environment. You have an opportunity to set your company apart from competing job listings and sell yourself to job seekers.

Bookkeeper Job Responsibilities:

  • Maintains records of financial transactions by establishing accounts, posting transactions; ensure legal requirements compliance.
  • Develops a system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.
  • Maintains subsidiary accounts by verifying, allocating, and posting transactions.
  • Balances subsidiary accounts by reconciling entries.
  • Maintains general ledger by transferring subsidiary account summaries.
  • Balances general ledger by preparing a trial balance; reconciling entries.
  • Maintains historical records by filing documents.
  • Prepares financial reports by collecting, analysing, and summarizing account information and trends.
  • Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports, advising management on needed actions.
  • Contributes to team effort by accomplishing related results as needed.

Work Hours & Benefits

Here is where you’ll want to include working hours and benefits specific to your open position. This is another chance to sell potential applicants on things like telecommuting, work-from-home options, or additional availability during tax season. Benefits that can set your firm apart, like paid vacation time, conference sponsorships, or child care reimbursements, can go right here.

Bookkeeper Qualifications / Skills:

  • Developing Standards
  • Analysing Information
  • Dealing with Complexity
  • Reporting Research Results
  • Data Entry Skills
  • Accounting
  • SFAS Rules
  • Attention to Detail
  • Confidentiality
  • Thoroughness

Education, Experience, and Licensing Requirements:

  • Bachelor’s degree in accounting, finance, or related field
  • CPA is a plus
  • Previous bookkeeping experience preferred
  • Experience in working with multiple legal entities under different legal umbrellas

Call to Action

 Now that prospective bookkeepers are familiar with your company and the job requirements, you need a call to action, so they know precisely how to apply. A well-crafted call to action turns interested job seekers into actual applicants, so let them know how to submit an application and resume or who to contact at your company to apply.

Get Help Hiring Your Next Bookkeeper

Take your search for a great bookkeeper to the next level with Monster job ads and our wide range of monthly plans. Plus, you’ll get access to our massive resume database with profiles for you to peruse, as well as MonsterSearch, our candidate engagement platform.

What Does a Bookkeeper Do? (Plus How to Find a Good One

Keeping complete and accurate financial records isn’t the most glamorous part of building a company, but you can’t have a solid business without them. It’s about more than just spreadsheets and software — sound bookkeeping is the foundation that equips you to make intelligent business decisions.

Many founders either don’t have the time or don’t have the expertise to do their bookkeeping. The right bookkeeping solution can save you valuable time and hassle without sacrificing your financial health.

In this article, we discuss what bookkeepers do and choose a good one for your business.

What Is a Bookkeeper?

Simply put, a bookkeeper is someone who manages and records all the financial goings-on of your business. They track financial transactions and ensure your accounts and records are accurate and complete.

The Benefits of Working with a Bookkeeper

Working with a professional bookkeeper offers myriad benefits for your business and finances. In a nutshell, it comes down to these four vitally essential services:

  1. Clear, accurate, and comprehensive financial records that are ready for investors or the ATO.
  2. A plain English translation of those records helps you better understand your financials and what they mean for your business.
  3. Less time spent on minutiae and spreadsheets, and more time building your business.
  4. Capable accounts payable and accounts receivable — so your cash flow is balanced and moving.

Can I Keep My Books?

If you’re financially minded and have a lot of free time on your hands, then yes, you probably can keep your books. But let’s be honest — your time and brainpower are better spent growing your business.

Using an experienced bookkeeping service means you’ll always be ready to produce your books if the ATO comes knocking. Plus, you’ll have a complete and accurate financial picture to provide investors. And that’s a great thing to have when you’re trying to convince them you’re serious about building your business.

I Use Accounting Software — Do I Need a Bookkeeper Too?

If you’re using QuickBooks, Wave, or other accounting software to send invoices, record transactions, and pay employees and contractors, you might wonder if you need a bookkeeper at all.

Here’s the thing: Accounting software captures information, but it doesn’t help you make sense of it. And even the best software can’t catch everything. QuickBooks entries often need to be categorised and amended by hand.

