What does a bookkeeper actually do each month?
A lot of business owners know they "should" have a bookkeeper but aren't sure what they'd actually be paying for. Here's what a typical month looks like when I look after a small business's books.
Week 1: Reconcile everything
Every transaction from your bank accounts and credit cards is matched to the right invoice, bill or expense category. This is the foundation. If it's wrong, every report built on it is wrong too. I also chase up anything that doesn't match, like a payment with no invoice or a receipt with no transaction.
Every pay run: Payroll
If you have staff, I process the pay run, check rates and leave, report it to the ATO through Single Touch Payroll, and make sure super is paid on time. Under Payday Super, that means super reaches each employee's fund within 7 business days of payday.
Throughout the month: Bills and invoices
Supplier bills get entered and scheduled so you pay on time without paying early. On the other side, I keep an eye on who owes you money and send reminders when invoices go overdue, so you're not doing the awkward chasing yourself.
End of month: Reports in plain English
You get a short report showing your profit and loss, cash position and anything worth your attention. That might be a cost that's crept up or a customer who's slow to pay. No jargon, and you can always ask what something means.
Every quarter: BAS
Because the books are reconciled monthly, preparing your BAS is a review rather than a scramble. I check the GST coding, prepare the figures and make sure it's lodged on time.
What a bookkeeper doesn't do
A bookkeeper keeps your records accurate and up to date, make sure your compliant. Your accountant then uses your records for your tax return, tax planning and business structure advice. With clean books, your accountant spends less time fixing things, which usually means a smaller bill.
Want to see what it would look like for your business?
Every business is a bit different, so I tailor the monthly routine to what you actually need, for a fixed monthly fee. Book a free 30-minute call and I'll walk you through it.
