Bookkeeping may be a very lengthy and time-consuming process, but it is a mandate for businesses worldwide. A company cannot dream of flourishing without proper bookkeeping and accounting. A bookkeeper needs to maintain and produce appropriate transaction records at the required times.
You must hire a proper and professional bookkeeper as bookkeeping is the basis of all business activities. Without bookkeeping, there would be no records of the transactions done by the business. Some skills and qualities must be checked before hiring a bookkeeper.
Bookkeeping may sound boring and a time-intensive process to you, but the business can face heavy losses and ultimately shut down if not done correctly. Before hiring a bookkeeper, you must check whether the bookkeeper possesses certain qualities or not.
A bookkeeper should have expert knowledge of bookkeeping. There is a lot of technical words that untrained people would not understand. It is unnecessary that the bookkeepers have a degree of Certified Public Accountant (CPA) but should understand the basics of bookkeeping. Before hiring a bookkeeper, a complete and thorough check of his accounting and bookkeeping knowledge should be done. If scrutiny is done, you can get a bookkeeper who will be suitable for your business.
This is a fundamental requirement for a bookkeeper. The bookkeeper often assures us that everything is fine with the books of the company, but the reality is entirely different. Even a tiny mistake while recording the transactions may spell disaster for the company. The bookkeeper must inform the management of any discrepancy or error in the books of the company.
3.Keeping Calm during Adversity
Every business goes through highs and lows in the long run. It is at this time that the skills, expertise and sense of calmness are tested. If the bookkeeper remains calm and performs the proper analysis of the situation, then the bookkeeper would be very useful for the business in the long run.
If a bookkeeper gives us the feeling that the business can rely on his presence 24×7, the bookkeeper should be held on. He should always be accessible to the company in case anyone wants to express any concerns or issues. This quality is a must in a person providing outsourced accounting and bookkeeping services.
The financial accounting environment is very dynamic and keeps on continuously changing. According to these rules, a bookkeeper must constantly be updated with the latest rules and regulations and change his workings. If he is unable to change with time, in such a case, the bookkeeper becomes obsolete, and the business faces heavy losses.
In today’s world, not being computer literate can have enormous repercussions for the bookkeeper and, in the long run, for the business. With advancements in technology, most of the work is now done online. There is also an increase in the number of state of the art accounting and bookkeeping software. A bookkeeper must be ready to spend time in front of a laptop and understand how to operate the different accounting and bookkeeping software.
It is of utmost importance that the person hired has subscribed to the theory of professionalism. If the bookkeeper is not professional enough, the business may have to face the consequences. The management must discuss their vision for the future of the company with the hired bookkeeper.
Important Points for the Bookkeeper
Once you hire a bookkeeper, he should understand the management’s vision for the company. He should adequately understand that what is the expectation of the direction from the bookkeeper. You should discuss certain things with your bookkeeper and discover a course of action that the bookkeeper should take for the growth of the business.
Duplication of Work
The bookkeeper should have proper records of all the transactions conducted by the business. This is to avoid double entry of single marketing done. If there is a double entry for one transaction, there would be an imbalance in the cash flow.
The bookkeeper should be clear about managing the current cash flow and what steps to increase the business’s current operating cash flow. He will have to understand the workings of the company to give out the correct financial advice.
The bookkeeper should maintain proper records of all the employees on the payroll. Any mistake in the form will lead to a disgruntled employee with low motivation to work.
To file taxes smoothly and straightforwardly, all the related documents must be kept ready. The bookkeeper must also discover new ways to save taxes and file taxes on time.
It should be made clear that the company’s management and the hired bookkeeper are on the same page. If everyone will have the same vision for the company, then the company is destined to flourish.
The accounting and bookkeeping services of JAXA auditors can help your company to grow and achieve new heights of success. JAXA has teams of professional and experienced accountants and auditors who will nurture your company and assist in its development. We also many other services such as Tax services, payroll services etc. For more details on the various services we provide, do contact us – we’d be happy to help.
Ten skills you have that will make you a good Bookkeeper
Bookkeeping is more than being good with numbers. It encompasses many soft skills and other abilities which wouldn’t spring to mind when you think of accountancy or bookkeeping.
