The Bookkeeper’s Playbook: How to Stand Out in the Industry
Written by Bindi Gethen
Bookkeeping is like a puzzle. Each piece – every debit, credit, balance sheet, and income statement – contributes to the bigger picture of a company’s financial health. The thing is, if you’ve been doing bookkeeping for some time, it can feel like you know your software like the back of your hand. This career can make you think that you’re stagnant and complacent.
So how to be a better bookkeeper, you ask? Start by treating your role with the gravity it deserves. You’re not just a glorified calculator. You’re the financial physician – the one that manages the pulse of the business, the lifeblood that keeps everything moving. Afterwards, learn from every source of bookkeeping information you can find, be it an advanced accounting course, other finance professionals, clients, and your personal experience, among others.
How to Be a Better Bookkeeper
1. Develop Strong Bookkeeping Fundamentals
Mastery of bookkeeping fundamentals is not just a recommendation – it’s a prerequisite to becoming a better bookkeeper.
From accruals to deferrals, from debits to credits, from assets to liabilities, bookkeeping fundamentals are the bread and butter of this trade. Each one, like a domino, creates a chain reaction that ultimately paints the picture of a company’s financial health. You should know how these transactions intersect and how they influence one another.
As a concrete example, consider the seemingly simple process of recording a company’s sales. For many, it may simply appear as adding numbers to the “revenue” column. But for an exceptional bookkeeper, it’s a process embedded with nuance. You’re mindful of the timing, recognising that revenue should be recognised when it is earned, not necessarily when cash changes hands – an application of the accrual basis of accounting.
I recall when I first started in the bookkeeping industry, fresh out of college, thinking that I was well-armed with the theoretical knowledge I gained from textbooks. But when it came to practically applying these principles, I fumbled.
I remember spending hours poring over a client’s books, struggling to rectify a persistent discrepancy. It was only after consulting with a more experienced colleague that I realised my mistake – I had overlooked an accrued expense.
It was an eye-opening experience, reminding me that mastery of bookkeeping fundamentals goes beyond mere rote learning. It’s about a deep understanding, one that allows for proper application even when the situation is complex. That day, I learned that bookkeeping isn’t just about numbers, but about the narratives they tell and the importance of getting that narrative right.
2. Stay Updated With Accounting and Bookkeeping Standards
In the dynamic world of finance and accounting, standing still is the equivalent of moving backwards.
Understanding the International Financial Reporting Standards (IFRS) or the Australian Accounting Standards Board’s (AASB) requirements is a core component of your role. These standards are continually evolving, shaped by changes in the economy, new business models, and even societal shifts.
Thus, staying abreast of these changes isn’t just about ticking a box for compliance – it’s about ensuring you remain an effective, valued professional.
Consider the impact of the AASB’s adoption of the IFRS 16 Leases in recent years. It revolutionised the way we account for leases, requiring lessees to recognise nearly all leases on the balance sheet. This changed the financial metrics and ratios significantly for many businesses. As a bookkeeper, understanding this shift was paramount to effectively communicate these changes to management and stakeholders.
Or think about the increasing emphasis on sustainability and the environment. Many accounting bodies globally are moving towards standards that require the reporting of environmental, social, and governance (ESG) factors. Bookkeepers who are ahead of the curve in understanding these changes will find themselves in high demand.
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3. Learn Various Bookkeeping Software and Skills
Long gone are the days when bookkeeping meant leafing through endless ledger books and making entries with a pen. Today, technology is at the heart of bookkeeping, and mastering various bookkeeping software and skills is a critical aspect of standing out in this industry.
Software like Xero, MYOB, QuickBooks, and Sage have become the backbone of modern bookkeeping. They offer streamlined, efficient ways to handle everything from recording transactions to generating financial reports. More importantly, they offer bookkeepers the ability to provide real-time financial analysis, a service that is invaluable in today’s fast-paced business environment.
