Hiring a bookkeeper isn’t just a box to tick—it’s a decision that can shape the financial backbone of your business. Whether you’re just starting or scaling rapidly, the right bookkeeper helps keep your accounts in order, ensures you stay compliant, and offers insights that guide smarter decisions. But, not all bookkeepers are created equal.
Before you bring someone on board, it’s worth taking a moment to ask the right questions, as a poor choice could cost you more than just a few late lodgements. Let’s walk through the key questions to ask (and why they matter) so you can confidently hire someone who aligns with your business goals.
Read what we said on our website to make sure you’re asking the questions that count.
Understanding The Bookkeeper’s Background
What Is Your Professional Background?
Get a sense of their journey. Were they self-taught or formally trained? Do they hold certifications, such as BAS agent registration, or memberships with professional bodies like the Institute of Certified Bookkeepers (ICB), CPA Australia, or the Institute of Public Accountants (IPA)?
More importantly, ask why they chose bookkeeping. Passion can’t be faked. A bookkeeper who genuinely enjoys their work tends to be more thorough and proactive in their approach to work. For instance, someone who says, “I love helping business owners sleep better at night knowing their books are clean” brings more than just technical skills—they bring peace of mind.
Do You Have Experience With Businesses Similar To Mine?
Industry-specific experience makes a big difference. A bookkeeper who works with cafes will be familiar with the nuances of POS reconciliations and daily cash-ups. At the same time, someone with experience in the trades will understand invoice delays and cash flow pain points.
If your business is in e-commerce, for example, you’ll want someone who understands platforms like Shopify, knows how to manage stock control, and is skilled in integrating online sales platforms with accounting software.
Assessing Services And Capabilities
What Services Do You Offer?
Not all bookkeepers do the same thing. Some strictly handle data entry, while others dive deeper, encompassing payroll, BAS lodgements, superannuation, Single Touch Payroll (STP) reporting, and event management reporting.
Ensure a precise match between your needs and what they offer. For instance, if you’re growing fast and want quarterly performance insights, you’ll want a bookkeeper who can produce reports and help you understand them, not just someone to categorise receipts.
How Do You Ensure Accuracy In Your Work?
Mistakes in bookkeeping can snowball—missing GST, misclassifying expenses, or double-counting income can all create headaches come tax time.
Ask about their processes: Do they reconcile their bank accounts monthly? Do they use checklists? Are they reviewed by a second set of eyes, such as a reviewer or accountant? Automation tools like Hubdoc or Dext can also reduce human error, so find out what they use.
Are You Proficient With Specific Accounting Software?
Tech plays a significant role in modern bookkeeping. Whether your business uses Xero, MYOB, QuickBooks, or Reckon, your bookkeeper should be fluent in that system. Ask if they’re certified on the platform.
For example, Xero-certified advisors tend to be more adept at navigating updates, integrations, and reporting tools. Bonus points if they can help you set up automation, bank feeds with central Australian banks, or show you how to read dashboards.
Evaluating Communication And Collaboration
How Will We Communicate?
The last thing you want is a ghost bookkeeper. Discuss how you’ll stay in touch—will they email weekly reports? Use WhatsApp for quick queries. Hold monthly Zoom check-ins?
Set expectations early. For example, if you’re the type who likes real-time updates or prefers phone calls over email, let them know. Likewise, if you only want quarterly reports and minimal back-and-forth, please make that clear as well.
Can You Provide References From Current Or Past Clients?
Anyone can talk a good game. Client references, on the other hand, speak volumes.
Ask to speak to a current client (preferably in a similar industry). Ask about timeliness, accuracy, and how the bookkeeper handles problems. If they hesitate to provide references, that’s a red flag.
Understanding Fees And Contracts
How Are Your Fees Structured?
Bookkeepers typically charge in three ways:
- Hourly: Good for ad-hoc or irregular work.
- Fixed monthly packages: Great for predictability, especially if your needs are consistent.