Bookkeeping is the gateway to the accounting sector. If you’re looking to work your way up in the industry, below are the top 10 skills that will make you a good bookkeeper. Also, if you’re considering a career in bookkeeping but are just starting, it would be beneficial to review some of the online AAT bookkeeping courses we offer, including:
- AAT Access Award in Bookkeeping
- AAT Foundation Certificate in Bookkeeping (Level 2)
- AAT Advanced Certificate in Bookkeeping (Level 3)
OK, we know we said it’s more than being good with numbers, but being good with numbers is still an essential part of being a good bookkeeper. Numerical skills are crucial when bookkeeping and accounting for obvious reasons, whether it be balancing the books or adding up the total sum of a series of transactions. Additionally, subtraction, multiplication, and division are all skills you should have, along with the confidence to use your ability in these areas.
Your employers and clients will set your deadlines and you also need to work to Tax Return and VAT deadlines, as well as Financial Year End deadlines. Organising your time around these will not just shape your career, but how competent you are and how potential clients/employers view your services. You will need to plan your months and years, and how you work will depend on these tight deadlines.
Bookkeepers need to present information in a professional manner and a way that is understandable to clients both in person and via electronic communication. Depending on the size of the organisation you work for, you will also need to communicate effectively with other people in your department and express yourself to your team and colleagues in other departments.
4. Attention to Detail
You are dealing with a company/client’s financial data, and so you need to ensure all the data you are logging is accurate down to the last penny. This is so you can monitor financial transactions and make specific economic policies that are being adhered to. This will ensure your career isn’t called into question and you are following all moral obligations and measures of integrity.
Discipline comes in many forms. It comes in stress management and how you work under pressure and handle yourself in a professional environment. An entire company’s financial situation can rest on your integrity and morality in dealing with their money. If fallen into the wrong hands, this could be disastrous for the company and your reputation should you be caught. Heed this warning!
Bookkeeping is the start of a solid career path in the accounting industry and provides a good foundation with which to begin. In order for this career to be successful, you need to showcase good commitment levels to get the job at hand complete, with minimal costs and use of resources to your employer or client.
7. Computer Skills
The majority of bookkeeping nowadays is managed with computerised accounting systems – a stark contrast from the traditional method of writing down amounts and figures. Manual bookkeeping still exists but has been overtaken by its software counterpart as a more efficient way of handling bookkeeping tasks. Systems like Sage and Quickbooks are two world-renowned examples with their simplicity and user-friendliness. Microsoft Excel and primary computing navigation are crucial skills a bookkeeper needs to possess to carry out their duties.
If you find any irregularity or an anomaly in a system or a set of accounts, it will be down to you to discover where the problem lies. Identify it and how you can act upon it without compromising the output, the data will provide you. This will also test your judgement as you work out the best way to solve the issue.
9. The Bigger Picture
Being able to “see the bigger picture” is vital. Knee-jerk decisions lead to potential danger, which would be best avoided if you take a step back and think about the possible outcomes. Moving money between accounts may balance the books in one, but what happens to the deficit? Will it be replaced sufficiently? Are there potential incomings that would suit the first account, meaning you’ll break even?
This comes from qualifications and knowledge. Prove your expertise, the abilities you have and judgement to any potential clients or employers that may need someone of your skills to assist with their accounts.
What are the qualities of a bookkeeper?
Bookkeepers are the lifeline of a business that stabilise its financial position with their skills and expertise. They set the momentum of progress into motion through their correct tax filing and cash flow management.
However, you need to find the best bookkeeper in Melbourne so that your organisation is not affected by an amateur’s inadequate knowledge. Thus, whether you are hiring a bookkeeper for the first time or looking for a replacement, you must know the qualities you need to identify.
A professional bookkeeper must have specific talents and capabilities to take charge of the books and assist with financial decision making. With a competent worker on your side, you can stop worrying about the capital and concentrate on your business growth in Melbourne. Thus, here is a list of the qualities that a good bookkeeper must possess to help you find the right one.
1. Organisation and Management Skills
Bookkeepers must be adept at orderliness as they have to keep the books arranged and up-to-the-minute at all times. Although most of the work has become automated with accounting software, the professionals need to keep a close watch on the incomings and outgoings.
