Qualities Needed in a Bookkeeper

Although it can be a highly drawn-out and time-consuming procedure, businesses all over the world are required to maintain accurate books of account. Without accurate bookkeeping and accounting, a business has no chance of achieving even moderate levels of success. A bookkeeper's responsibilities include the upkeep and production of accurate transaction records at the prescribed intervals.

Since keeping accurate books is fundamental to running a successful business, you will need to seek the services of a qualified and experienced bookkeeper. Without proper bookkeeping, there would be no way to keep track of the financial dealings that the company has made. Before selecting a bookkeeper, it is necessary to verify the presence of certain abilities and attributes.

If not done correctly, bookkeeping may seem like a tedious and time-consuming process to you; nevertheless, if it is not done right, the company could incur significant losses and finally fail. In order to choose whether or not to hire a bookkeeper, it is necessary to determine whether or not the bookkeeper possesses particular attributes.

1. Expertise

Knowledge of bookkeeping at a very high level is required of a bookkeeper. There are a lot of specialised terms that are beyond the comprehension of the average person. The bookkeepers do not need to have a Certified Public Accountant (CPA) degree, but they should be familiar with the fundamentals of bookkeeping.

Before choosing a bookkeeper, it is important to evaluate his level of expertise in accounting and bookkeeping on a comprehensive and detailed scale. If you look carefully, you should be able to find a bookkeeper who is appropriate for the needs of your company.

2. Honesty

This is a very necessary skill for a bookkeeper to possess. However, despite the frequent reassurances we receive from the bookkeeper that everything is in order with the company's records, the reality is quite different. During the process of documenting the transactions, even the smallest error could be catastrophic for the organisation.

Any inconsistency or inaccuracy that the bookkeeper discovers in the company's books must be reported to management immediately.

3. Keeping Calm during Adversity

In the long run, every company will experience both prosperous times and difficult times.

At this point, one's abilities, level of experience, and capacity for composure are put to the test.

If the bookkeeper is able to maintain composure and do an appropriate analysis of the situation, then the bookkeeper will prove to be of great assistance to the company in the long term.

4. Easily Accessible

If a bookkeeper gives us the impression that the company can depend on his presence 24 hours a day, seven days a week, then the bookkeeper should be retained. It is imperative that he is constantly available to the organisation in the event that anyone has questions or problems that need to be addressed.

A person who provides outsourced accounting and bookkeeping services absolutely needs to possess this quality.

5. Remains Updated

The environment of financial accounting is quite dynamic, and it is always shifting to accommodate new developments. According to these guidelines, a bookkeeper is required to be current on all of the most recent rules and regulations and to adapt his methods on a consistent basis.

In the event that he is unable to adapt to changing circumstances, the role of the bookkeeper will become outdated, and the company would be subject to significant financial losses.

6. Computer Literate

In the modern age, a bookkeeper's lack of computer literacy can have huge implications not only for the bookkeeper but also, in the long run, for the company. As a result of advances in technology, the majority of the work may now be completed online. In addition, there has been a rise in the quantity of cutting-edge software for accounting and bookkeeping in recent years. A person who keeps books needs to be comfortable spending extended periods of time in front of a computer and should be familiar with the various accounting and bookkeeping programmes.

It is of the utmost importance that the individual employed adheres to the principles outlined in the professionalism idea. If the bookkeeper does not maintain an appropriate level of professionalism, the company may be forced to deal with the repercussions. The newly hired bookkeeper needs to have a conversation with the management about their goals for the future of the organisation.

Important Points for the Bookkeeper

After a bookkeeper has been hired, you should ensure that he is aware of the management's objectives for the company. It is necessary for him to have a sufficient understanding of what the bookkeeper expects from him in terms of direction. You need to have a conversation with your bookkeeper about a few different topics and figure up a plan of action for the bookkeeper to follow in order to facilitate the expansion of the company.

Duplication of Work

The bookkeeper is responsible for maintaining accurate records of all the transactions that are carried out by the company. Because of this, we can avoid making a double entry for a single marketing effort. The cash flow would be unbalanced if there was a double entry for a single transaction because of the double-entry.

