Thursday, 22 Aug 2019
Most people don’t know much about the role of a bookkeeper and often relate it to accounting. However, they are not accountants and have a different job profile altogether. If this has got you even more confused, then let us help you in busting the myths.
So the question is, what do they actually do? In simple terms, they keep track of the transactions taking place in an organisation. They are needed because they inform the management about the financial health of the business so that the vital decisions can be made based on the current statistics.
A bookkeeper is primarily involved in the maintenance of accurate financial records, and this data is analysed by the accountants. So when you are looking for an experienced bookkeeper in Sydney, you must be aware of their job profile to allocate relevant responsibilities to them. Let us take a closer look at their role in an organisation.
So when we speak about recording the financial data, the job is not restricted to putting numbers into spreadsheets. It entails several other tasks. These days the records are maintained digitally with the help of cloud-based accounting software.
The bookkeepers then provide these records to the accountants during the tax season or when a business decision involving funds is to be made. Whether the business is based in Chatswood, Randwick, or Parramatta, the job function of the bookkeepers remains the same. Here is what all they can do for your Sydney-based business.
As stated above, the bookkeeper in compliance with the orders of the Australian Securities & Investment Commission (ASIC) maintains some form of written financial records that give insights into the financial health and performance.
Also, they must take care of accuracy to enable audits. So they have the obligation of collecting information related to transactions and processing receipts, payments, invoices and other incomings and outgoings.
It includes preparing documents like balance sheets, profit and loss statements, cash-flow statements, etc. Traditionally, it was known as data entry as everything was done manually, but with the help of accounting software, it has all become digital.
The frequency of generating financial reports is dependent on the company in Sydney and its working process. However, the entries are to be made daily.
For offering BAS services, the bookkeepers must be registered BAS agents. Otherwise, it can lead to significant penalties. The BAS services involve bookkeeping work related to GST or PAYG and implementing tax codes in the software, making business activity statements and coding tax invoices.
They also create reports for business loans being paid by the company. They take care of compliance requirements at the local, state and federal level so that the company does not get penalised at any point.
So whether you are located in Chatswood, Randwick, or Parramatta, they will ensure that the business meets all the compliance obligations as well as tax deadlines in the city.
The bookkeeper is responsible for making sure that all the expenses are documented and reconciled to the delivery receipts. They also need to make certain that all the cash transactions and credit card payments are also noted down.
They will identify the wastage of funds and inform about the same to the management. It helps in managing financial balance.
Besides the usual expenses, the bookkeeper has to keep a close watch on the petty cash, which is utilised to acquire small items by the employers in Sydney. It can affect the reserves so the bookkeeper must keep a check on this spending as well.
The bookkeeper has to ensure that all the employees are paid and has to maintain a checklist of timesheets to provide the payable commissions.
They calculate the payroll tax and superannuation and maintain the record of all the staff members and their bank accounts in Sydney. From July 2019, employers have to report real-time super payments using Single Touch Payroll to the ATO.
All the businesses have to comply with this system whether they are based in Chatswood, Randwick, Parramatta or any other part of Sydney.
The reconciliation of accounts is a crucial task carried out by the bookkeeper wherein he/she compares transactions recorded internally with the statements issued by banks and credit card companies.
This helps in assuring that the accounts match and you have accounted for all the transactions correctly. It also aids in identifying fraudulent credit card transactions, embezzlement or any other financial discrepancy.
They need to check that all the expenses have been mentioned accurately and all the incomes have been reported.
Based on their reports, the bookkeepers can also create and maintain the budget and help in explaining it to the stakeholders. They also give advice on budgeting and forecast the future numbers using the current reports.
This job is done by the accountants in some firms, but the lines between their responsibilities become blurred depending on the size of the organisation.
A vital task conducted by a bookkeeping company is the collection of payments from customers. Efficient and experienced bookkeepers are on top of such things and send out the invoices as soon as the projects are delivered, or the goods are received by the clients.
They work on following up with the consumers and tracking the incomings. It is significant to get the receivables on time as it helps in managing the cash-flow and avoids any deficit.
The bookkeepers need to appropriately differentiate between the accounts besides the usual income and expenses.
The other accounts include current assets (which can be converted into cash in the next one year), non-current assets (which cannot be converted into cash in the next one year), equity (the interest which is gained by the owner or shareholder consisting of the capital contributed and the profit and loss built up over time) and cost of goods sold (which includes cost of raw material, production cost, and cost of supplies).
Although small business owners try to do the bookkeeping themselves, it is not easy to multitask when you are running an organisation. Thus you must hire a bookkeeping company in Sydney to ensure that the financial records are maintained meticulously and the finances are managed appropriately.
