Bookkeeping FAQs

Why hire a bookkeeper?

The basic facts are:

  • Tax compliance is detailed and can be quite complex and confusing.
  • Requirements are often updated and/or changed and unless you’re working in the industry how will you keep up to date with these changes?
  • Professional bookkeepers are required to be educated, qualified and experienced. (For bookkeepers the current experience required is 700hrs to even apply for registration)
  • You will probably spend more time doing your accounts than a professional will, and your time is more efficiently spent doing chargeable work within your business
  • Unless you are experienced it’s likely you will be missing deductible claims or making mistakes with the figures you are preparing.  This can have far greater impacts & costs than you may realise, in that your tax agent or accountant will spend time (at a much higher hourly rate than a bookkeeper) correcting your accounts or the ATO may discover errors and decide to audit you or require you to resubmit your returns.

 

What does a professional bookkeeper do?

A professional bookkeeper will take on many of the tedious tasks such as data entry, reporting, and reconciliation.  A professional bookkeeper can also organise paying bills, debt collection, superannuation, BAS etc.

 

What’s the difference between a bookkeeper & an accountant?

Normally a bookkeeper will focus on day to day data entry, bank reconciliations, and generally preparing the accounts and reports for handing over to your accountant at tax return time.  Whereas a qualified CPA or Chartered Accountant can provide tax advice, prepare financial statements, tax returns, and provide business assistance.

 

What about payroll?

A professional bookkeeper can assist you by processing your payroll, on or off-site.  Professional bookkeepers understand issues with contractors, directors’ fees, PAYG withholding, superannuation choice, allowances, fringe benefits tax etc.

 

Are bookkeepers insured?

A professional bookkeeper should always have extensive professional indemnity and public liability insurance, to protect clients in the event of a negligence claim.