That’s one of the most valuable benefits of working with a bookkeeper. They keep your financial data in order so an accountant can make accurate strategic decisions.

What Do Bookkeepers Do?

The TL;DR version is that bookkeepers give you a monthly snapshot of your business’s finances.

The information they give you represents the bedrock of your company’s financial health. 

Bookkeepers ensure that data is accurate and comprehensive so that it can inform your financial decisions and strategy.

Bookkeepers handle these four primary duties:

1. Categorize All Transactions

A bookkeeper gathers all your transactions from payroll, expenses, payment processors (like Stripe or PayPal), and more. They also make sure every transaction is accounted for and categorised correctly.

2. Reconcile Your Bank Accounts

Between credit cards, banks, and other financial accounts, it’s easy for transactions to get lost, duplicated, or otherwise messed up. Part of a bookkeeper’s job is to reconcile all the trades for those accounts to ensure everything agrees.

They’ll make sure the balances in your accounting software match up with the actual proportions in your accounts and keep an eye on how all the money moves.

3. Prepare Key Financial Statements for Your Business

Every business needs critical financial statements regularly. Whether you’re showing them to potential investors, sending them to the IRS, or using them to make financial decisions. A bookkeeper will prepare those documents and ensure they’re based on accurate and complete information. Those critical statements include:

  • Income/Profit & Loss statement: The Income Statement lays out all of your revenues and expenses for the year.
  • Cash flow: Your cash flow statement shows how money moves into and out of your business.
  • Balance sheet: The balance sheet includes all of the assets, liabilities, and equity that exist in your business at a given time.

Plus a bonus, very-nice-to-have statement:

  • Burn reports: Burn reports show startups and other new companies how quickly they’re spending cash (often venture capital), so they can understand how long they can sustain operations.

4. Handle Bills and Invoices

On top of tracking and recording transactions, some bookkeepers will also manage your business’s bills and invoices. That often includes managing accounts payable and accounts receivable.

bookkeeping-tips

Bookkeepers vs. Accountants: How Are They Different?

Bookkeepers and accountants are frequently confused. Both deal with your financial info and records, after all.

There are two critical differences between bookkeepers and accountants:

  • Accountants are regulated. They have to be certified to become an accountant. Anyone can become a bookkeeper.
  • Bookkeepers manage information, while accountants interpret it.

Bookkeepers focus solely on maintaining accurate and complete financial data. Their job is to provide timely and digestible information to the decision-makers in a company.

On the other hand, accountants are more involved in using that information for broader strategic planning and interpreting your books. They make recommendations and craft financial strategy for the business (like putting together a budget).

Do Bookkeepers Do Taxes?

One of the biggest misconceptions about what bookkeepers do centre around taxes. The straight answer is, No: Bookkeepers are not certified to prepare or file your taxes. If you want someone to assist you at tax time, you should work with a Certified Public Accountant (CPA) or Enrolled Agent (EA) during tax season.

Choosing a Bookkeeper

We’re firm believers that every business needs a bookkeeping solution, but how you fill that gap depends heavily on balancing your bookkeeping needs and budget.

There are four options when it comes to bookkeeping solutions. Choosing the right bookkeeper for your business starts with deciding between those options. You can:

  1. Hire an in-house bookkeeper to work with your team full-time.
  2. Use bookkeeping software and fill in the gaps yourself.
  3. Hire a human-only bookkeeping firm.
  4. Use a hybrid service that combines human knowledge with the efficiency of automation.

The right option for you comes down to several considerations, including:

  • Your budget.
  • The tasks you need to be handled.
  • The size of your business.
  • Plans for growth: taking on funding, scaling, etc.

The ultimate goal is to find the most capable bookkeeping solution that can work for your business in the long run, not just today. That’s why it’s vital to weigh your options through the lens of those four considerations, so you can find the right bookkeeper for you — instead of jumping at the first Google search result.

What Makes a Good Bookkeeper?

