In today’s economic and financial sectors, bookkeepers are among the most in-demand professionals. Every business, no matter how small, needs bookkeeping because the work they do directly impacts an organization’s financial situation.
To make better lending and investing decisions, investors, financial institutions, and the government need accurate bookkeeping accounting. For staff, executives, customers, and partners to be satisfied, businesses must succeed in their bookkeeping practices.
As a bookkeeper, you are responsible for meticulously recording all financial transactions. Identification, acceptance, classifying, and recording are required before the information can be reported as a financial statement. Find out more about bookkeeping, including how it differs from accounting, the skills needed, and available positions as well as pay.
Bookkeeping vs Accounting
Bookkeeping and accounting are two functions that are absolutely essential for any business organisation. Accounting is responsible for interpreting, classifying, analysing, reporting, and summarising financial data, whereas bookkeeping is responsible for recording financial transactions.
To the untrained eye, bookkeeping and accounting may show up to be the same profession. Accounting and bookkeeping are similar in that they both deal with financial data, require basic accounting knowledge, and classify and generate reports based on financial transactions. At the same time, both of these processes are fundamentally different and offer distinct advantages.
The goal of bookkeeping is to document a company’s financial transactions, whereas accounting enables the gathering, analysis, and retrieval of crucial financial data to assess a company’s financial health. Additionally, it offers the reports and information needed to make wise business decisions.
After bookkeepers enter financial transactions, the accounting department creates financial statements, asset liabilities, and projected trends for an organisation. Accounting analyses bookkeeping data, interpret financial data and produces reports that managers can use to gauge the financial health of their company.
The main purposes of bookkeeping are transactional and administrative. Daily financial transactions must be recorded, and a daily updated ledger of daily transactions must be kept. The complexity of bookkeeping systems varies depending on the size of the company.
Accounting is more individualized. Generate financial reports and gaining insight into the state of one’s finances, it involves analyzing bookkeeping data. Transforming ledger data into insightful information enhances business operations. In the course of the bookkeeping accounting process, accountants interpret, categorise, analyse, document, and summarise the financial data gathered.
Does a business need a specialist bookkeeper?
A bookkeeper is needed by numerous businesses. Whether a business needs a part-time bookkeeper, a full-time specialist bookkeeper or an entire accounting department depends on the size and scope of the enterprise.
By gathering and entering data, bookkeepers play a crucial role in the accounting cycle of businesses. As a person who pays close attention to the details, you would be instrumental in the management and expansion of any business, from startups to global conglomerates.
A good financial data management system can offer insightful information that can be put to use and stop issues like skimming fraud. The first two steps of the accounting cycle are your responsibility as the bookkeeper, while the final two are typically handled by the accountant.
For businesses, capital management is crucial. Capital is needed for every business step, from developing an idea into a model to funding its growth. You would monitor a company’s financial transactions as a professional bookkeeper and enter them into the general ledger accounts.
Although small businesses might prefer to manage their own books, getting a professional bookkeeper can be beneficial.
As a bookkeeper with proper skills and knowledge, keeping track of an organization’s finances is your main duty. The majority of bookkeepers today create digital financial records using accounting software. A bookkeeper may also carry out the following duties:
Enter financial transactions
Normally, while conversing with others, you keep extremely accurate accounting records for all financial transactions. Maintaining and balancing financial records, including transactions from coworkers, is part of a bookkeeper’s job description. For keeping track of those daily transactions, communication is essential.
Managing the general ledger
You may check to see if any payments are due, make them, and record them in the financial ledger as part of your daily duties as a bookkeeper. You might also receive client payments as a bookkeeper and deposit them at the bank where your business has its accounts.
Prepare bank deposits
You will check sales records, monitor cash drawers, and balance receipts as a bookkeeper. Additionally, bookkeepers cash checks, make sure credit card transactions are accurate and deposit money.
Create financial reports
Managing financial reports to keep track of an organization’s profits and losses will be a part of your bookkeeping career. These financial reports also include documents related to accounts payable and receivable. They serve as a summary of the financial standing of an organisation.
