The importance of bookkeeping
Binghay Co • March 20, 2024
In today's digital times, you're probably used to having unrivalled access to your financial numbers, key performance indicators (KPIs) and cashflow metrics. Without good bookkeeping, the speed and quality of your reporting can quickly fall down.
So, why is fast and accurate bookkeeping so important? And what are the main bookkeeping tasks that your business should be getting right?
The financial importance of good bookkeeping
Bookkeeping is a fundamental part of your financial process as a business. Without it, your accounting software has no financial data to work with, your data doesn’t have the most current numbers, and your accountant can’t see the current financial health of the business.
Inputting your financial transaction into some form of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services tax. Bookkeeping is what provides you with a historic breadcrumb trail of your finances – allowing you to track your cashflow, revenues and profits over a given period.
How to maximise your bookkeeping
So, bookkeeping is a vital part of your financial management. And the key to having your transactions recorded, available for reporting and accessible whenever you need them.
But how should the bookkeeping process work, in an ideal world? Let’s walk through the core bookkeeping steps and how you can get the most from this financial admin task.
To keep on top of your bookkeeping:
- Scan all financial paperwork – the initial part of the bookkeeping process is to scan and record all receipts, invoices and remittances. This gives you a digital copy of the paperwork that relates to your income and expenses – important when you get around to filing tax returns and expense claims etc.
- Record all transactions immediately – getting your transaction recorded and in the books ASAP is vital. This includes recording both your income and expenses, as soon as they occur, and matching them with the scanned paperwork. This not only helps you stay organised but also means your financial data is always up-to-date and can provide real-time reporting and numbers. This can be a huge help when running the business.
- Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly. Not only does this remove the potential for errors and miss-keying in your books, it also helps you track your spending and income more accurately, so your reports are an honest reflection of your financial health.
- Reconcile your accounts regularly – reconciliation is the process of matching your transactions (both income and expenses) against your bank statement and other financial statements. It’s a key part of your bookkeeping and should be done regularly, to ensure that your balances are correct and that your records are totally up to date.
- Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore. In the digital world, you can use cloud-based accounting software, like MYOB, to record your transactions and access your financial data in the cloud from anywhere, at any time. This makes it easier to keep on top of your numbers when out of the office.
- Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping. But there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don't have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move. A bookkeeper will make sure your books are always accurate and under control. Plus, they can produce cashflow statements, revenue forecasts and other reports to help your business decision-making.
Talk to us about outsourcing your bookkeeping
With today’s cloud accounting software, bookkeeping is a far less tedious task than it used to be. But it’s still a regular, time-consuming job that can take you away from running the business.
If you’re thinking about outsourcing your bookkeeping, and freeing up that admin time, we’d love to talk to you. Our outsourced bookkeeping service will take on your bookkeeping tasks, to streamline the whole process. We’ll also introduce you to automated data-entry tools that make snapping receipts and scanning invoices a breeze.
Let us do the books, so you can get back to talking to customers and winning work
If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.
Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.
From 1 July 2026, thousands more businesses—including accounting and professional services firms - are now regulated under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. This includes newly regulated sectors such as accounting, real estate, conveyancing, legal services, as well as dealers in precious stones and metals.Under these new laws, such businesses must meet additional obligations, including: - implementing AML/CTF programs, - conducting customer due diligence, - reporting suspicious matters, and - keeping relevant records. Are all accounting services now regulated? In short, no. Only some services provided by accountants are considered regulated services (known as designated services). Some examples of when the AML/CTF regulations may now apply include when an accountancy firm: - helps create or restructure a company, - assists in the planning or execution of a transaction to sell, buy, or transfer a company, - receives, holds, controls or manages a client’s money to help plan or execute a transaction, - provides a registered office or principal place of business address. This list isn’t exhaustive. For a full list of designated services, refer to AUSTRAC’s website.As a general rule, general tax return preparation, bookkeeping, and payroll services are not considered designated services. What do these changes mean? Some of our onboarding and engagement processes may look a little different from 1 July, and we may have some additional questions or require extra documentation before we start to provide a designated service. These changes are necessary for us to remain compliant with AML/CTF laws, no matter how long we’ve worked with a client. If you have any questions about these changes, as ever, please feel free to get in touch.
In just a few weeks, Payday Super will finally go live. From 1 July 2026, quarterly super contributions for employees will end. Instead, employees’ super will need to be paid at the same time as their salary and wages, with payments typically due in employees’ super accounts within seven business days after payday. But with such a big change on the horizon, employers need to know the process for settling their employees’ super obligations for the quarter ending 30 June 2026, and how to smoothly transition to the new Payday Super rules from 1 July 2026. Settling super for the quarter ended 30 June 2026 The quarter ended 30 June 2026 is the last period for which the current quarterly super payment rules apply. Employers will need to calculate their employees’ super based on their ordinary time earnings and pay that amount in full, on time, and to the correct fund by 28 July 2026. If an employer misses the 28 July deadline, a super guarantee charge (SGC) statement will need to be filed and any SGC paid for the quarter ended 30 June. Note that the late payment offset is not available for this final quarterly payment. Crucially, keep in mind that any super payments received on or after 29 July will be applied under the new Payday Super rules, even if the employer intended these payments to be made for any super owed for the June quarter. Running payroll under Payday Super From 1 July 2026, Payday Super is in effect, with super guarantee payments based on an employee’s qualifying earnings from 1 July 2026 (even if the work that earned that pay was done before 1 July). Under Payday Super, super guarantee payments should generally arrive within an employee’s super account within seven business days after payday (there are times when this deadline is longer, for example in the case of a new hire). Be aware though, any contributions received into an employee’s fund on or before 28 July will actually reduce any super owing for the quarter to 30 June 2026 in the first instance. Once super for the June quarter has been settled, any remaining contributions will then be counted towards the amount due under Payday Super. While this is an important quirk in the rules, the reality is that if an employer pays the correct amount for both their June quarter and first Payday Super payment, then both sets of contributions will be made on time, and there won’t be any risk of incurring penalties for late payment. Ready for Payday Super? Do you have any last-minute questions about Payday Super, or worried about how to handle the changeover period? Speak to a member of our team today – we’d be happy to help.
