Choosing a Bookkeeper – Part 1

"David Balwin

David Balwin
CPA | Accountant | Business Advisor

Accurate, professional bookkeeping is the first step in managing your business’s finances successfully.  It is important that the bookkeeper can demonstrate accounting knowledge and skill and not simply have learnt through using software.  A good bookkeeper must know the difference between cash and accrual accounting, and have demonstrated sound knowledge of GST, tax code usage and the treatment of financial transactions.  Ask your potential bookkeeper to demonstrate:

  • their accounting knowledge and how did they got it.
  • their bookkeeping experience and how did they got it.
  • they are competent in accounting software (eg, MYOB) and can use if efficiently and effectively for your business.
  • registration to be a BAS provider.
  • the difference between accrual and cash accounting.
  • what the various tax codes are and when to use them.
  • how to treat capital, depreciation and other different types of transactions.
  • how they use the Suspence Account (note: good bookkeepers will “park” transactions in the Suspence Account until sufficient paperwork or information on the treatment of the transaction is obtained to then post to the correct and appropriate accounts).
  • reconciling bank and credit card accounts and how regularly they recommend doing it (note: bank and credit card accounts should be reconciled at least monthly).

Over the next 2 Blogs we will continue this series covering other questions and information which should be sought when choosing a bookkeeper.

Balanix Solutions Bookkeeping