What is bookkeeping?
Bookkeeping involves the process of recording, analysing and interpreting the financial transactions of a business or individual. The discipline of bookkeeping accounts for a large proportion of the accounting process.
A bookkeeper’s duty is to set up financial statements so that an accountant can easily perform legal and tax management in a timely manner.
A skilled and compliant bookkeeper should be able to produce financial records that give business accurate information about its financial activities. These records are critical to the future success of any business. Not only are these records necessary for the business, they are also required by law. Australian legislation states that businesses must have up to date financial records to ensure that they pay all necessary taxes and levies.
Records must be kept that are accurate and true for a period of at least 5 years from the date that the documents were prepared, obtained or the transaction completed, whichever occurs the latest. Some records, such as payroll, must be kept for a minimum of 7 years.
A good contract bookkeeper is able to:
- Set up accounting systems and software properly
- Enter transactions
- Perform checks, reconciliations and end of year processes
- Ensure they are up to speed with legislative requirements and management reports
- Undertake payroll duties and compliance
- Prepare BAS returns, as a registered BAS agent or under the supervision of a registered BAS agent
- Provide general business administrative support