People who excel in their chosen field will often opt to start a business. They may think that they can simply do the work and get paid. However, there are many other facets that all contribute to your business’s success. One of the key aspects is managing the finances and reporting income and outgoings to the Australian Taxation Office. This might seem straightforward enough, but there is a wide range of factors that you need to take into account when it comes to the day-to-day running of your business. As a business owner, you may recognise that you need a bookkeeper. But what is a bookkeeper? And what work do bookkeepers do? Let us break down exactly what they are and how they can help your business.
What Do Bookkeepers Do?
A bookkeeper is responsible for processing and keeping records of the transactions going in and out of your business accounts. They ensure that each and every transaction is accounted for and that your financial records are maintained in a clear and efficient manner. A bookkeeper is often responsible for ensuring that you remain compliant and up to date with reporting to the Australian Taxation Office (ATO). They also ensure that your files are ready for your accountant to do the end of financial year reporting in a timely manner.
Here at Darcy Bookkeeping, we have a team of certified and experienced bookkeepers ready to help free you up to do what you do best – running and growing your business. Call us on 1300 728 875 or send us an enquiry to see how we can help ensure the success of your business.
What Is Bookkeeping?
Bookkeeping is the practice of recording the financial transactions of a business in order to keep track of incomings and outgoings. This allows the business owner to stay abreast of the financial health of their business and see easily the profitability of the business on its current trajectory. Most commonly, a bookkeeper will use a cloud-based accounting software system (such as Xero, MYOB or Quickbooks) that is best suited to your business needs.
A bookkeeper can then use this data to create a wide range of reports to see important details like:
- How much money the business owes
- How much is owed to the business
- Where the business is spending the majority of its money
- How much the business spends on wages and taxes
- What the gross profit of the business is
Small business owners may find it challenging to keep on top of the day-to-day running of the business; grow their business in a sustainable way; manage staff, rostering, leave and payroll; pay bills in a timely manner; report to the ATO and other relevant agencies; and stay abreast of how much profit is being made.
There’s so much to do that it’s easy to get sidetracked. This can cause a business owner to overlook the timely submission of necessary compliance documents and reports. Consequently, they may face hefty penalties and overdue fees. This is where a bookkeeper becomes invaluable; they are able to relieve the burden of some of the more mundane and laborious tasks associated with running a business. This frees the small business owner up to focus on what they do best – running and growing their business.
What Is a Bookkeeper?
A bookkeeper is an individual who a business engages for the express purpose of completing the administrative tasks of bookkeeping. They are trained and qualified to prepare the documentation in a format and manner that is clear and concise. They also report on behalf of the business to the relevant bodies. Bookkeepers can then analyse these reports and determine where changes can be made to improve the profitability of a business. This can be through cutting costs in one area or through increasing revenue in another.
Because bookkeepers are trained in their field, they are familiar with the processes and accounting software options available. As a result, they are more efficient at data entry and processing, as well as generating reports to get the information required in a short period of time. Bookkeepers are also responsible for calculating and reporting the various taxes that businesses are required to pay. These taxes include Goods and Services Tax (GST), Fuel Tax Credits, Wine Equalisation Tax (WET), Fringe Benefits Tax (FBT), Payroll Tax, Pay As You Go Withholding Tax and Business Income Tax Instalments. Bookkeepers are also able to liaise with the accountant in order to streamline end of financial year reporting, saving time and money for the business owner.
There are many ways to engage a bookkeeper for your business. You can hire an in-house bookkeeper, or you can choose to have a remote bookkeeper. We break down the pros and cons of each in our article Outsourced Bookkeeping: Benefits VS Hiring In-House.
What Are the Duties of a Bookkeeper?
The key duties of a bookkeeper include:
- Data entry
- Bank reconciliation
- Reconciliation of credit cards
- Business Activity Statement (BAS) creation and lodgement
- Individual Activity Statement (IAS) creation and lodgement
- Calculation of Superannuation Payable and subsequent reporting
Bookkeepers may also be responsible for the following:
- Training in accounting software
- Setup of accounting software
- Payroll processing
- Accounts Payable
- Accounts Receivable
- Invoicing
- Liaising with Accountant and/or ATO
- Creation of financial reports such as Profit & Loss and Balance Sheets
For a comprehensive look at what a business is required to report to the ATO, you can check out their guide to Record Keeping for Business.
How Can Your Bookkeepers Help Me?
Here at Darcy Bookkeeping & Business Services, we have a team of experienced and qualified bookkeepers who are able to fulfil all of your bookkeeping needs. We have teams in most major Australian cities as well as a remote team. Our bookkeepers have experience with a wide range of industries and business sizes.
We can:
- Handle your books for you
- Advise on your business accounting needs
- Help you set up and manage your accounting and bookkeeping software
- Answer any of your bookkeeping questions
Are you ready for us to give your business the boost it deserves? Call us on 1300 728 875 or send us an enquiry to see how we can help you take your business to the next level.