On Tuesday, 12 May 2026, Treasurer Jim Chalmers delivered the ‘most important and ambitious Budget in decades’. Certainly, the 2026-27 Federal Budget was ambitious, announcing significant reforms to capital gains tax and negative gearing in a bid to support home ownership and improve the fairness of the tax system. Outside of those headline changes, targeted cost-of-living support was announced for Australian workers, including a $250 Working Australians Tax Offset, while businesses also received some relief thanks to the $20,000 instant asset write-off being made permanent, alongside loss relief reforms for companies. Key Budget tax announcements Capital gains tax reform From 1 July 2027, the 50% capital gains tax discount (which was introduced back in 1999) will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax imposed on most net capital gains. All CGT assets – including pre-1985 CGT assets – held by individuals, trusts and partnerships are affected by these changes. However, transitional arrangements mean the reforms only apply to gains accruing on or after 1 July 2027. Gains on pre-1985 assets accrued before 1 July 2027 will remain CGT exempt. Investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum tax. Negative gearing curbed Under the current system, losses from a rental property can be used to reduce other forms of taxable income (e.g. salary and wages) in a process that’s known as negative gearing. From 1 July 2027, losses related to established residential investment properties purchased from 7.30pm AEST 12 May 2026 will only be deductible against rental income or capital gains from residential property. Excess losses will be carried forward for offset against residential property income in future years. This change applies to individuals, partnerships, companies and most trusts. Superannuation funds, including SMSFs, are excluded from the changes. Investors in established residential properties acquired prior to 7:30pm AEST 12 May 2026 can continue to apply the current negative gearing rules until the property is sold. Properties purchased between announcement and 30 June 2027 may be negatively geared during this period, but not from 1 July 2027. A specific carve out is included for investments in eligible new builds, which can continue to be negatively geared before and after 1 July 2027 (i.e. current negative gearing rules remain in place). Individuals A new, permanent Working Australians Tax Offset of $250 will apply from 1 July 2027, available to those who derive income from work, such as employees and sole traders. Originally announced during the 2025 Federal election and reconfirmed at the Federal Budget, a $1,000 instant tax deduction is to be introduced from 1 July 2026, benefitting Australian tax residents who have low work-related deductions. Importantly, there will be no substantiation requirements to claim the deduction. Individuals with work-related expenses over $1,000, or who earn only business or investment income, can continue to claim their deductions in the usual way. While not a new Federal Budget measure, already-legislated changes in personal tax rates will shortly come into effect. From 1 July 2026, the tax rate that applies to taxable income between $18,201 and $45,000 will reduce from 16% to 15%, falling further to 14% from 1 July 2027. Instant asset write-off now permanent From 1 July 2026, the instant asset write-off is permanently extended to $20,000 for small businesses with turnover up to $10 million. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool. Loss relief for companies From 1 July 2026, companies with aggregated annual global turnover of less than $1 billion will be able to carry back a tax loss and offset it against tax paid up to two years earlier. This change applies to revenue losses only and will be limited by a company’s franking account balance. Small start-up companies will also be able to access ‘loss refundability’. From 1 July 2028, start‑up companies with aggregated annual turnover of less than $10 million that generate a tax loss in their first two years of operation will be able to utilise the loss to generate a refundable tax offset. However, the offset will be limited to the value of fringe benefits tax and withholding tax paid on Australian employee wages in the loss year. Minimum tax on discretionary trusts From 1 July 2028, and subject to certain exceptions, trustees will pay a minimum tax of 30% on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee. This change does not apply to other types of trusts (e.g. fixed and widely held trusts (including fixed testamentary trusts), complying superannuation funds, special disability trusts, deceased estates and charitable trusts). Expanded rollover relief will be provided for three years from 1 July 2027 to support small businesses and others that wish to restructure out of discretionary trusts into another entity type, such as a company or a fixed trust. Fringe Benefits Tax and EVs From 1 April 2029, a permanent 25% discount on fringe benefits tax (FBT) will be available for all electric cars valued up to and including the fuel‑efficient luxury car tax threshold. All electric cars valued up to and including $75,000 that are provided before 1 April 2029 continue to be eligible for a 100% discount on FBT. Electric cars valued above $75,000 and up to and including the fuel‑efficient luxury car tax threshold that are provided between 1 April 2027 and 1 April 2029 will be eligible for a 25% discount on FBT. Administration Expansion of the ATO’s pilot of ‘dynamic’ pay as you go (PAYG) instalment calculations, with expanded access to monthly payments. From 1 July 2027, small and medium businesses can opt in to reporting and paying PAYG instalments monthly and to using an ATO-approved calculation embedded in accounting software to calculate and vary their instalments. Taxpayers with a demonstrated history of non‑compliance will also be required to report and pay PAYG instalments monthly. The Government has also confirmed that it will work with the states and territories to harmonise payroll tax administrative arrangements.
