Most business owners only discover the gaps in their bookkeeping agreement when a BAS deadline is missed and the finger-pointing begins. It is a common scenario. A verbal overview, a flat monthly fee, and suddenly you are the one stuck managing both your bookkeeper and your accountant.
When scope is not defined in writing from day one, things can slip. Reconciliations go wrong. Lodgements run late. Communication breaks down.
We saw this firsthand with one of our clients, before they moved to our team. What they told us was “We experienced lots of problems with bookkeeper and accountants that didn’t really do their job. Our small business was taken for a run by a few. Late lodgements, incorrect reconciliation, aggressive behaviour. It was unhealthy.”
Before you sign with any provider, we recommend getting clear on a few things. This bookkeeper checklist helps you ask the right questions upfront, so you can avoid the confusion, missed deadlines, and unexpected bills that come from poorly defined agreements.
Bookkeeper Checklist: 8 Questions to Ask Before You Sign
1. What Is Included in the Monthly Fee?
Many bookkeeping providers advertise low monthly fees, but the real cost only becomes clear later. BAS preparation might be extra. Lodgement might be separate. Phone calls and email advice might be charged by the hour.
Before you sign, ask for a complete breakdown of what is and is not included in the monthly fee.
Questions to ask:
- Does the monthly fee include BAS preparation and lodgement?
- Are bank reconciliations included every month?
- Is there a limit on how many transactions are covered?
- Are phone calls and email support included, or charged separately?
- Is the annual tax return packaged with the monthly service, or priced separately?
- Are there additional fees for catch-up bookkeeping or year-end adjustments?
Fixed-fee models provide clarity and eliminate surprise bills. If the provider cannot give you a clear answer on what is included, that is a red flag.
2. Who Prepares and Lodges the BAS?
This is where many agreements fall apart.
Some bookkeepers prepare the BAS but expect you to lodge it yourself. Others prepare it and send it to your accountant for review, adding another layer of delay and cost. In some cases, the bookkeeper prepares it, the accountant reviews it, and you are left chasing both of them to make sure it gets lodged on time.
Questions to ask:
- Does the bookkeeper prepare and lodge the BAS, or just prepare it?
- If the accountant lodges it, who is responsible for ensuring it happens on time?
- Who communicates with the ATO if there is an issue?
- What happens if the BAS is lodged late? Who is liable?
When bookkeeping and accounting sit under one roof, this confusion disappears. The same team that reconciles your accounts also prepares, reviews, and lodges your BAS. No handoffs. No delays. No finger-pointing.
3. Who Communicates with the ATO?
When the ATO sends a letter, who handles it? When there is a query about a lodgement, who responds? When you need to set up a payment plan or dispute a penalty, who takes the lead?
In many bookkeeping arrangements, this responsibility is not defined. The bookkeeper says it is the accountant’s job. The accountant says it is the bookkeeper’s job. You are left in the middle, unsure who to call.
Questions to ask:
- Who is my primary contact for ATO correspondence?
- If the ATO raises a query about my BAS, who responds?
- If I receive a penalty notice, who helps me resolve it?
- Is ATO liaison included in the monthly fee, or charged separately?
Clear ATO communication is not a luxury. It is a basic part of compliance. If your provider cannot tell you who handles it, you will be the one managing it by default.
4. Who Owns the Accounting Software File?
This is one of the most overlooked questions, and it can become a major issue if you ever need to switch providers.
Some bookkeepers set up the accounting software under their own account, meaning you do not have full access to your own financial data.
If the relationship ends, you may find yourself locked out of your own file, waiting for the bookkeeper to transfer access.
Questions to ask:
- Will the accounting software (Xero, QuickBooks etc) be set up under my business account or the bookkeeper’s account?
- Do I have full admin access to the file?
- If I decide to switch providers, can I take the file with me?
- Who owns the historical data if the engagement ends?
Your financial data belongs to you, not your bookkeeper.
Make sure the agreement reflects that.
5. Is the Annual Tax Return Packaged or Priced Separately?
This is where the disconnect between bookkeeping and accounting becomes expensive. Most business owners understand that their bookkeeper cannot prepare or lodge their annual tax return. Only registered tax agents and accountants can do that.
The problem is not the assumption that it is included. The problem is the handover. When your bookkeeper and your tax accountant are separate providers, someone usually needs to coordinate the transfer of financial data, reconcile any discrepancies, and ensure nothing is missed.
In many cases, that someone may just be you. Your bookkeeper finalises the year-end accounts. Your accountant requests additional information. You are left in the middle, chasing both parties to get your tax return lodged on time. And then the bill arrives.
