Bookkeepers play a vital role in maintaining the financial stability of businesses by keeping their accounts accurate and organized, which helps to avoid financial errors. Understanding this role can help you decide whether a career as a bookkeeper aligns with your professional ambitions.
In this article, we explain ‘What do bookkeepers do?’, look at their typical salaries, outline the required qualifications and work settings, provide guidance on how to become a bookkeeper, provide sample job descriptions, and highlight relevant career paths.
What Is a Bookkeeper?
A bookkeeper is a financial professional who manages and records the financial activities of a business. They play a key role in helping companies and small business owners monitor their income, expenses, and overall financial position.
Simply put, they act as the financial backbone of an organization, ensuring that every penny is kept track of and every transaction is properly documented. But what does a typical day for a bookkeeper entail?
What Does a Bookkeeper Do?
When researching careers in accounting and finance, it’s helpful to understand the role and responsibilities behind the question, “What does a bookkeeper do?” A bookkeeper is a finance professional whose primary focus is managing and maintaining accurate financial records within an organization. They can work in businesses of all sizes, from small companies to large corporations, and their main duties are usually relevant across a variety of workplaces.
Bookkeepers are typically responsible for recording both income and expenses, including planning and documenting all bills, invoices, accounts payable, and other financial transactions. They also spend part of their day reviewing cash flow, monitoring balance sheets, and contacting clients to collect outstanding payments. Most bookkeepers rely on accounting software to keep digital financial records up to date. Additional tasks for a bookkeeper may include:
- Receiving, recording, and securely handling cash, checks, and vouchers from customers
- Preparing reports on financial activities to stay aware of budget constraints and providing references to executives and other departments
- Auditing records to ensure accuracy and verifying that the books are properly balanced
- Identifying discrepancies in financial statements and data to enable appropriate investigation and resolution
- Processing payroll to ensure that employees are paid accurately and on time using their preferred payment methods
- Receiving invoices from vendors and approving payments at the appropriate time using appropriate procedures
- Managing accounts receivable, tracking money owed by customers, and ensuring timely collections
- Performing bank reconciliations by comparing the company’s financial records with bank statements to confirm accuracy and resolve any discrepancies
8 Key Bookkeeping Duties
Different businesses require different types of bookkeeping support.
Needs depend on factors such as company size and industry. Geekbooks offers a variety of services to suit clients in different sectors.
If routine tasks like data entry or bank reconciliation seem overwhelming, outsourcing them can free up your time and mental energy to focus on core business activities.
If you’re not sure whether all of your bookkeeping responsibilities are being handled properly, this guide sheds light on the essential processes to monitor.
If you choose to handle bookkeeping in-house, Geekbooks can also provide guidance and training to help you set up the right systems.
Whatever your approach, here’s a list of the 8 most important bookkeeping duties you should know.
1. Data Entry
Data entry forms the basis of bookkeeping. It involves recording every financial transaction in the relevant journal.
These entries are then posted to the general ledger, with supporting documentation where necessary, to maintain a complete, accurate, and current record of the company’s finances.
2. Bank Reconciliation
Bank reconciliation is another important accounting function. It involves matching the transactions recorded in your accounts with the transactions in your accounts.
The goal is to ensure consistency between the company’s records and bank statements, eliminate any discrepancies, and prevent problems when preparing the annual accounts.
3. Monthly Reports
Monthly reports typically include:
- Balance Sheets
- Profit and Loss Statements
- Cash Flow Statements
- Aging Receivables and Payables
These reports provide business owners with a clear, current view of financial performance. They help in planning strategies and preparing year-end reporting.
4. Accounts Receivable (and Credit Control)
This duty involves invoicing customers and monitoring payment status.
It also includes following up on overdue accounts. Efficient accounts receivable management ensures that a business collects the money it owes, keeping profits healthy.
Further Reading: Top 10 Outsourced Bookkeeping Services in Sydney (2026)
5. Accounts Payable
Accounts Payable covers all of your business’s outstanding bills and debts.
Making timely payments is essential to maintaining good relationships with suppliers, contractors, and lenders. You also need to carefully manage your payment schedule to avoid cash flow problems.
6. Payroll
Payroll involves more than just issuing salaries. Employers must withhold taxes correctly and administer employee entitlements such as leave and benefits.
Payments must be made on schedule, and all records must be submitted to tax authorities to ensure compliance.
7. Tax Filing
Businesses must submit various mandatory tax returns throughout the fiscal year.
Errors can lead to overpayments or penalties. Bookkeepers often handle tax filings, although accountants can also do this. Accurate bookkeeping throughout the year is essential for proper tax filing.
8. Year-End Report
Year-end reports compile financial data for the entire fiscal year, similar to monthly reports but with a broader scope.
These reports provide insight into long-term performance and help business owners and stakeholders make informed strategic decisions. Accuracy and clarity are essential.
Essential Skills for a Bookkeeper
Organizational Skills
Bookkeepers manage a variety of financial documents and tasks every day. Strong organizational abilities help them keep everything organized and avoid excessive pressure.
Time management
Bookkeepers must meet strict deadlines. Efficient time management ensures that financial records and reports are updated and distributed promptly.
Problem-solving skills
When errors or discrepancies occur, bookkeepers must effectively investigate and correct them. Strong problem-solving skills help maintain accurate and reliable financial data.
Attention to Detail
Accuracy is essential in bookkeeping. Every number counts, and a skilled bookkeeper takes great care to ensure that all financial records are accurate.
Computer Literacy
In the modern workplace, familiarity with bookkeeping software and spreadsheet tools is essential. Experience with programs such as QuickBooks, Microsoft Excel, and other accounting software adds significant value.
Conclusion
Understanding the role of bookkeeping services in Melbourne and how they work is important for any business. Professional bookkeeping like Truetally Bookkeeping ensures that your financial records are accurate, your cash flow remains healthy, and your company complies with tax laws.
Whether you rely on in-house staff, cloud-based software, or outsourced experts, effective bookkeeping creates the foundation for business growth, smart decision-making, and long-term financial stability. Investing in professional bookkeeping isn’t just essential—it’s a strategic move that can save time, reduce stress, and help your business thrive.
Continue Reading: Construction Bookkeeping Services in Australia | Outsourced Bookkeeper For Construction
FAQs: Frequently Asked Questions
Q1. Are bookkeepers and accountants the same?
No. Bookkeepers focus on managing day-to-day records and ensuring compliance, while accountants use that information to prepare tax returns and guide financial planning.
Q2. What exactly do bookkeepers do?
Bookkeepers manage transactions, payroll, invoicing, financial reporting, accounting software setup, and ensure that all activities comply with ATO rules and regulations.
Q3. How much does an average bookkeeping service cost?
Costs depend on the size of your business, complexity, and the type of services you choose. For small businesses, outsourced bookkeeping in Australia typically ranges from $300 to $600 per month, while larger companies can cost $1,000 or more.
Q4. What does full-service bookkeeping include?
Full-service bookkeeping typically includes assistance with transaction recording, payroll, bank reconciliation, accounts payable and receivable, financial statements, budgeting, forecasting, and tax preparation.