Cash Flow

The bookkeeper needs to have a good understanding of how to manage the current cash flow as well as the activities that may be taken to boost the company's current operating cash flow. In order for him to provide sound financial advice, he will need to have a solid understanding of how the firm operates.

Payroll

The bookkeeper is responsible for keeping accurate records of all of the workers that are on the payroll. If there is even one typo on the form, you may expect the person to be irritated and unmotivated to do their job.

Tax filing

Having all the necessary paperwork on hand will make the process of filing taxes much simpler and less complicated. The bookkeeper is responsible for finding new ways to reduce tax liability and ensuring that returns are filed on schedule.

It is imperative that it is made abundantly apparent that the management of the firm and the hired bookkeeper are on the same page. If all of the employees have the same vision for the company's future, there is a good chance that the business will be successful.

The Hillyer Riches auditors provide services in accounting and bookkeeping that can assist your firm in expanding its operations and achieving greater levels of success. Hillyer Riches is staffed with teams of certified public accountants and auditors who have years of experience and are professionals in their fields. These individuals will assist in the growth of your firm. We also provide a large number of other services, including tax services, payroll services, and many more. Please don't hesitate to get in touch with us if you have any questions on the wide range of services that we offer; we are more than willing to assist you.

Ten skills you have that will make you a good Bookkeeper

Keeping accurate books requires more than just a head for numbers. When you think about accounting or bookkeeping, you probably don't immediately think of many of the soft skills and other qualities that are included in this field.

The field of accounting may only be entered through the door of bookkeeping. The top ten qualities that distinguish a skilled bookkeeper are outlined below for your perusal in the event that you have aspirations of climbing the corporate ladder. In addition, if you are interested in a career in bookkeeping but are just getting started, it might be useful for you to look at some of the online AAT bookkeeping courses that we provide. Some of these courses are as follows:

• AAT Access Award in Bookkeeping
• AAT Foundation Certificate in Bookkeeping (Level 2)
• AAT Advanced Certificate in Bookkeeping (Level 3)

1. Maths

It's true that being good with numbers is only one aspect of being a good bookkeeper, but being excellent with numbers is still a crucial part of the job. Bookkeeping and accounting are two fields in which having strong numeracy skills is absolutely necessary, for reasons that should be self-evident.

These skills are required for tasks such as ensuring that the books are in balance and calculating the aggregate value of a number of different transactions. In addition, you should be competent in the fields of subtraction, multiplication, and division, and you should also have the self-assurance to make use of your skills in these spheres.

2. Organisation

Your dates will be determined by your employers and clients, and in addition to those, you will need to adhere to the deadlines for filing your tax return and paying your VAT, as well as the deadlines for the end of the fiscal year.

If you organise your time around these, it will not only form your career, but it will also impact how competent you are and how potential clients or employers regard the services you provide. You will need to make a plan for the months and years ahead of time, and the manner in which you work will be determined by the strict deadlines.

3. Communication

Bookkeepers have a responsibility to convey information to clients in a manner that is both professional and intelligible, whether they are meeting with clients in person or communicating with them electronically. You may be required to effectively communicate with other people working in your department as well as convey yourself to your team as well as colleagues working in other departments, depending on the size of the organisation for which you are employed.

4. Attention to Detail

Because you are working with the financial data of a firm or customer, you need to be sure that every piece of information you are logging is accurate, right down to the last penny. Because of this, you will be able to keep an eye on monetary transactions and formulate precise economic policies, both of which will be adhered to.

This will ensure that no questions are raised about your professional standing and that you are adhering to all of the moral commitments and integrity standards.

5. Discipline

There are a lot of different approaches to discipline. It comes down to how well you can manage stress, as well as how well you can perform under pressure and conduct yourself in a professional setting.

The integrity and morality with which you handle a company's money can have a significant impact on the company's overall financial status. Should you be detected, this may be extremely damaging to both the firm and your reputation, especially if it were to fall into the wrong hands. Pay attention to this caution!

