How to hire a bookkeeper for your Australian business

Published Monday 2 February 2026

Table of contents

• Why do you need a bookkeeper?
• When should I hire a bookkeeper?
• The tasks of a bookkeeper
• How are they different from accountants?
• Benefits of hiring a bookkeeper
• Questions to ask when hiring a bookkeeper
• Finding the right person
• Making the smart choice for your business
• FAQs on hiring a bookkeeper

Key takeaways

• Hire a bookkeeper within the first few months of operation to avoid overwhelming backlogs of receipts and invoices, and to maintain accurate financial records from the start.
• Verify that potential bookkeepers are registered BAS agents and have experience with your industry, while ensuring they use the same cloud-based accounting software as your accountant for seamless collaboration.
• Understand that bookkeepers handle daily transaction recording and cash flow monitoring, while accountants focus on quarterly reviews, tax compliance, and strategic business advice.
• Check references thoroughly and have your accountant meet with top candidates before making a final decision, as you're trusting them with sensitive business financial information.

Why do you need a bookkeeper?

As a business owner, you probably focus on what you love most about running your company, not recording detailed financial transactions every day.

Hair salon owners face multiple daily financial tasks:

• High transaction volume: Dozens of customer payments daily
• Supplier management: Regular invoices for hair products and supplies
• Sales tracking: point-of-sale (POS) systems recording multiple daily transactions
• Payroll processing: Employee wages and scheduling records

That's a lot of information to track and record. And bookkeeping might not be something you enjoy or have time to understand.

Good bookkeeping keeps transactions recorded and organised, so your financial details are ready for tax time and cash flow planning.

Bookkeepers handle daily financial record-keeping for your business. They manage receipts, invoices, and transaction recording. This frees you to focus on running your company.

When should I hire a bookkeeper?

Hire a bookkeeper as early as possible in your business journey. The ideal time is within the first few months of operation, before financial records become overwhelming.

If you hire a bookkeeper early, you avoid a backlog of receipts and invoices. It also becomes much easier to match expenses to the right clients and keep your records accurate.

For example, you may ask yourself, "What was this train ticket for? Who did I visit on 13 July?" A bookkeeper would know which client you visited and why. They would then account for the travel expense in the correct way.

The tasks of a bookkeeper

A bookkeeper is someone who records the financial transactions of your business. They also:

• keep track of sales, purchases, payments and receipts
• work on the design maintenance and review of internal business processes
• organise, collate and record financial data on a day-to-day basis and store this information in general ledgers
• record the financial information of your business in a standard way, so that accountants can also access it

In this guide we'll look at what a bookkeeper can do for you, and when you might hire one for your business.

What do they actually do?

Bookkeepers are trained and use the same financial recording methods as accountants, following official versions of the Accounting Standards that are applied to specific reporting periods. They do this so that your accountant can quickly and easily process your financial information.

They will:

• take all your receipts, invoices and other transaction details
• record the information in accounting software using proper accounting methods
• work with you to make sense of the numbers, for example assigning costs to specific clients

Professional bookkeepers offer expertise beyond basic transaction recording:

• Software optimization: Recommend POS tools and workflow solutions
• Payroll management: Simplify employee payment processes
• Error correction: Fix mistakes from inexperienced staff
• Training support: Teach you accounting software basics

They can also offer day-to-day support for small business owners. In fact a good bookkeeper is your partner in keeping things running smoothly within your business.

How are they different from accountants?

Bookkeeping and accounting serve different but complementary functions in your business. Bookkeepers handle daily financial tasks while accountants review your figures and help you meet your reporting and tax obligations.

Bookkeeper responsibilities:

• Daily tasks: Record transactions and maintain accurate accounts
• Short-term insights: Identify cash flow issues and payment delays
• Ongoing support: Monitor financial health regularly

Accountant responsibilities:

• Quarterly reviews: Analyse completed financial records
• Compliance work: File tax returns and official reports
• Business advice: Help you plan, grow, and improve how your business runs

For your business to run smoothly, ideally you need both people. You'd hire a bookkeeper to look after the day-to-day work. And you'd hire an accountant to handle official reporting and high level business advice.