They must have excellent management aptitude to work with heaps of data without any error and with focus. They must quickly interpret all the reports being generated by the system and draw inferences that can be shared with the board members.
They should identify the weak products that are eating up the capital and offering limited returns in the Melbourne markets. Also, they must be able to recognise the projects that can generate maximum revenue. They must be able to finish everything promptly.
2. Industry Experience and Qualification
While looking for the right candidate, you will get many applications from qualified individuals in Melbourne. However, you should not merely get impressed by degrees and certificates.
An ideal bookkeeper must have hands-on industry experience and have worked in the specific sector to have a deep understanding of the industry’s challenges and strengths.
For instance, if a bookkeeper has experience working in the food sector, he may not be suited for the banking sector. A person from the same background will give the best insight and advice for financial decision making.
He will be familiar with the tax laws and the trade tricks and will require the most miniature training to fit into your Melbourne-based organisation.
3. Credibility and Trustworthiness
You will be putting all the sensitive and classified information about your company into an employee’s hands, so ensure that you have found the right person for the responsibility.
He must transparently provide all the information regarding the bills and taxes to the management and warn you against impending financial challenges. He should honestly speak about the opportunities that can be leveraged by the business to prosper and find out ways of generating more profits.
The bookkeeping company should not be working in alliance with a competitor or leaking confidential data that can harm your business. You must do a proper background check to ensure that they have a clean record and have worked with known industry brands in the past. Contact the references in Melbourne and ask for feedback to be entirely sure.
4. Technically Skilled
The current bookkeeping tasks and responsibilities need the utilisation of cloud-based accounting software. The traditional methods of data entry have become obsolete and are no longer in use in Melbourne.
Thus, the candidate must be capable of handling all the latest digital platforms efficiently. The bookkeeper must prepare a sound bookkeeping system that makes everything systematic and organised.
A variety of software is available these days, and he must be aware of using them to be quick and efficient. Also, he must be mindful of the latest technical developments which can be implemented in the organisation to keep it on par with the competition and improve productivity.
The professional must be ready to upgrade his skills whenever required and be aware of all the industry’s latest regulations and tax obligations.
5. Communication and Relationship Management
The ability to communicate and connect effectively with other team members and the top management is essential for a bookkeeper. It is needed to maintain a friendly rapport with other workers, vendors and clients.
The bookkeeper has to be in constant touch with the board members to update them about its financial health. Good communication skills come in handy during invoicing and following ups with clients in Melbourne.
A professional can make polite requests to avoid straining the relationship with a loyal customer. It will help speed up the payment so that the cash flow is managed perfectly in the company. He will also be communicating with the tax office in Melbourne and thus should be persuasive and authoritative while being gracious at the same time.
6. Ability to Handle a Crisis
The bookkeeper must be proficient in working without any inhibitions during distressing periods. Every company goes through ups and downs, and the bookkeeping professionals must be prepared to tackle all adversities through acumen.
They must offer invaluable advice and support to the business owner during a financial crisis and go the extra mile to pull the business out of the testing situation. They should have a problem-solving approach towards work and should not procrastinate.
The bookkeeper must promptly jump into action whenever he recognises a potential threat and nips the problem in the bud before it snowballs into a full-blown crisis.
7. Time Management
Every bookkeeper should possess this skill as accounting and management of books is a laborious and time-consuming task. The professional must prioritise highly significant tasks and should be able to finish them on time.
They must be aware of the payment deadlines and ensure the transactions are completed without incurring any late payment penalties. Also, they must have prepared the reports for submission before the last date provided by the ATO and file taxes in Melbourne before the deadline.
If they have a team of workers under them, then they should be able to delegate efficiently and appreciate their subordinates to boost their morale and make them efficient. If they are working as a third-party bookkeeper, they should be easily accessible by the company and be ready with the required information.
Suppose you have been looking for a professional and expert bookkeeper in Melbourne. In that case, you must make sure that you are making the right decision by judging them on all the parameters mentioned above. If they have all these qualities, you can hire them to get the best financial advice and service.