Check for errors in reports
When creating reports and managing the general ledger, a bookkeeper looks for errors. You will investigate bank deposits for fraud, correct balance sheet errors, and keep accurate payroll records.
As a bookkeeper, you may handle payroll functions such as keeping tax withholding records, issuing paychecks, and sending information to a contracted payroll service. Depending on the size of the organisation, you may be responsible for keeping track of business expenses and reconciling business statements.
Reasons to Study Bookkeeping Course in Australia
Every company requires a bookkeeper.
Every business, from large industry leaders in finance and economics to the local grocery store down the street, requires someone to manage their books with the knowledge required to work. Bookkeepers are in high demand everywhere- the list is simply endless! And as a result of this rising demand, there are numerous job opportunities with industry experience. You can expect to find work quickly and easily if you have a good Bookkeeping qualifications.
Do you require flexible hours? Bookkeepers can work part-time or full-time, depending on the organisation. This is especially beneficial if you have a family or want to supplement your partner’s income. Furthermore, if you like the sound of working in your pyjamas with a cup of tea in hand (Uhm…bliss!), some companies offer freelance or work-from-home opportunities.
Is the idea of multitasking making your head spin? We understand. Fortunately, it will be part of your job description to prioritize certain tasks over others and to avoid multitasking entirely. Yes, you read that correctly—no multitasking. The ability to focus on one financial situation without becoming distracted is critical. This fact alone should entice super-organized planners to enrol in a bookkeeping course right away!
Earning a consistent, good salary equals stability in an unsteady economy and uncertain times. Bookkeepers can expect to earn a steady income that will increase with experience. PLUS, if desired, bookkeepers can easily transition into higher-paying jobs to increase their earning potential.
Make your career fit your personality
In bookkeeping, variety is the spice of life! Make your career fit your personality and life stage. If you enjoy getting out of the office, choose a job that allows you to move around and work in a variety of settings, or choose a job that does not require travel. Have fun, people. You could work in a bookkeeping position where you interact with a large number of clients. If you prefer a more secluded lifestyle, there are plenty of jobs that don’t require much socializing.
Enjoyable Career Path
Do you want to be an accountant someday? There are numerous opportunities for advancement, and many bookkeepers go on to become auditors or accountants. In fact, working your way up to controller or CFO is entirely possible! You’ll get your foot in the door if you take a Bookkeeping course.
Benefits of taking a Bookkeeping course
The skills you learn in a bookkeeping course are highly transferrable and will come in handy during the accounting process. A bookkeeper’s responsibilities include compiling all financial databases, which can range from regular transactions to daily or monthly wages.
All such financial data is then converted into simple reports that can be used as a record for future assessments. Here we will be discussing the benefits of studying bookkeeping and its impact on career growth.
Freedom of choice
The benefit of obtaining a course diploma in bookkeeping is that you will never be out of work. Because almost all businesses require financial records, bookkeepers are always in high demand. According to research, the bookkeeping industry will continue to grow at a 6% annual rate.
This means that the demand for bookkeepers will only grow in the future. People with professional bookkeeping certification will automatically stand out in the eyes of employers in such a scenario. It also means you’ll have a wider range of industries in which to begin working as a bookkeeper. The types of businesses or industries you choose are determined by your personal interests.
Better financial position
With a bookkeeping course, you can find high-paying jobs. As a qualified accounts clerk, your salary will rise as you advance through the ranks.
Furthermore, you can offer your bookkeeping services to a variety of small businesses in your area.
You have the ability to prepare financial statements.
You provide the company for which you work with a clear picture of its regular finances. You can create neat financial statements for a company’s monthly books, providing insights into all transactions that occurred.
The bookkeeping course teaches you how to report on your own or your employer’s business:
- Owes (accounts payable)
- What do you owe me? (Accounts receivable)
- The complete picture of how monthly transactions are carried out, shedding light on all accounts
Be your own boss
Unlike some other degrees and courses, a bookkeeping course allows you to be your own boss. This freedom manifests itself in the ability to establish your own practice or manage your own bookkeeping as the sole proprietor of a business. Another option is to start your own business based on the limited company model.