Because your accountant has not been involved in your bookkeeping all year, they often need to spend extra time reviewing, correcting, and reconciling your accounts before they can prepare your tax return. That extra time costs you money.
Questions to ask:
- Does your firm have both bookkeepers and registered tax agents, or will I need to engage a separate accountant for my tax return?
- If they are separate providers, who coordinates the handover of financial data?
- Will my accountant charge extra to review and correct the bookkeeping before preparing my tax return?
- Does the tax return include tax planning advice, or just lodgement?
- What is the estimated cost for the annual tax return?
When bookkeeping and tax preparation sit under one team with both bookkeepers and registered tax agents, the handover disappears.
The team that reconciles your accounts all year is the same team that prepares your tax return.
No information gaps. No duplicate fees. No surprises.
6. What Happens If Something Goes Wrong?
Mistakes happen. A transaction is coded incorrectly. A reconciliation is missed. A BAS is lodged late. When that happens, who is responsible?
In many bookkeeping arrangements, accountability is unclear. The bookkeeper blames the accountant. The accountant blames the bookkeeper. You are left fixing the problem yourself.
Questions to ask:
- If a reconciliation error affects my tax return, who corrects it?
- What is the process for resolving errors or disputes?
A well-written agreement should define accountability clearly. If the provider is unwilling to put it in writing, that tells you everything you need to know.
7. How Often Will We Communicate?
Communication is one of the most common complaints about bookkeepers and accountants. Emails go unanswered. Calls are not returned. Questions sit unresolved for days or weeks.
Before you sign, clarify how communication will work.
Questions to ask:
- How quickly do you respond to emails and phone calls?
- Will I have a dedicated contact, or will I be passed between team members?
- How often will we have check-ins or reviews?
- Can I call you directly if I have a question, or do I need to submit a ticket?
Responsive communication is not a bonus. It is a baseline expectation. If the provider cannot commit to clear response times, you will spend more time chasing them than running your business.
8. What Is the Process for Ending the Engagement?
No one wants to think about ending a relationship before it starts, but this is an important question. If the service is not working, how do you exit?
Some agreements lock you into long-term contracts with penalties for early termination. Others require 30, 60, or 90 days’ notice.
Questions to ask:
- Is there a minimum contract term, or can I cancel at any time?
- How much notice is required to end the engagement?
- Are there any penalties or fees for early termination?
- What happens to my financial data and files when the engagement ends?
A provider who is confident in their service will not lock you into a long-term contract. They will earn your business every month through quality work and responsive support.
Why This Matters
Sorting this out upfront is what closes the gap between strategic accounting and bookkeeping. It protects your growth along the way. When scope is defined in writing, responsibilities are clear, and communication is reliable, you can focus on running your business instead of managing your bookkeeper.
At Cotchy, we provide all-in-one accounting and bookkeeping services for growing Australian businesses. Monthly reconciliation, BAS preparation and lodgement, tax-ready financials, and annual tax returns, all under one roof. Fixed monthly fees. No lock-in contracts. Responsive, local support.
If you are tired of chasing your bookkeeper, managing handoffs between providers, or dealing with surprise bills at tax time, we can help. Using a bookkeeper checklist before engaging a provider can help you avoid costly misunderstandings and ensure you receive the support your business needs.
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General information only. Not financial or accounting advice.
Frequently Asked Questions
What should be included in a bookkeeping agreement?
A bookkeeping agreement should clearly define the scope of services (what is included and what is not), pricing and payment terms, who prepares and lodges the BAS, who communicates with the ATO, who owns the accounting software file, how errors are resolved, and the process for ending the engagement.
How do I know if my bookkeeper is doing a good job?
Your bookkeeper should provide timely, accurate reconciliations every month, lodge your BAS on time, respond to questions promptly, and proactively flag issues before they become problems. If you are constantly chasing them for updates or discovering errors months later, that is a red flag.
What is the difference between a bookkeeper and an accountant?
A bookkeeper records and reconciles financial transactions, prepares BAS, and maintains accurate financial records. An accountant provides tax planning, prepares tax returns, offers strategic advice, and ensures compliance with tax laws. At Cotchy, we provide both under one roof.
What happens if my BAS is lodged late?
Late BAS lodgements can result in ATO penalties. This is why it is important to clarify accountability in your agreement before you sign.
About Cotchy
Cotchy provides all-in-one accounting and bookkeeping services for growing Australian businesses. We combine monthly bookkeeping, BAS preparation and lodgement, tax planning, and annual tax returns under one roof, so you never have to manage handoffs between providers again.
Fixed monthly fees. No lock-in contracts. Responsive, local support.
Learn more about our services | View pricing | Book a free consultation