6. Commitment

The practice of bookkeeping is the first step on a rewarding career path in the accounting sector and lays a solid groundwork from which to launch one's professional endeavours. If you want to be successful in this line of work, you need to demonstrate that you have a high level of devotion to completing the tasks at hand while keeping your company or client's costs and resource usage to a minimum.

7. Computer Skills

In sharp contrast to the more conventional practice of hand writing down figures and sums, the majority of bookkeeping in modern times is handled through the use of computerised accounting systems. Although manual bookkeeping is still practised today, it has been largely superseded by its software-based analogue as the more effective means of managing bookkeeping responsibilities.

Systems such as Sage and Quickbooks are two examples that are well-known throughout the world for their ease of use and straightforward design. In order to carry out their responsibilities effectively, bookkeepers need to be proficient in Microsoft Excel as well as basic computer navigation.

8. Problem-Solving

If you discover any kind of abnormality or irregularity in a system or a collection of accounts, it will be up to you to figure out where the issue is coming from and how to fix it. Determine what it is and how you can respond to it in a way that does not affect the output that the data will produce for you. As you figure out the most effective solution to the problem at hand, this will put your judgement to the test.

9. The Bigger Picture

It is essential to have the ability to "see the wider picture." Decisions made on the spur of the moment put people in potentially dangerous situations, which can be avoided by pausing for a moment to gather one's thoughts and consider the range of outcomes. If money is moved from one account to another, the books may be balanced in that account; nevertheless, what happens to the deficit? Will there be a suitable replacement for it? Exist the possibility of incomings that would fit the first account, which would suggest that you would reach a point of financial equilibrium?

10. Expertise

This is according to the individual's credentials and level of knowledge. Demonstrate to any prospective customers or employers who could need someone with your qualifications to assist them with their accounts your level of competence, the abilities you possess, and the judgement you have.

What are the qualities of a bookkeeper?

Bookkeepers are an organization's most valuable asset because of their ability to stabilise a company's financial status using their knowledge and skills. They set the wheels in motion for progress by correctly filing their taxes and managing their cash flow, which led to the movement of those wheels.

However, in order to protect your company from the damage that could be caused by an amateur's lack of basic expertise, you need to hire the best bookkeeper in Melbourne. Therefore, whether you are looking to hire a bookkeeper for the first time or are trying to find someone to replace the one you currently have, you need to be aware of the attributes you should look for.

To be able to take responsibility of the books and contribute to the process of making financial decisions, a professional bookkeeper is required to possess a particular set of skills and capabilities. If you have a capable employee on your team, you won't need to worry about the money and can instead focus your attention on expanding your business in Melbourne. To assist you in finding the perfect bookkeeper for your business, the following is a list of the characteristics that a good bookkeeper should have.

1. Organisation and Management Skills

Because they are responsible for maintaining the records in an organised and up-to-date manner at all times, bookkeepers need to be skilled at maintaining order. Despite the fact that accounting software has made the majority of the work more automated, the experts still need to keep a tight eye on the payments coming in and payments going out.

They need to have strong management skills in order to work with large amounts of data without making any mistakes and maintain their concentration. They have a limited amount of time to analyse all of the reports that are being produced by the system and come to conclusions that can be communicated to the board members.

They need to discover the low-quality products that are consuming the available cash in the Melbourne marketplaces while providing just a small return on investment. In addition to this, they have to be able to identify the initiatives that have the potential to bring in the most money. They have to be capable of finishing things in a timely manner.

2. Industry Experience and Qualification

You should expect to receive a lot of applications from eligible people living in Melbourne while you are searching for the ideal applicant. You shouldn't, however, let things like diplomas and certifications be the only thing that impresses you.

An ideal bookkeeper will have direct experience working in the industry they are going to be keeping the books for, as well as previous employment in that industry so that they have a comprehensive knowledge of the business's opportunities and challenges.

For example, a bookkeeper who has previous experience working in the food industry is probably not the best candidate for a job in the banking industry. A person who comes from the same experience as you will have the most relevant insights and soundest guidance for making financial decisions.

Because he is already knowledgeable about financial regulations and business practices, he will need only the smallest amount of training to be able to function effectively in your Melbourne-based organisation.

