FAQs

A bookkeeper manages day-to-day financial records, tracks income and expenses, reconciles bank accounts, prepares BAS, and ensures your books stay organised for tax and reporting purposes.

What does a bookkeeper do for a small business?

Yes. Xero is a leading cloud-based bookkeeping platform ideal for small businesses, offering invoicing, bank reconciliation, payroll, and reporting features

Can I use Xero for bookkeeping?

Can I do bookkeeping myself?

Yes, but DIY bookkeeping often leads to errors, time loss, and missed compliance deadlines. Using software helps, but having a professional can save time and reduce costly mistakes.

What is the best bookkeeping method for small business?

It often comes down to clarity on your value proposition, margins, and how well you serve your ideal customer — not just product or price.

Is Xero free for bookkeepers?

No. Xero has monthly subscription fees. However, some bookkeeping professionals have partner access, which may reduce costs for clients through included services.

Can I learn Xero for free?

Yes. Xero offers free courses, webinars, and a help centre. Many bookkeepers also offer training as part of their onboarding or service packages.

woman sitting at desk with desktop computer

Do bookkeepers pay bills?

It depends on job terms agreement, letter of engagement and business systems.

Can I learn Xero by myself?

Absolutely. With Xero’s built-in help and online resources, it’s possible to self-learn the basics, though deeper features may require guidance.

What makes my business stand out?

Accrual accounting is often ideal for small businesses. It gives a more accurate picture of your financial position, but the right method depends on your industry, size, and tax obligations.

Do I need an accountant if I have Xero?

Xero handles data entry and reports, but accountants are still essential for tax compliance, end-of-year lodgements, and financial strategy.

What is considered full charge bookkeeping?

Full charge bookkeeping refers to a bookkeeper who handles all financial recordkeeping, payroll, BAS, and often produces management reports — almost like a hybrid of bookkeeper and accountant

Is Xero hard to learn?

Xero is user-friendly, especially compared to older software. Most business owners can learn the basics in a few hours, but complex tasks benefit from professional input.

What can an accountant do that a bookkeeper cannot?

Accountants provide tax advice, prepare financial statements, and file tax returns. They interpret financial data, offer strategic guidance, and ensure compliance — areas outside the bookkeeper’s scope.

How long will it take to learn Xero?

Basic features can be learned in a few hours. Proficiency with reports, payroll, and integrations may take several weeks of consistent use.

What are the weaknesses of Xero?

Some users find Xero’s reporting limited, especially for inventory-heavy businesses. It also relies on strong internet and may have a learning curve for complex setups.

Why do accountants prefer Xero?

Because it’s cloud-based, accurate, easy to reconcile, and integrates well with tax and reporting systems — making collaboration between client and accountant smoother.

Does Xero replace an accountant?

No. Xero is a tool. Accountants interpret the data, provide compliance guidance, and ensure your business meets tax obligations — something software alone can’t do.

Some businesses prefer MYOB for its payroll tools, offline access, and familiarity. MYOB suits businesses with industry-specific needs or long-standing accounting setups.

Is it worth getting Xero?

For most small businesses — yes. It saves time, increases accuracy, and provides visibility into your financials. Just ensure you have support for setup and training.

How much is Xero per month in Australia?

Plans start around $29–$59/month depending on features (e.g., payroll, invoicing, multi-currency). Prices vary — check the latest on Xero’s website.

What is the best accounting software for small business?

It depends on your needs. Xero, MYOB, and QuickBooks Online are the most popular options in Australia, each offering strong features and integrations.

Is there a free bookkeeping software?

Options like Wave Accounting or spreadsheets exist, but lack automation and compliance tools. Most businesses outgrow free options quickly.

How to do bookkeeping in Excel?

You can use templates to track income, expenses, and bank reconciliations. However, Excel lacks automation, audit trails, and integration — best for very small or temporary setups.

What are the golden rules of accounting?

Debit what comes in, credit what goes out
Debit the receiver, credit the giver
Debit all expenses/losses, credit all incomes/gains

How do you decide which account to set up in accounting?

Consider what you need to track (e.g. sales, rent, wages), your reporting needs, and compliance requirements. A well-structured chart of accounts helps with analysis and tax reporting.

What is the normal balance of income?

Income accounts typically have a credit balance — indicating revenue earned by the business.

What is a profit and loss statement?

It shows your income and expenses over a period. It reveals if you're making a profit or a loss — essential for measuring performance and tax reporting.

What is a balance sheet?

It shows what you own (assets), what you owe (liabilities), and your equity (net worth) at a point in time. It helps track financial health.

What is a cashflow statement?

It tracks money in and out of your business — from operations, investing, and financing — helping you manage liquidity and plan for growth.

What are management reports?

Reports that go beyond tax compliance — including cashflow forecasts, budget comparisons, and KPI tracking — used for informed business decisions.

What is AR payment?

AR stands for Accounts Receivable — money owed to your business. An AR payment is when a customer settles their invoice, reducing your receivables.

What is the 10 rule for accounts receivable?

It suggests that no more than 10% of receivables should be overdue — helping businesses maintain healthy cashflow.

What does AP stand for in accounting?

AP means Accounts Payable — money you owe to suppliers. It represents upcoming bills or liabilities.

Do I send an invoice to accounts payable or receivable?

Send your invoice to the client’s accounts payable team — they’re responsible for paying. AR is your internal tracking of invoices you’ve issued.

How to manage receipts and paperwork for small to medium businesses?

Use digital tools like Xero, Hubdoc, or Dext to scan and organise receipts. Set clear filing systems and schedule regular paperwork reviews for stress-free BAS and EOFY prep.

🔹Need tailored support with any of the above?

Justwise Accounting can help you simplify your systems, manage your software, and understand your numbers — so you can focus on growing your business with confidence.