What Does a Bookkeeper Do for a Small Business in Australia? Tasks, Limits and What to Expect

Last updated: 25 October 2026.

If you have never worked with a bookkeeper, the job can sound vague: “keeping the books”. In practice it is a set of regular, practical tasks that turn a pile of bank transactions, invoices and receipts into accurate records you can run the business from, and that your BAS and year-end work can rely on.

This guide explains what a bookkeeper typically does for an Australian small business, where bookkeeping ends and BAS work begins (the Tax Practitioners Board draws that line), what sits outside the role, and what good service looks like. It is general information, checked against primary sources on 25 October 2026.

The short version: a bookkeeper records and organises your day-to-day transactions, reconciles your bank accounts, manages invoices, bills and payroll records, and keeps your accounting software tidy. If you also want someone to prepare and lodge your BAS, that person must be a registered BAS agent.

The core tasks, in the order they usually happen

Xero’s guide to hiring a bookkeeper (published 11 May 2026) lists the typical work: recording daily transactions such as sales, purchases and expenses; managing receipts, invoices and payments; reconciling bank statements with your accounting records; processing payroll and managing employee entitlements; setting up and maintaining cloud accounting software; and preparing and lodging BAS if the bookkeeper is a registered BAS agent. Here is how that plays out in a normal month.

  1. Capture the paperwork. Supplier bills, receipts and sales records are collected, ideally by photo or email into your accounting software rather than a shoebox.
  2. Record and code transactions. Each bank transaction is matched to an invoice or bill, or coded to the right account, with the right GST treatment.
  3. Raise invoices and chase payments. Sales invoices go out, and your bookkeeper tracks what customers owe you (accounts receivable) and what you owe suppliers (accounts payable).
  4. Pay bills. Bills are prepared for your approval and payment on time.
  5. Run payroll records. Pay runs, PAYG withholding and super are processed and recorded if you have employees.
  6. Reconcile. Every bank, card and loan account is checked against the statement so the books agree with what actually happened in the bank. The ATO tells businesses to regularly reconcile their banking records, because it shows you what money goes through your account and why.
  7. Review and report. Month-end reports, such as profit and loss and balance sheet, are checked and sent to you.

Why reconciliation is the heart of it

Reconciliation is the step that gives the numbers integrity. The ATO’s record-keeping guidance says to record all the amounts you have actually received and paid and to reconcile regularly, and it notes that regular reconciliation helps you be more confident your records contain the information you need for your activity statements, and reduces the time it takes to prepare them. If your reports do not agree with the bank, nothing built on them can be trusted. (If your Xero balance does not match your bank statement, see our guide on why a Xero balance differs from the bank.)

Where bookkeeping ends and BAS work begins

Many people assume the bookkeeper “does the BAS”. That depends on who they are. The Tax Practitioners Board (TPB) says that entities providing BAS services for a fee or other reward must be registered with the TPB, and that there are significant civil penalties for providing or advertising BAS services while unregistered. A BAS service is one that involves interpreting or applying a BAS provision, for example working out liabilities or entitlements under the GST law, or representing a client to the ATO about them.

The TPB is also clear that not everything done when preparing a BAS is a BAS service. Entering data, coding transactions based on instructions provided, processing payments and preparing bank reconciliations do not require interpreting a BAS provision, so they are not BAS services. By contrast, the TPB’s examples of BAS services include completing activity statements for a client, confirming the figures to go on an activity statement, and installing accounting software and determining the default GST codes for a client.

WorkBookkeeping, or BAS service?
Entering data and coding transactions on your instructionsBookkeeping (not a BAS service, per TPB)
Preparing bank reconciliations and processing paymentsBookkeeping (not a BAS service, per TPB)
Completing your activity statement or confirming its figuresBAS service (registered BAS agent required)
Setting default GST codes for your softwareBAS service, per TPB’s examples
Lodging the taxable payments annual report or sending a TFN declaration to the ATO for youServices a registered BAS agent can provide, per TPB

The practical lesson: if you want one provider to keep your books and lodge your BAS, choose a registered BAS agent, and check the registration on the TPB public register. Our guide to how a bookkeeper, accounting services provider and CFO differ shows where each role fits.

What a bookkeeper does not usually do

  • Audit your books. Reviewing or auditing financial reports is an independent assurance job, not bookkeeping.
  • Replace strategic financial advice. Bookkeeping tells you what happened; budgeting, forecasting and decisions about growth, pricing and borrowing need analysis on top. That is the territory of financial management or CFO support.
  • Handle specialist work outside bookkeeping and BAS. Anything needing different registrations or qualifications should be done by a suitably registered professional. With us, specialist work is done by suitably registered professionals and coordinated by our team, so you have one point of contact.
  • Fix a business that does not keep its paperwork. The records still have to exist. The ATO says you must keep records of all transactions relating to your tax, super and registration affairs, generally for five years.

What you should receive from a good bookkeeper

  • Books that are reconciled to the bank every month, with a short note on anything unusual.
  • A clear scope in writing: which accounts, how many transactions, whether BAS and payroll are included. Our guide to what bookkeeping costs per month lists the questions to ask.
  • Access to your own file in software you own, so you are never locked out.
  • Questions raised early, such as missing invoices or odd transactions, rather than at BAS deadline.
  • Reports you can understand, sent on a predictable schedule.

What your bookkeeper needs from you

  • Access to your bank feeds and accounting software, or statements if there is no feed.
  • Tax invoices and receipts for purchases. The ATO says you need a tax invoice to claim a GST credit on purchases over A$82.50 including GST.
  • Quick answers about what an unfamiliar transaction was for.
  • Any payroll changes: new starters, finishers, pay rate changes.

If you are comparing doing it yourself with hiring someone, read our guide on whether to do your own bookkeeping or hire a bookkeeper.

How we work

We keep your records current month by month, reconcile every account and flag problems early. Because our team includes a registered BAS agent, we can take you from bookkeeping through to BAS under one scope. We agree the scope in writing first, so you know what is included.

How we help

We provide monthly bookkeeping, BAS and payroll support for Sydney small businesses, trades and not-for-profits. See our bookkeeping services and BAS agent services, or email info@guidancegrowth.com.au or use our get in touch page.

Frequently asked questions

What does a bookkeeper do on a day-to-day basis?

Typically they record and code transactions, manage invoices, bills and payments, reconcile bank accounts, process payroll records and keep your accounting software in order. Xero’s guide to hiring a bookkeeper lists these as the usual tasks.

Does a bookkeeper do my BAS?

Only if they are a registered BAS agent. The TPB says entities providing BAS services for a fee or reward must be registered. Data entry, coding on instructions, payments and bank reconciliations are not BAS services, so a bookkeeper without registration can do those but cannot prepare or lodge your BAS.

What is the difference between a bookkeeper and a BAS agent?

A bookkeeper records and reconciles your transactions. A BAS agent is registered with the Tax Practitioners Board to provide BAS services, such as completing and lodging activity statements. Many people are both.

Do I still need a bookkeeper if I use Xero or another cloud platform?

Software automates bank feeds and matching, but someone still needs to review coding, reconcile, catch errors and meet deadlines. Xero’s guide says software and a bookkeeper work well together.

How do I know if my bookkeeper is registered?

Ask for their registration details and check them on the Tax Practitioners Board public register. Registration is required for anyone charging a fee to provide BAS services.

Sources and further reading

This article is general information, not personal advice. Rules and dates can change, so check ato.gov.au or acnc.gov.au for the latest, or speak to us about your situation.

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