Good bookkeeping is the cornerstone of financial success. For Australian SMEs, keeping accurate records is essential for staying compliant, making informed decisions, and thriving long-term. Here are five well-tested best practices to streamline your bookkeeping process.

1. Automate Bank Feeds and Reconcile Monthly

Set up real-time bank feeds in your accounting software (Xero, QuickBooks, MYOB).

  • Review and reconcile transactions monthly
  • Flag anomalies and investigate unusual items promptly
    This practice not only keeps your books accurate, but also reduces stress at EOFY.

2. Maintain a Clear Chart of Accounts

A well-structured chart of accounts helps categorize income, expenses, assets, and liabilities effectively.

  • Use standard ATO codes where possible
  • Regularly clean out redundant or unused categories
    A good chart ensures your management reports and BAS are error-free.

3. Keep Digital Records with Proper Receipts

Go paperless—use tools like Hubdoc or Receipt Bank to scan and organize receipts.

  • Attach every invoice or receipt to its corresponding transaction
  • Label digital documents clearly with vendor, date, and category
    This improves audit readiness and ensures a smooth flow for expense tracking.

4. Stay on Top of GST & BAS Deadlines

Ensure you know your BAS lodgment frequency—quarterly or monthly.

  • Track GST on sales/payments regularly
  • Reconcile PAYG withholding and superannuation before deadlines
    Staying ahead of BAS filings helps avoid penalties and interest charges.

5. Use Cloud-Based Software (and Backups)

Cloud solutions like Xero or QuickBooks Online give you access anywhere and automatic backups.

  • Invite your accountant or bookkeeper to collaborate
  • Ensure 2FA and strong passwords are enabled
    Cloud tools offer real-time visibility and secure collaboration.

Learn more about our [Online Bookkeeping Services]

Check our [Payroll Data Entry & Processing] page

ATO guidelines on BAS and GST

ATO – record-keeping

Conclusion & CTA

Strong bookkeeping habits are a solid investment in your business’s financial future. By adopting these five simple practices, Australian SMEs can improve accuracy, compliance, and decision-making.

👉 Need help implementing these best practices? Contact us for a free consultation and simplify your bookkeeping!