What Does a Bookkeeper Do

What does a bookkeeper do? The short answer

A bookkeeper records and reconciles what actually happened in your business so your numbers are accurate, current and ready for decision‑making and compliance. In practical terms, that means capturing bills, sales and bank activity, coding GST correctly, managing who you owe and who owes you, preparing payroll and super, and keeping your accounting file clean for BAS and year‑end tax.

Work backwards from your need: do you want a clean‑up, ongoing weekly processing, quarterly BAS, payroll set‑up, or better reports? The right scope flows from the outcome you want.

Core duties of a bookkeeper in Australia

• Transaction capture and coding: bring in bank feeds, upload receipts/invoices, allocate income and expenses to the right accounts and GST codes.
• Bank and account reconciliations: match transactions to statements so balances are accurate each month.
• Accounts payable: process supplier bills, schedule payments, manage credits, and keep aged payables tidy.
• Accounts receivable: raise invoices, allocate receipts, send statements, and follow up overdue accounts.
• Payroll support: set up employees, process pay runs, handle allowances/deductions, Single Touch Payroll (STP) and superannuation.
• BAS readiness: review GST coding, fuel tax credits if relevant, and prepare activity statements for on‑time lodgement.
• Month‑end checks and reporting: review suspense/rounding, lock periods, and produce P&L, balance sheet and cash flow views.
• Year‑end handover: provide reconciliations, workpapers and reports to your tax accountant to streamline tax returns.

If you expect advice on GST treatment or want someone to lodge BAS, choose a BAS‑registered bookkeeper or confirm whether you need an accountant.

Bookkeeper, BAS agent or accountant — who does what?

These roles often overlap, but they have different authorities and focus areas:

Not sure which you need? Compare options here: BAS agent vs accountant or go straight to accounting services.

How bookkeeping works month to month

1. Weekly: import bank feeds, code transactions, attach documents, send invoices and pay approved bills.
2. Fortnightly/Monthly: run payroll, lodge STP, pay super, reconcile bank/credit cards/loans and fix exceptions.
3. Quarterly: review GST coding and prepare/lodge BAS, tidy aged payables/receivables, lock prior periods.
4. Annually: stocktake and adjustments if needed, provide reconciliations to your tax accountant, and roll the file.

The rhythm can be dialled up or down based on transaction volume, seasonal cycles and reporting needs.

Software a bookkeeper uses

Most Australian small businesses use Xero, MYOB or QuickBooks with add‑ons for bills, expenses and time‑tracking. A good bookkeeper will recommend a workflow, not just an app list: source documents in, approvals, coding rules, reconciliations, and reporting.

• Xero: robust bank feeds, STP, Hubdoc/files, strong add‑on ecosystem.
• MYOB: inventory and payroll depth, local support, solid BAS tools.
• QuickBooks Online: sharp invoicing and mobile, competitive pricing.

Costs: how much does bookkeeping cost?

Costs depend on transaction volume, payroll complexity, cleanup vs steady‑state, and whether BAS lodgement/advice is included.

• Starter/sole trader: light monthly processing and quarterly BAS review.
• Growing business: weekly processing, payroll, A/R and A/P management, monthly reports.
• Established team: multi‑entity, inventory/projects, board‑level reporting and cash flow management.

Pricing can be hourly or fixed‑fee packages. Ask how scope changes are handled and what triggers a review.

Common mistakes a bookkeeper helps you avoid

• Incorrect GST coding on mixed‑supply expenses and imported services.
• Missing superannuation or late STP submissions for payroll.
• Unreconciled clearing accounts and duplicated bank feed entries.
• No source documents attached, causing ATO substantiation risk.
• Overdue BAS and ATO penalties due to irregular processing.

What to compare before you commit

Best next steps

Define your outcome: “clean up 6–12 months and lodge BAS”, “set up payroll and super with STP”, “weekly processing and monthly reports”, or “migrate to Xero”.

Then shortlist: see bookkeeping services, check bookkeeper vs accountant, and confirm if you need a BAS agent. If you prefer help choosing, use the form below.