3. Credibility and Trustworthiness

Because you will be placing all of the private and confidential information concerning your firm in the hands of an employee, you need to make sure that you have selected the appropriate individual to take on this job.

He is required to present the management with all of the facts regarding the bills and taxes in an open and transparent manner, as well as warn you of coming financial issues. It is necessary for him to provide an open and forthright account of the possibilities that exist for the company to thrive and discover new avenues for increasing its level of profitability.

The company that does your bookkeeping should not be collaborating with a rival business or disclosing secret information that could be detrimental to your company. You are required to conduct a thorough background check on the individual in question to verify that they have a spotless history and have previously collaborated with well-established names in the business. If you want to be absolutely certain, you could get in touch with the references in Melbourne and ask for comments.

4. Technically Skilled

Cloud-based accounting software is required in order to complete the various tasks and obligations currently associated with bookkeeping. The conventional approaches to data entry are now considered archaic and are not utilised in any way in the city of Melbourne.

Therefore, the candidate needs to demonstrate that they are adept at using the most recent digital platforms effectively. The bookkeeper is responsible for putting together a reliable bookkeeping system that will make everything organised and systematic.

These days, there is a wide selection of software available, and in order for him to be quick and efficient, he needs to be knowledgeable of how to use each of these programmes. Additionally, it is necessary for him to be aware of the most recent advancements in technology that are able to be incorporated into the company in order to maintain the company's productivity levels at a level comparable to that of the competitors.

The professional is expected to be able to update his skill set whenever it is necessary and to be familiar with all of the most recent legislation and tax obligations that pertain to the industry.

5. Communication and Relationship Management

It is crucial for a bookkeeper to have the capacity to communicate and connect effectively with other members of the team as well as the upper management. It is essential to do so in order to keep up a cordial relationship with the other employees, vendors, and customers.

It is necessary for the bookkeeper to maintain consistent communication with the board members in order to keep them apprised of the organization's current financial status. Invoicing and following up with clients in Melbourne are two activities that benefit greatly from having strong communication skills.

To prevent the connection with a devoted client from becoming strained, a trained expert can make courteous requests. It will assist in accelerating the payment, which will contribute to the company's cash flow being managed effectively. Additionally, he will be speaking with the tax office in Melbourne, and as a result, he should be convincing, authoritative, and gracious all at the same time.

6. Ability to Handle a Crisis

The bookkeeper needs to be capable of working through stressful situations without any inhibitions, which is a requirement. Every business goes through good times and bad, and those who work in bookkeeping need to be mentally and emotionally prepared to deal with any challenge that may arise.

During a time of severe financial strain, they are obligated to provide the owner of the company with vital counsel and support and to go above and beyond to rescue the company from the difficult situation. They shouldn't put off getting things done and should focus on finding solutions rather than putting things off.

The accountant is obligated to take immediate action anytime he recognises a potential hazard in order to "nip the problem in the bud" and stop it from developing into a full-blown emergency situation.

7. Time Management

Since keeping the books and doing the accounting is a tedious and time-consuming operation, every bookkeeper ought to be equipped with this competence. The expert is required to give high-priority jobs the highest possible priority and should be able to complete those assignments on time.

They are responsible for being aware of the payment deadlines and ensuring that all transactions are carried out without resulting in any penalties for late payments. In addition to this, they are required to have the reports ready for submission by the ATO on or before the final date indicated and to have their tax returns filed in Melbourne on or before the deadline.

If they have a team of workers reporting to them, then they need to be able to allocate tasks effectively and show appreciation for their subordinates in order to keep their workers motivated and increase their productivity. If they are acting as a third-party bookkeeper, the company should find it easy to get in touch with them and they should have all of the necessary information at the ready.

Conclusion

Assume for a moment that you have been looking for a qualified and experienced bookkeeper in the Melbourne area. If this is the case, you have an obligation to ensure that you are making the correct choice by evaluating them based on each of the criteria described earlier. You should consider hiring them if they possess all of these attributes so that you may receive the greatest possible financial advice and service.