 

Regardless of which bookkeeping solution you choose, there are a few things that every great bookkeeper should bring to the table. When weighing your options, indulge a heavy bias toward bookkeepers who are:

  • We are experienced and reliable.
  • Passionate about helping your business grow.
  • Able to translate your books, so they make sense to you.

A good bookkeeper lets you focus on building your business and arms you with the correct financial data to make those decisions. Insightful data that can help you grow, and grow better, is always worth investing in.

 

What Does a Bookkeeper Do?

Bookkeepers ensure that all of a company’s expenses, income, and transactions are recorded in the company’s books and reconcile its financial accounts, typically every month. Bookkeepers might also help with financial statement and financial report preparation. Although bookkeeping can be an in-house staff position, most businesses employ bookkeepers on 

a freelance basis.

Bookkeepers can wear many different hats depending on what a business needs. That said, most bookkeepers nowadays use business accounting software to do their work. Plus, there are a few things that almost every bookkeeper can take care of for your business. Though the role of a bookkeeper is multifaceted, there are some core tenets to what bookkeepers do.

If you’re wondering what a bookkeeper does, then chances are you’re probably also wondering if you need one. We’ll explain the tasks that a bookkeeper can take care of for you, the bookkeeper’s going rate, and where to find a good bookkeeper.

What Does a Bookkeeper Do?

 

There’s no one simple way to answer this question. Just like any other field of work, bookkeeping can look different from business to business. However, these are the most common tasks that bookkeepers tend to tackle:

  • Record financial transactions
  • Reconcile bank accounts
  • Manage bank feeds
  • Handle accounts receivable
  • Handle accounts payable
  • Work with your tax preparer and assist with tax compliance
  • Prepare financial statements
  • Take on some payroll and human resource functions
  • Make technology and process streamlining recommendations

Here’s a closer look at what a bookkeeper does:

Reconcile Your Bank Accounts

The most crucial task for any bookkeeper is to reconcile your financial accounts. Account reconciliation ensures that your accounting software’s transaction details match transaction details on your bank account statements, credit card statements, and other financial account statements.

It’s important to regularly reconcile your accounts to avoid overdraft fees, fraudulent charges, or incorrectly recorded transactions. Accounting software makes reconciliation pretty easy, but a human touch is still required to make sure all transactions are accurately recorded.

Manage Bank Feeds

Your bookkeeping service or bookkeeper should be managing the transactions brought in through your accounting system’s bank feed at a basic level. Bank feeds link your accounting software with your business bank account, allowing you to see each transaction in real-time.

Depending on how effective it is, the accounting software should be able to categorise certain transactions automatically. For example, a credit card transaction from an airline can be automatically classified as a travel expense. Bookkeepers keep an eye on these transactions and make sure they are being categorised correctly.

Bookkeepers might also have to manually add any transactions that aren’t included in the bank feed. The transactions that need to be added will most likely be transactions generated outside of the accounting system, such as cash payments or handwritten checks. It could also involve matching deposits as customer payments to manage accounts receivable or outgoing transactions as payments against vendor bills.

Handle Accounts Receivable

Accounts receivable management can take on a few forms. As mentioned above, the small business staff might be entering their estimates or invoices, and they might be receiving payment against the invoices.

However, there’s another option. The client uses an industry-specific estimating program to calculate the job, then provides the bookkeeper with the total. They then enter the estimates into their QuickBooks Online account and create or progress invoices as the project moves along.

Creating invoices, sending them to customers, providing statements, and assisting in collections is all part of the A/R services we provide for our clients. The customer lets the bookkeeper know when they’ve been paid, we enter that payment in QuickBooks Online, and then we create a deposit to match what the client takes to the bank.

Handle Accounts Payable

Along with accounts receivable, many bookkeepers also handle their clients’ accounts payable. That means the bookkeeper will handle all of the vendor bills that the company receives. Bookkeepers will note payment deadlines from each vendor, early payment discounts if available, and submit payment to the vendor. As a company grows, bookkeepers can add additional approvers to give the thumbs up for prices. Properly managing your accounts payable is essential for maintaining relationships with suppliers and keeping favourable trade credit terms.

