get this question often and last week I got to answer it twice!
Bookkeeping is easy if you don’t know what you’re doing, and it is a lot complex if
you do know what you’re doing.
If you are in business; you should have your “set of books” where you record every transaction you make; one of the main things you would want to keep record of, is money in and money out of the business.
Why? Simply because cashflow monitoring is crucial for business survival. (And that’s only one of the many reasons)
Basic Bookkeeping tasks would be to:
1. Keep record of all you receipts for your expenses
2. Pay your bills on time and record the transactions
3. Invoicing your clients/customers
4. Making sure the money hits your account
5. Reconciling your bank accounts (Matching what is on your bank statement to the relevant purchase, sales or expense that the business has incurred)
6. Making sure your accounts balance at the end of each period
Then there are more complex Bookkeeping tasks. If you have a bigger business and employ people you will have to:
1. Pay your employees on a predetermined frequency, often weekly, fortnightly and monthly
2. Pay superannuation for your employees
3. Withhold and pay their taxes to the ATO on a monthly or quarterly basis
4. Maintain employees files and ensure the business is compliant
5. Prepare and Lodge your GST return with the ATO on time
6. Managing your debtors
7. Ensuring creditors are paid on time
8. Posting journal entries where necessary
9. Recording of any new asset or a disposal of asset
10. End of year accounts reconciliation to be Tax ready
Hoping that I have been able to clarify what Bookkeeping is.