Benefits of hiring a bookkeeper

A good bookkeeper does more than just record transactions. They can bring real benefits to your business, helping you save time, improve accuracy, and feel more confident about your finances.

Saving time and money

By handing over daily financial tasks, you get more time to focus on what you love: running your business. A bookkeeper can also spot opportunities to reduce costs and improve cash flow, which can save you money in the long run.

Accurate record keeping

With a professional managing your books, you can trust that your financial records are accurate and up to date. This reduces the risk of errors that could lead to problems down the line.

Staying on top of your obligations

A registered bookkeeper stays up to date with tax rules and regulations, including recent revisions to professional codes of ethics for tax planning that apply since mid-2025.

They can help ensure your business meets its obligations under laws like the National Consumer Credit Protection Act, giving you peace of mind, especially when tax time comes around.

Questions to ask when hiring a bookkeeper

Finding the right bookkeeper is an important decision. To help you choose the best fit for your business, it's a good idea to ask a few key questions.

Check their qualifications and experience

Ask about their qualifications, such as whether they are a registered business activity statement (BAS) agent. It's also helpful to know if they have experience working with businesses in your industry.

Understand their services and rates

Clarify what services are included in their fee and how they charge, whether it's hourly or a fixed monthly rate. This helps you understand the value you're getting and avoid any surprises.

Confirm software compatibility

Make sure they are proficient with the accounting software you use, like Xero. When your bookkeeper and accountant can both access the same cloud-based software, it makes collaboration seamless.

Finding the right person

Whoever you hire needs to be trusted with the everyday details of your business finances. So you should be very careful when you hire a bookkeeper.

Finding qualified bookkeepers involves several approaches:

• Direct contact: Research local bookkeeping businesses online
• Referrals: Ask business partners and clients for recommendations
• Professional networks: Consult your accountant for suggestions

If you have an accountant, ask them too. It's best if you can find someone who uses the same accounting software as your accountant. That way they can share accounts information easily.

Ideally the accounting software should be cloud-based, which means it's accessed online. Then all of you will be able to share access to the financial data for your business. You can do it remotely and securely from anywhere.

Vetting potential bookkeepers requires these steps:

1. Check references: Review their past work record and client feedback
2. Contact referees: Speak directly with previous clients about their experience
3. Arrange meetings: Have your accountant meet with your top candidates

Trusting someone with your business finances is a big step, so check their references and experience before you hire a bookkeeper.

Making the smart choice for your business

Professional bookkeepers provide essential business support by managing daily financial tasks. This saves you time to focus on business growth. Keeping your records up to date gives you a clearer view of how your business is doing.

Ready to find an advisor? Use the Xero advisor directory to connect with an experienced bookkeeper.

FAQs on hiring a bookkeeper

Still have questions about hiring a bookkeeper? Here are answers to some common queries.

How much does a bookkeeper cost in Australia?

The cost can vary based on your business size, the number of transactions, and the services you need. Rates can be hourly or a fixed monthly fee, so it's best to get a quote based on your specific requirements.

Is hiring a bookkeeper worth the investment?

For many small businesses, yes. A bookkeeper saves you valuable time, reduces stress, and provides financial clarity. This allows you to focus on growing your business, making it a worthwhile investment.

What's the difference between hiring a bookkeeper and using accounting software?

They work together. Accounting software like Xero automates many tasks, but a bookkeeper provides the human expertise to manage the software, interpret the data, and offer advice. They ensure everything is recorded correctly and help you understand what the numbers mean for your business.

How do I know if a bookkeeper is qualified?

In Australia, look for a registered BAS agent, as this is a formal qualification. You can also check for certifications from professional bodies and ask for references from other clients to feel confident in their skills.