Bookkeeping and Record Keeping Basics

Proper bookkeeping is extremely important for the success of a business. If you do not do that, you’d be wasting your money. You’d also not be able to expand your business. The reason why you should design a proper bookkeeping routine is that bookkeeping enables you to manage your business and lets the tax agencies know about your business activity.

Bookkeeping softwares are used by some small scale companies to keep records of their accounts and financial dealings. You can also do that but to you have to be sure that it’s saving you time and you can focus on running your business. It happens that bookkeeping can be more efficiently handled on paper than on bookkeeping softwares that may not be that reliable.

For this purpose, you could hire a bookkeeper. I say, it’s best to hire an efficient bookkeeper for your business because this way you’d have someone to take care of all the financial records for you and help you understand everything about your business records. I have a few tips to give you on hiring a reliable bookkeeper.

Tips on Hiring a Bookkeeper

Unprofessional bookkeepers can cause serious damages to your business. You’d need to be sure that the person you’re hiring is able and can handle your accounts and financial dealings with responsibility. You’d need to know the following things before you hire a bookkeeper.

● First thing you should know is if your bookkeeper Melbourne has enough experience bookkeeping for businesses like yours. He should have a certificate IV in financial services. Professional bookkeepers are a member of one of the many Bookkeeping Associations in Australia.

● Your bookkeeper Melbourne should be able to create easy to comprehend financial reports.
● Make sure that your bookkeeper is comfortable with your accounting system. If not, do not work with him.
● Whether you need a part-time service or a full-time service, you should hire bookkeepers according to your need.
● See if he has a proper insurance or not.
● See how’s his review history. Reviews are not entirely reliable. But it’s okay to still look into them.
● Know where your bookkeeper Melbourne wants to work. Onsite, offsite or remotely.
● Be clear on what you want to pay him.

Your bookkeeper will keep the following basic records of your business for you while you concentrate on running and expanding it.

1. Revenues and Expenses

Your bookkeeper Melbourne would keep a revenue and expenses journal or a ledger to keep a record of the amount of money coming in, and going out and where it is going.continue reading…

2. Cash Expenditures

Bookkeepers account for the amount of capital spent on your business every year. There are two ways to do that. 1) Write a reimbursable cheque or 2)Keep a cash record.

3. Inventory Records

Keeping your inventory records saves you from pilferage. It also helps you keep track of buying trends.


4. Accounts Receivable

This depends on how and when your customers pay you. If they pay you at the time of the delivery of the item, there’s no need of a accounts receivable tracking system. But it they are supposed to pay you later sometime, this is a must! This system helps you keep the history of what your customers owe you.

5. Accounts Payable

In easy words, it’s the opposite of accounts receivable. Keeping a record of what you owe and until what date helps create good credit.
You can look into the webiste, for the best bookkeepers in Melbourne.

Reasons to Switch to Online Bookkeeping Services

Many companies are still hiring a bookkeeper to maintain the books of the business. Normally, these bookkeepers are getting paid like any other employee, and also need to have some benefits along with their salaries. But, what most companies don’t know, is that there’s online bookkeeping services that companies can make use of, that will ensure that all books will be maintained and correct. If you didn’t switch to online bookkeeping services yet, you might want to know more about these reasons. Read more at

Using experts

When you’re using online bookkeeping services like, you will have all the expert advice that you can get. Not only will you know that your books are up to date and correct at all times, you will also have the peace of mind that you have the best possible experts behind you and your business.

Hiring bookkeepers that have experience and that are experts, are normally costing businesses lots of money, and if your business is relatively new, you will not be able to afford to hire a real expert bookkeeper for your business. Except if you’re making use of an online bookkeeping service.

Reasons to Switch to Online Bookkeeping Services

You will have more time for the business

There’s even some business owners that prefer to do their books themselves. They don’t trust anyone else with the books, or they don’t have the necessary money to be able to pay for bookkeepers. And, bookkeeping takes lots of time. Time that a business owner don’t have.

If you’re hiring online bookkeeping company for maintaining your books, you will have more time to spend on the business side of the business and don’t need to spend as much time in front of the books. You will be able to focus to make a success out of the business and you will have the best possible people that’s looking after the books of your business.

Will have the most experienced bookkeeper

It is really important to have the most experienced bookkeeper that will maintain and updating your books regularly. It is really hard to find an experienced bookkeeper that will work in a smaller company, or that will be prepared to take a smaller salary.

Not every business can afford the most experienced bookkeepers, and when you’re hired an online bookkeeping company, you don’t need to struggle with your business with a bookkeeper that doesn’t have any experience in your type of business. Or, even worse, a bookkeeper that doesn’t have any experience in bookkeeping.

Switching to online bookkeeping companies can be a really great decision for any company. The great thing about hiring an online bookkeeping company, is that you will have the best possible bookkeeper’s right at your finger tip, without paying too high salaries. Not all the businesses and companies can hire personal bookkeepers with the best qualifications or experience. However, if you’re hiring a bookkeeper in Melbourne, you will the most experienced and highest qualified bookkeeper’s without worrying about paying salaries at the end of the month.