What Bookkeepers Do and How They Help Small Businesses Succeed
Learn how bookkeepers for small business improve finances, manage taxes, and boost cash flow. Explore a small business bookkeeping course today.
Running a small business can be challenging. Managing the day-to-day operations, sales, and customer relationships is time-consuming enough. And finances? That's a whole new ball game. Add keeping track of financials, taxes, and expenses to the mix, and it’s easy to see why many who own businesses outsource to bookkeepers for small business.
But what exactly does a bookkeeper do? How do they help small businesses in Australia and around the globe thrive? We answer both questions in this post. Let's explore the roles bookkeepers play and how you can start a career in this field.
What Is a Bookkeeper?
A bookkeeper is a professional who is responsible for recording, organising, and maintaining financial transactions for businesses, particularly small businesses. They provide critical support by checking that a company's financial records are accurate and up-to-date.
The services bookkeepers provide make businesses stay compliant with tax regulations and gain valuable financial insights. By handling the financial groundwork, these people equip business owners with tools for making informed decisions.
What Does a Small Business Bookkeeper Do?
Now that you know what a bookkeeper does, let’s dive deeper into the specific tasks they handle.
A small business bookkeeper performs a variety of tasks to keep a company’s finances running smoothly. Some of the most common bookkeeper duties and responsibilities include the following:
Recording daily financial transactions, such as sales and expenses
Managing accounts payable and receivable
Processing payroll and handling superannuation payments
Reconciling bank accounts
Preparing financial reports, including profit and loss statements
Monitoring cash flow
Ensuring compliance with tax laws and other financial regulations
These important financial tasks free up business owners to focus on growth and innovation.
How Bookkeepers Help Small Businesses Succeed
Bookkeeping for small business finances can have a major impact on a company's success, considerably improving financial stability and operational efficiency. Here’s how hiring a bookkeeper benefits businesses:
Improved Financial Clarity
Accurate record-keeping helps business owners understand how money flows in and out of their company. This clarity is useful for making smart financial decisions and planning for future opportunities.
Time Savings
Small business owners often have to wear many different hats, but time is a finite resource. Outsourcing bookkeeping tasks allows them to spend more time on strategic priorities rather than administrative duties.
Tax Compliance
Bookkeepers for small business make sure businesses meet their tax obligations by tracking expenses and preparing reports. That prevents costly penalties and audits.
Better Cash Flow Management
Tracking accounts receivable and payable makes it possible for businesses to maintain a healthy cash flow. It ensures that operations run as they should and prepares the company for upcoming expenses.
Informed Decision-Making
Detailed financial reports provide insights into performance, empowering owners with data-driven choices that grow their business. Regular analysis can highlight trends and areas for improvement, enabling proactive management.
Bottom line, having expert financial management is a game-changer for a lot of small businesses. It doesn't matter if you hire an in-house professional or go with outsourcing bookkeeping services.
How to Become a Small Business Bookkeeper
If you're thinking about a career in bookkeeping, it's a fantastic option - especially if you enjoy numbers, problem-solving, and economics. It's a stable profession with the flexibility to work in various industries.
Steps to Becoming a Bookkeeper
Getting started in bookkeeping involves taking several steps:
Understand the role. Familiarise yourself with bookkeeper duties and responsibilities like recording transactions, generating reports, and maintaining compliance.
Take a small business bookkeeping course. Enrol in the Certificate IV in Accounting and Bookkeeping to build a strong foundation in accounting systems, financial reporting and payroll.
Learn financial software. Proficiency in tools like MYOB, Xero, and QuickBooks is a must for most bookkeeping roles.
Gain practical experience. Apply your skills in real-world settings through internships or part-time roles.
Earn relevant certifications. Consider becoming a BAS agent to expand your service offerings.
Following these steps will set you on the path to becoming a successful small business bookkeeper.
Why Study Bookkeeping at Swinburne Open Education?
At Swinburne Open Education, we provide online courses backed by Swinburne University of Technology. Our versatile courses for Australians let you study when it suits you, without compromising on quality.
When you choose us, you benefit from:
Flexible learning: Fit study around your life and commitments.
Industry-designed courses: Learn practical skills in high demand by employers.
Real support: Get the help you need to achieve your career goals.
Are you new to finance or looking to formalise your skills? Our small business bookkeeping course gives you everything necessary to enter and do well in the field. You simply take action and follow through.
The Certificate IV in Accounting and Bookkeeping is more than just a qualification. It gives you:
Hands-on experience with essential software like MYOB and Xero.
The educational requirements for BAS agent registration, so you can offer BAS services.
Practical, job-ready skills that are in high demand.
And a complimentary membership to the Institute of Certified Bookkeepers.
Bookkeeper Salary and Career Outlook
The demand for bookkeepers for small business roles continues to grow as businesses seek efficient financial management solutions. According to Seek, the average salary for a bookkeeper in Australia ranges from $70,000 to $80,000 per year.
Those offering outsourced bookkeeping services may earn even more, depending on experience and client base. Many bookkeepers in the small business sector achieve a competitive income.
Bookkeepers for Small Business FAQs
Yes, small businesses absolutely need bookkeeping. It helps them maintain accurate financial records, meet tax obligations, and more.
A small business bookkeeper records transactions, reconciles accounts, prepares reports, and ensures tax compliance.
Bookkeeping tasks that are common for small businesses include recording daily transactions, reconciling bank statements, managing payroll, and preparing tax reports.
You can become a small business bookkeeper by enrolling in a small business bookkeeping course like the Certificate IV in Accounting and Bookkeeping that Swinburne Open Education offers.
Final Thoughts
Bookkeeping is essential for any small business to grow and flourish. Through maintaining accurate records and ensuring financial compliance, bookkeepers empower small businesses to succeed.
If you are interested in getting into bookkeeping, contact us to learn more about our bookkeepers for small business course at Swinburne Open Education. Take the first step toward a rewarding career today!