- Per-service: Charged for specific tasks like payroll or BAS.
Get clarity on what’s included. For instance, does the monthly fee include phone support? BAS lodgements? What happens if your transactions double during peak season?
Also, check if there are penalties for late payments or extra fees for urgent tasks. The last thing you want is a surprise invoice during EOFY.
Do You Offer Contracts Or Service Agreements?
A service agreement protects both parties. It outlines responsibilities, scope of work, notice periods, and procedures for handling disputes. Make sure the agreement complies with Australian Consumer Law (ACL) and includes:
- Termination clause
- Confidentiality
- Payment terms
- Dispute resolution process
- Response time expectations
A well-drafted contract isn’t about mistrust—it’s about clarity.
Ensuring Compliance And Security
How Do You Handle Data Security And Confidentiality?
Bookkeepers often access sensitive business information, including payroll, bank accounts, and client details. Ask how they store and protect data.
Do they use encrypted platforms? Two-factor authentication? Password managers like LastPass? Does antivirus software protect their devices?
Also, check if they’re compliant with the Australian Privacy Principles (APPs). If they’re using cloud accounting, confirm where your data is stored, especially if you operate in industries with stricter data handling rules.
If they use government portals, ensure they’re proficient with myGovID and the ATO Business Portal, both of which are now essential for working with the ATO.
Are You Familiar With Local Tax Laws And Regulations?
From GST to superannuation to STP (Single Touch Payroll), Australian tax law has a unique set of requirements.
Ensure your bookkeeper is a registered BAS agent with the Tax Practitioners Board (TPB)—only they are legally authorised to prepare and lodge BAS statements. If your bookkeeper also handles superannuation, confirm they’re up to date with SuperStream compliance.
A proactive bookkeeper will also keep you ahead of changes and remind you of key due dates (BAS, PAYG, STP finalisation, etc.).
Planning For The Future
How Can You Support My Business As It Grows?
Today, you need simple data entry and bank reconciliation. But what about tomorrow? Will they scale with you as your needs evolve?
A future-ready bookkeeper should:
- Help you upgrade from manual systems to platforms like Xero or MYOB
- Be comfortable with multi-entity businesses if you expand
- Offer more advanced services like cash flow forecasting, budgeting, or KPI tracking
- Understand compliance for different business structures (e.g. sole trader to company)
If they’re part of a bookkeeping firm, ask if they can assign more staff when needed. If they’re a solo operator, ask about their capacity and contingency plans.
Conclusion
Choosing a bookkeeper is a critical investment in your business’s stability and growth. It’s not just about who can crunch numbers—it’s about who can understand your goals, communicate clearly, and help you stay compliant with Australian standards.
By asking these 12 questions, you’re not just filling a role—you’re building a partnership that supports your long-term success.
Frequently Asked Questions
Do I Need A Registered BAS Agent To Do My Bookkeeping?
Not always. For basic data entry and bank reconciliations, a bookkeeper doesn’t need to be a registered BAS agent. However, if they’re lodging your Business Activity Statements (BAS), handling GST, PAYG, or STP reporting, they must be registered with the Tax Practitioners Board (TPB). Always check their registration if compliance tasks are involved.
What’s The Difference Between An Accountant And A Bookkeeper In Australia?
A bookkeeper handles the day-to-day tracking of financial transactions—reconciling bank accounts, processing payroll, and preparing reports. An accountant provides higher-level analysis, tax planning and lodges tax returns on behalf of clients. In many cases, a bookkeeper works closely with your accountant to keep your records clean and accurate throughout the year.
How Often Should I Communicate With My Bookkeeper?
This depends on the complexity and size of your business. At a minimum, monthly check-ins are common for regular reconciliations and preparing the BAS. If your business experiences frequent transactions, employees, or cash flow issues, more frequent communication—such as weekly or fortnightly updates—may be beneficial for keeping everything on track.