4. Improve Communication With Clients
The essence of communication in bookkeeping is two-fold. First, it involves simplifying complex financial jargon into terms your clients can understand. This isn’t about dumbing down the information but, rather, about presenting it in a way that enables your clients to make informed decisions about their business.
Secondly, communication in bookkeeping also includes listening – understanding your clients’ needs, concerns, and aspirations.
Take, for example, the presentation of a balance sheet. To an untrained eye, this could seem like a confusing assortment of numbers and financial terminology. However, as the bookkeeper who knows best, it’s your responsibility to translate this into meaningful insights – identifying trends, highlighting potential risks, and pointing out opportunities.
Another example is in dealing with taxation matters. It’s no secret that tax can be a confusing and stressful subject for many business owners. Here, your role as a bookkeeper extends beyond the mere computation of taxes. It includes explaining the tax implications of various business decisions and assisting your clients in effective tax planning.
5. Invest in Professional Development
Bookkeeping isn’t a static profession. It’s an ever-evolving landscape, driven by changes in technology, regulations, and business practices. To thrive in this environment, you need to be committed to continuous professional development. It’s an investment that pays dividends, both in terms of career advancement and service quality.
Pro tip
Professional development can take various forms – from attending industry seminars and workshops to undertaking additional qualifications – that expand both your knowledge of the industry and your professional network.
6. Figure Out Your Edge
In the crowded field of bookkeeping, finding a way to stand out from the crowd can be challenging. Yet, it’s a necessity. To carve out your niche in the industry, you need to figure out your edge – that unique selling proposition (USP) that sets you apart from others.
Your edge could be anything from your expertise in a specific bookkeeping software to your ability to service a particular industry niche. It might be your commitment to customer service, your knack for simplifying complex financial information, or even your availability outside regular business hours. Ask yourself, “What makes me a one-of-a-kind bookkeeper?” and leverage your answer to distinguish yourself in the market.
For instance, if you have prior experience in the hospitality industry, you could promote your virtual bookkeeping services to restaurants and cafes. Or perhaps your edge lies in your communication skills. In an industry often stereotyped as impersonal and number-focused, your ability to build strong, personalised relationships with your clients could set you apart.
Learn from Experience
The most delusional thing about experience is that most people think it’s just something you magically collect as time passes. That’s not true. You don’t “get” experience just because you’ve been doing something for a certain number of years. You get experience by learning from every single triumph and messed-up situation, and by treating each day as a lesson to be better than you were yesterday.
So how do you learn from experience as a bookkeeper? Easy. You mess up. You make a mistake in the accounts payable; you overlook a critical tax detail; you misinterpret a financial report. Then you pick yourself up, dust yourself off, and you learn.
Every error you make is an opportunity to fine-tune your skill and deepen your understanding of what it truly takes to be the best kind of bookkeeper you can be.
No, this isn’t a get-out-of-jail-free card for consistent incompetence. I’m just saying that being paralyzed by the fear of making mistakes is a surefire ticket to mediocrity. And you’re not here for mediocrity, are you? You’re here to be a better bookkeeper.
Learn something new every day. And most importantly, when you do mess up (and trust me, you will), learn from it. Digest it. Own it. And come out on the other side a more experienced, more competent bookkeeper than you were before.
After all, the best bookkeepers aren’t the ones who never make mistakes. They’re the ones who know how to transform every mistake into a stepping stone towards their more competent selves.
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There you have it. We didn’t waste our time rehearsing the ABCs of debit and credit. Instead, we dove into the more profound aspects of the bookkeeping profession, those often overlooked in standard texts – the continuous learning, the art of human communication, the relentless drive for professional growth, and the commendable pursuit of a unique edge.
This guide isn’t the end-all-be-all. Don’t fool yourself: All the pep talks and self-reflection in the world aren’t going to turn you into a bookkeeping prodigy overnight. You’ll need help. If you have any burning questions about bookkeeping as a career, feel free to reach out to us.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