Still, there is more freedom that comes with bookkeeping. You can also work as a freelance bookkeeper rather than a full-time bookkeeper in your preferred industry. As a bookkeeper, you have the option of working for yourself at any time.
Knowledge of the most recent software
A bookkeeping course will also teach you the technical aspects of bookkeeping software. You can demonstrate to your employer your proficiency in using the key software required for bookkeeping or leading accounting software.
An employer will have trust in your ability to manage their books immediately and as a result, help you stand out as an ideal candidate.
Bookkeeper Qualification in Australia
Bookkeepers are in charge of maintaining a company’s financial records, monitoring transactions, updating statements, and ensuring accuracy, as well as producing financial statements and other reports for management and supervisors. Self-study can be used to teach yourself bookkeeping skills, or you can pursue an internship after high school to gain experience in a structured environment.
Bookkeepers record information from receipts, invoices, and bills using accounting software, spreadsheets, and databases to generate reports and collate data. They will also be given additional responsibilities such as purchasing, payroll, and invoicing, which may require them to communicate with clients on occasion.
A Bookkeeper may be required in some cases to prepare and file Business Activity Statements (BAS) for tax purposes. This requires registration as a BAS Agent with the Tax Practitioners Board and will improve any Bookkeeper’s employment prospects.
Do numbers, databases, and spreadsheets calm you down? Do you find satisfaction in precision and order? Take these steps to become a bookkeeper.
Step 1: Complete a certificate course
The first step in becoming a bookkeeper is to earn a certificate IV in accounting or bookkeeping courses. This course will teach you how to prepare reports, work with accounting software, and keep records. In order to apply for BAS Agent registration, it is also strongly advised that you complete GST and BAS units within the certificate courses as it is a prerequisite for this course.
Step 2: Get some work experience
You will have the basic skills required to apply for bookkeeping roles once you have successfully completed your Cert IV qualification, but you will be unable to perform BAS-related tasks until you are more qualified. To legally prepare and lodge Business Activity Statements, you will need 1400 hours of relevant work experience, so start knocking on doors to find a registered BAS Agent from whom you can learn, either as a volunteer, intern, or entry-level bookkeeper.
Step 3: Become a BAS Agent
You can now apply to the Tax Practitioners Board to become a registered BAS Agent after demonstrating your experience and knowledge of GST and BAS procedures. While a BAS Agent qualification is not required for a career as a bookkeeper, it will significantly improve your employment opportunities.
Step 4: Get your insurance
Once qualified and registered as a BAS Agent, you will be bound by a code of professional conduct. This code imposes certain obligations, one of which is the requirement that you maintain a certain level of Professional Indemnity (PI) Insurance. This insurance protects Bookkeepers from any losses caused by their clients as a result of the Bookkeeper’s negligence or errors.
Benefits of being a bookkeeper
A diligent bookkeeper will always keep meticulous records up to date. This meticulous recording will not only assist you in supervising your business accounts, but it will also assist you in preparing financial reports or statements when your company is audited, as the process will be much faster and less expensive.
Always Compliant with the Law
A good bookkeeper will always adhere to the most recent legal regulations and ensure that all of your accounts and books are current with any recent legal changes. You can rely on the bookkeeper to correct any errors because he or she holds himself or herself accountable for any work that they do. This saves the bookkeeper time and effort, as well as money for the company.
It is easier to plan
When you have a detailed recording and a better overview of the company’s accounts, it is much easier to plan and predict the future. When you have confidence in your data, you can solve problems quickly and seize opportunities without worrying about miscalculations in the available data. You’ll know exactly what to do and how much time you have to do it, thanks to the balance sheet’s overview of profit and loss evolutions.
Even if you have to wait for the accountant or auditor to finish their reports before finalizing official financial statements, you will always have an updated balance sheet to inquire about the current state of the accounts. You will be able to present this information to any interested party, boosting confidence in both your work as a manager and the company’s overall health.