Work with Your Tax Preparer

One of the services that many bookkeepers fail to mention is that, by default, they’re going to serve as a sort of translator between you and your certified public accountant or enrolled agent. Because bookkeepers have a much more intimate knowledge of your books, it’s sometimes easier to have your bookkeeper contact your tax preparer when you’re about to file your small business taxes.

Prepare Financial Statements

Most bookkeepers will prepare three primary financial statements for your business—the profit and loss statement, balance sheet, and cash flow statement. It’s a good idea to have updated financial statements every month, and then again at year-end. The profit and loss statement shows your business’s bottom line and operating expenses. The balance sheet shows your business’s balance of assets and liabilities. The cash flow statement shows the cash flowing into and out of your company. Accounting software allows bookkeepers to prepare these financial statements and share them with your accountant and tax preparer.

Process Payroll

Bookkeepers also, at times, fulfil payroll and human resource functions. Your bookkeeping service might have a payroll offering, or they might assist you in the processing of paychecks or tax payments and forms. They might simply input payroll data into your accounting system after your payroll service provider has submitted reports to you, or they might import the data from a file provided. Bookkeepers might also help you manage timesheets for hourly employees or overtime.

Make Technology and Process Streamlining Recommendations

Bookkeepers are also pretty good at keeping up with the latest and most remarkable technologies. It’s not unusual for your bookkeeper to find a new app or solution specific to your industry, like self-employed accounting software, for example, primarily if many of their clients work in the same space. Or maybe there’s a way to help you cut labour costs. Bookkeepers like to search for efficiencies and make your back office run as smoothly as possible. In this way, they can be a precious partner to your business.

How Much Does a Bookkeeper Cost?

Freelance bookkeepers typically charge between $30 to $50 per hour for basic bookkeeping tasks. Prices can be lower than average if you just need someone part-time to do simple data entry tasks. However, if you’re looking for someone with accounting or tax preparation skills, be prepared to spend more.

All of the following factors can affect the cost of your bookkeeper:

  • Types of tasks you’d like the bookkeeper to do
  • Complexity and volume of your business’s financial transactions
  • Bookkeeper’s experience
  • Number of hours worked per month
  • Whether you use any accounting software and what type (most bookkeepers prefer QuickBooks Online)
  • Your business’s location

A bench is a bookkeeping service that balances your books every month. They reconcile transactions, prepare financial statements, and provide you with a year-end financial package to make tax filing easy. They will also work directly with your tax professional.

Bookkeepers vs. Accountants

A bookkeeper has training in recording, categorising, and reconciling financial transactions. Most accountants have a bachelor’s degree in accounting and are skilled in interpreting financial records to make business recommendations.

Many people are confused about the difference between bookkeepers vs. accountants, and the truth is that some bookkeepers also perform accounting tasks. For example, accounting software now makes it pretty easy for bookkeepers to prepare financial statements, a job that was traditionally reserved for accountants.

It helps to think of a bookkeeper as the chef who prepares the meal. The bookkeeper qualifies the books and makes accurate financial records available. The accountant is like the food critic. The accountant will dig deeper into the financial records and analyse the business’s finances. An accountant can advise you on ways to conserve costs, increase profits, and help you understand business decisions’ economic impact.

Bookkeepers Help You Get Back to Business

There you have it—all of the primary skills that a bookkeeper can bring to your business. Your bookkeeper isn’t just consulting an accounting book and doing simple data entry—there’s so much more that goes into bookkeeping than many small business owners realise.

The next time you find yourself wondering, “What does a bookkeeper do?” you now know that the answer can be anything from reconciling transactions to processing payroll—the answer can even be managing all of the above.

The answer to this question will ultimately depend on what you and your small business need from your bookkeeper. Either way, having a bookkeeper keeping track of your small business’s finances will free up the time and energy you need for growing your business.

 

Guest post by : team Form -

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