Professional Support
Bookkeeping
Organise bookkeeping routines for income, expenses, invoices, receipts, payroll records, and business reporting.
Overview
Bookkeeping explained
Bookkeeping is the day-to-day record of money in and out: income, expenses, invoices, receipts and payroll details kept tidy and up to date. Strong bookkeeping makes tax time calmer, shows you whether the business is actually profitable, and helps you spot problems early.
Cockatoo helps you build a steady routine so transactions are recorded, categorised and reconciled against your bank, rather than piling up for a year-end panic. Clean books also make handing over to an accountant or tax agent far smoother.
The ATO generally expects you to keep business records for five years. This is general guidance only; for advice on your accounts, consider engaging a registered BAS agent or bookkeeper.
What to check
Key points
- Regular reconciliation against your bank catches errors before they grow.
- Categorised income and expenses make reporting and tax time straightforward.
- Receipts and invoices should be stored and easy to find later.
- Payroll records must be accurate if you employ staff.
Before you start
What you'll need
- A dedicated business bank account, kept separate from personal spending.
- A consistent set of income and expense categories.
- Copies of invoices issued and bills or receipts received.
- Payroll records, including pay, leave and superannuation, if you have staff.
- A regular time, weekly or monthly, set aside to update the books.
Process
How it works
- Separate business and personal money into different accounts.
- Record each transaction and assign it a clear category.
- Reconcile your records against the bank statement regularly.
- File receipts and invoices so they can be retrieved when needed.
- Produce a simple monthly summary to review profit and outstanding amounts.
Avoid these
Common mistakes
- Mixing personal and business spending, which makes the books hard to trust.
- Letting transactions build up unreconciled until reporting deadlines loom.
- Throwing away receipts before the five-year record-keeping period ends.
- Treating money set aside for tax or super as available cash flow.
Common questions
Bookkeeping FAQs
What does good bookkeeping involve?
It involves recording income and expenses, categorising them, storing receipts and invoices, and reconciling against the bank. Cockatoo helps you keep this routine consistent so your records stay reporting-ready all year.
How long do I need to keep my records?
The ATO generally requires business records to be kept for five years from when they were prepared or the transaction was completed. Keeping digital copies in an organised place makes this easy to manage.
Do I need a bookkeeper or can I do it myself?
Many small businesses keep their own books day to day and bring in a registered BAS agent or bookkeeper for review, payroll or BAS lodgement. The right mix depends on your time, confidence and complexity.
How often should I reconcile?
Reconciling weekly or monthly is far easier than facing a year of transactions at once. Frequent reconciliation catches duplicate entries, missed income and miscategorised expenses while they are still fresh.
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