Importance of Bookkeeping and the Related Discussion

Australian Bookkeepers Association (ABA) is the associated which was incorporated with the objective of advancing the reason for effective bookkeeping in Australia.

Bookkeeping is the first step for maintaining the books of accounts of a business. However, the rules of this subject are not the same all over the globe. Every country has its own set of methods and principles that are followed for keeping the books and records. For example, you can include some features of taxation in your bookkeeping software and you can maintain your accounts according to your state law.

Why Is Bookkeeping Important?

Bookkeeping is a very crucial part while maintaining accounts. The major functions of a bookkeeper include;-

  • Maintaining financial records of an organization or business
  • Monitoring each and every transaction
  • Ensuring accuracy in the financial statements
  • Updating records and preparation of necessary reports for managers and supervisors
  • Taking care of the invoices, bills and prepare accounts for tax purposes

So, we can see that bookkeeping is the method of classifying various data in one place and you can keep records along with your financial transactions to prepare useful reports. These reports will help to make important decisions by the top-level management. A bookkeeper is also responsible for verifying receipts, payments, reconciling the bank accounts, and monitoring the overdue accounts. The primary book where all the daily transactions are written by the respective accountant is termed as General Ledger. A bookkeeper is entrusted with posting all the transactions from the journal to the ledger, and he can manage or maintain all financial activities by using a booking keeping software. Plus, you can change the program of such bookkeeping software and customize them according to your needs.

Requisite Qualification for Becoming a Bookkeeper in Australia

Bookkeeping is the primary method for record-keeping. However, to become an efficient bookkeeper, you should possess the requisite skills and knowledge. In Australia, you have to qualify a certified course to become an eligible bookkeeper.

The Various Steps Involved To Become An Eligible Certified Bookkeeper In Australia Are As Follows:

  • Completion of Certified Course, and learn about the multiple methods for the preparation of reports, and you need to work with different accounting programs. GST and BAS unit completion are also essential for becoming a registered BAS agent.
  • Gain work experience after obtaining the Cert IV certification and you must know about the basics required to be implemented in the professional grounds.
  • Register as a BAS agent by applying to the Tax Practitioners Board and demonstrate the expert knowledge that you have gained so far. This will pave the way for better employment opportunities.
  • Getting insurance will indemnify you as a bookkeeper from any losses that may arise due to any client. After registering as a BAS agent, a bookkeeper has to follow a special Code of Conduct. Maintaining Professional Indemnity (PI) Insurance at a certain level is one of the requirements of this code.

The course on Accounting and bookkeeping involves three different specialization areas. You need to learn the following things to pass the Level 2:

  • Bookkeeping
  • Accounting
  • Manual and Computerized Bookkeeping

How Much Can You Expect To Be Your Salary By Becoming A Bookkeeper?

In Australia, per year, the estimated salary for a bookkeeper is $61,828 approximately. However, it varies from one year to the next. The tenure of a bookkeeper is generally of 1-3 years. However, large businesses can also recruit you as a permanent employee because they need to maintain their daily transactions. Plus, you can prepare their inventory.

Australian Bookkeepers Association (ABA) is the associated which was incorporated with the objective of advancing the reason for effective bookkeeping in Australia. It is the professional organization for Australian bookkeepers for the BAS agents and established by the Tax Practitioners Board.

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