Everything You Need to Know About Bookkeeping

Published on April 27, 2023

Being a bookkeeper is both an engaging and rewarding experience. It’s the perfect career path for those who seek professional growth, personal satisfaction, and the possibility to make a lasting impact in the world of business.

So what is bookkeeping? It’s the practice of recording, organising, and maintaining the financial transactions of an organisation. It involves tasks like recording daily transactions, reconciling bank statements, managing accounts payable and receivable, and so forth.

In short, bookkeepers are in charge of providing a clear and accurate picture of a business’s financial health and thus enable business owners to make data-informed, strategic decisions.

Bookkeeper Job Description

A bookkeeper, also known as a bookkeeping clerk, is primarily responsible for maintaining an accurate and up-to-date record of all financial transactions, making sure that the company’s financial statements are a true reflection of its current state. Put another way, they’re essentially the one source of truth that can confidently say that their company won’t be the root cause of another financial recession – that means no discrepancies, no insider trading, no running from the law. Having a keen eye for detail is a requirement for this job as minor errors can have significant implications for a business’ bottom line. A bookkeeper should know how to record and categorise all types of financial transactions (e.g., sales, purchases, payroll). With the advent of cloud-based virtual bookkeeping software, this process has become much more streamlined and allows bookkeepers to access their data from anywhere, at any time.See the difference between a bookkeeper and an accountant here.

How to Become a Bookkeeper

To be frank, bookkeeping – the finance field, in general – has a high barrier of entry. For aspiring bookkeepers, you need to put in the time and effort to build a solid foundation of knowledge, skills, and practical experience before you land your first client.

1. Take a Bookkeeping Course or Certification

The importance of formal education in the field of bookkeeping cannot be overstated. You must conduct due diligence when selecting an accredited bookkeeping course that meets industry standards and has an up-to-date curriculum. After all, the financial world keeps evolving – not to mention the regulations per jurisdiction vary.

For example, an accountant in Bowral would tell you that if you’re a small business in the Southern Highlands of Australia, your tax rates would differ from those in Victoria and Queensland.

Many educational institutions and professional organisations in Australia offer accredited courses. If you’re interested, you can check out the Certificate IV in Accounting and Bookkeeping.

2. Learn Hard and Soft Skills

Diversify your skill set. Don’t just rely on what you’ve learned in school or YouTube university.

Get a good grasp of hard skills (core technical abilities) like mastery of bookkeeping software, proficiency in spreadsheet management, and robust data analysis. Here at The Bookkeeping Studio, we like to use the programs Xero and Hubdoc.

Soft skills, on the other hand, are interpersonal skills that play a pivotal role in your overall professional success. These include effective communication, leadership, time management, problem-solving, and adaptability. You can enhance these skills by participating in workshops, networking events, and online courses.

3. Gain Real-World Experience

You can’t be an armchair expert if you want to excel in this career; you need to complement your theoretical knowledge with practical, real-world experience. Gain hands-on exposure. One way to do so is by seeking internships or entry-level positions at accounting firms, bookkeeping agencies, or small businesses. You could also volunteer for non-profit organisations to develop your expertise.

4. Choose a Specialisation

As you progress in your career, you might want to consider specialising in a particular niche or industry, such as construction, retail, non-profit, or e-commerce, among others. Differentiate yourself from your peers and become the go-to expert in your domain of choice.

Pro tip

Don’t get blinded by the industry that everyone says will make you rich. Choose a specialisation you’re actually interested in, and the money will follow.

Take Routine Bookkeeping off Your Endless To-Do List With Certified Finance Professionals

The journey to becoming a successful bookkeeper is long, multidimensional, and dare I say, worth it. I take immense pride in this profession. At the same time, I have so much respect for anyone in the finance field who continues to contribute to the success of Australia’s thriving economy.

That said, here at The Bookkeeping Studio, not only are we committed to providing business owners with the financial support they need, but we also would love to answer any questions aspiring bookkeepers have. Whether you’re just starting your journey or looking to refine your skills, our team is here to guide you. Contact us today.

About the Author

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.