How to know if your bookkeeper is any good?

by in Blog

Have you tried to look at the books and you can’t understand anything? are you sure your bookkeeper is doing a great job? can you tell if you got a star? or you got a professional that’s no good. 

What does a Bookkeeper do? Bookkeeper

First, let’s write about all the things a bookkeeper does, I’ll elaborate each of them.

  • Duble entry Bookkeeping;
  • Payroll;
  • Account receivables;
  • Accounts Payables;
  • Collection;
  • Preparation of BAS/IAS/FBT 
  • Management accounting;
  • Using more than one accounting packages; 
  • Ad Hoc activities;

Duble entry bookkeeping:

This task is the most basic of all bookkeepers tasks. for centuries, the double entry method was the order of the day. it provides a more clear way to understand the business financials. this method helps us see how the business operations flow from the profit and loss into the balance sheet. Bookkeepers must understand the fundamentals of any transaction. what type of transaction goes to debit. what goes to credit. if your bookkeeper struggles with that expect many problems that will show their ugly face. 


This task is the most confidential part of their work. here not the skill is the order of the day, but rather the integrity of the person performing this task. as a general rule, the more low level your bookkeeper is, the more risk you can expect for this task. The technical side of payroll demands a basic knowledge of income tax. the ability to check the calculation. the ability to understand super laws. the ability the understand leave and relevant laws of leave. and understand the specific industry focus of leave.  

 Accounts receivables:

This task is the most important part of any business. without revenues, a business will fail. the role of the bookkeeper is to record the sales invoices correctly. this is very important. the right date helps the income to be collected. the right amount and customer help prevent late collections. all will affect cash flow. 

Accounts Payables:

This task helps your operations. your suppliers are your partners. they help you create your product. without them, you can’t trade. you must maintain good business relationship with them. our books must be identical to those of our suppliers. the bookkeeper here must be alert to this fact.   


This is an art. the ability to treat your customer good while collecting money is rare. clients are assets. they must be treated this way. (this is the way they are treated in big companies). if your bookkeeper is a good collecting officer. then you have stroked gold. because this skill can’t be thought. it’s either you have it or not.   

Preparation of BAS/IAS/FBT:

This is the ability, to sum up, all the bookkeeping information into the right places on the report. if you did it all right on the bookkeeping level you’re fine. in xero, it’s basically running a report. in MYOB is running 2 reports. but this is just data entry no more.    

Management accounting:

I assume only 5%-7% of bookkeepers understand this part. this part is not data entry! you must understand how the numbers support the business. when the numbers raise a flag. when it’s time to explain what you see to the owner. and what are the implications of the numbers? it’s about managing the business. not the operation.  

Using more than one accounting packages:

Your bookkeeper must know of all big accounting packages. he must be great in Xero, MYOB, QuickBooks, Quicken, and SAP. your bookkeeper shouldn’t tell you what to choose! he needs to be able to use them all. why? because he needs to understand the theory behind the program. you see, the program just follows the accounting rules. if all your bookkeeper know is how to use MYOB, he’s not a good bookkeeper. he has focused on the software. or majored in minor things. the knowledge of accounting as a language is more important. the better he understands accounting the better he is as a professional.   

Ad Hoc activities:

This refers to all the things that support the bookkeeping function. it involves sending professional emails. understanding what clients want. listening to stakeholders. understanding and supporting the strategy. filtering information from the junk. helping and using other departments to achieve success. 

For conclusion:

As the profession is more widespread. we have replaced quality for quantity. you need to demand much more today from your bookkeeper. you need to demand business understanding. he must understand the information he sees. he must be able to raise a flag about performance. he needs to be able to read between the lines. but the most important thing: he must be able to help the business perform better.