Better Relations with Banks and Investors
That assurance will undoubtedly improve your business relationships with your investors and shareholders. Furthermore, once banks see how well your business is doing, they will be more willing to provide you with more affordable loans. You can simply show when an investor is interested in your company.
Better Tax Prediction
Although the IRS will require an official financial statement from your business for taxation purposes, you will be better able to forecast the outcome if you have access to thorough balance sheets over time. You can use them to keep an eye out for business trends at your company and to feel more secure about the amount of taxes you’ll have to pay at the end of the fiscal year.
Fastest Financial Analysis
It’s helpful to know that by keeping detailed records, you will reduce the amount of time an accountant will need to analyze your accounts and produce financial statements. This is because bookkeeping is typically less expensive than accounting. This not only reduces accounting costs, but also gives you more time to act on the information provided by the analysis and change any strategies.
FNS40217 CERTIFICATE IV IN ACCOUNTING AND BOOKKEEPING COURSE INFORMATION
The FNS40217 Certificate IV in accounting and bookkeeping course provides the duties performed by employees working as contract bookkeepers, BAS Agents, and employees performing bookkeeping duties for businesses across various industries.
It entails creating and submitting business and instalment activity statements as well as giving taxpayers advice or representing them in interactions with the Commissioner regarding activity statements. These professionals use their theoretical and specialised knowledge and abilities to work independently and use their judgement when completing routine and non-routine tasks.
Regulatory requirements apply to work functions in the occupational fields where this qualification may be used. The Tax Practitioners Board (TPB) requires the registration of individuals who offer a business activity statement (BAS) service in exchange for payment or another benefit. This qualification is currently listed as satisfying the TPB’s educational requirements for registration.
FNS40217 Certificate IV in accounting and bookkeeping course has been accredited by the Australian government. The successful completion of eight (8) core units and five (5) elective units is required for the FNS40217 Certificate IV in Accounting and Bookkeeping. Southern Academy of Business and Technology chose the electives for this qualification to ensure that students achieve a broad range of knowledge and skills in Accounting and Bookkeeping.
After the successful completion of this course, students learn how to perform tasks like: –
- completing Business Activity Statements (BAS)
- operational reporting
- producing non-complex management reports
- setting up and operating a computer-based financial system in the Certificate IV in Accounting and Bookkeeping programme.
- classifying, recording, and reporting accounting data
- creating and maintaining a payroll system
- running a small office and making sure that all applicable legal requirements are met.
Students who succeed in this course may wish to continue their education with a Diploma level of Accounting (FNS50217).
Course Requirements (Entry)
The following are the admission requirements for international students provided by the Southern Academy of Business and Technology:
- You must be at least 18 years old.
- Possess an IELTS score of 5.5 or higher (test results must be no more than 2 years old).
- Have completed the Australian Year 12 or its equivalent.
International students may be exempt from demonstrating English language proficiency if they can provide documented evidence of any of the following:
- The student completed his education in an English-speaking country for five years.
- The student has completed at least 6 months of a Certificate IV level course at an Australian RTO.
- The student successfully completed an English Placement Test.
- The student successfully completed a foundation course in Australia.
- The student has completed their English high school education.
- Students must also attend a course entry interview to determine their course suitability.
Helpful accounting software programs
Here are some accounting programmes to assist you in organising your finances. If you hire a professional, they may also use one of these. Small businesses today require an accounting system that is cost-effective, up to date, and capable of handling all financial tasks required to run their business. Consider one of these free accounting software systems if you’re unhappy with your current system or need to set one up:
GnuCash accounting software is an excellent choice for a company that requires organised and simple bookkeeping. Invoice management, accounts payable and receivable, expense tracking, and payroll are all included in the software.
CloudBooks is an accounting solution for small businesses and freelancers that are hosted in the cloud. It has billing, invoice creation, project management, and time tracking features. CloudBooks is only free for 30 days before charging $10 per month.
Wave: If you are a sole proprietor or run a small business, Wave may be the best fit for you. Accounting, invoicing, and receipts are completely free. There are no payroll features, and you must pay for personal technical support.