Regardless of whether you’re a sole trader running a salon or a fast-growing startup with payroll tax, every business needs a bookkeeper. While it’s possible to learn the bookkeeping basics, as a business owner, your time is best spent growing your business. With your eyes firmly planted on running and growing your business, recording your financial transactions and keeping your books in order is best dealt with by an expert.
3 signs that your business needs a Bookkeeper
#1 YOUR ACCOUNTANT IS DOING YOUR BOOKKEEPING
Asking your accountant to do your bookkeeping is like asking a lawyer to do your admin. Accountants are generally more qualified than bookkeepers, so you’re paying a premium for that skill set. If your accountant is preparing your books and getting your records in order, you’re probably spending too much. A good bookkeeper can help reduce your accounting costs by preparing clean books to hand over to your accountant.
Depending on the size, scale, and nature of your business, outsourcing your bookkeeping is usually more cost-effective than handling it in-house. An external bookkeeper is not distracted by the comings and goings of your business, their sole job is to manage your books and keep your records organised and compliant. Using online accounting software, a bookkeeper can remotely work on your accounts in real-time. As your business scales, your bookkeeper can work with you, taking on more or less as you need it.
A good bookkeeper will help your business through all stages of starting and growing. As they are an extension of your business and the keeper of your records, it pays to hire the right one.
#2 You always rush to meet BAS deadline
When you are constantly busy and find yourself rushing to meet BAS deadlines then you might need help. According to the ATO here are some BAS and GST record-keeping tips:
- Keep records of all sales, fees, expenses, wages, and other business costs
- Keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims
- Reconcile sales with bank statements
- Use the correct GST accounting method
- Keep all your tax invoices and other GST records for five years
A bookkeeper can ensure that all the above documents are in order and available when needed. Engaging an experienced bookkeeper will also ensure that you meet your ATO obligations on time, avoiding late fees or penalties, and save interest on payment arrangements.
#3 Your Books are never up to date – A growing pile of documents
Trying to keep up with bookkeeping after working all day or all week could become difficult as you might need rest and time with the family. As soon as you start postponing your bookkeeping duties to the next day, it will only lead to a growing pile of paperwork. A bookkeeper will ensure you have the right financial checks and balances to keep your business on track while reducing the paperwork that you need to do.
There’s a reason why cash flow is king. Without it, you’ve got no transparency over how your funds are tracking or the ability to do any future planning. The reality for most small business owners is that your paperwork grows with your business. Leaving your paperwork until the last minute can put your small business in a precarious situation and land you in trouble without you knowing it.
If you have no idea whether you’re trading profitability or what cash flow looks like, you need a bookkeeper. While an accountant gives you strategic advice and manages your tax returns, a bookkeeper plays a more hands-on role in keeping your cash flow under control. Financial transparency allows you to be proactive about growing your business and ultimately lets you plan and forecast without risky guesswork.
Our bookkeepers will take the time and hassle out of managing your books, leaving you more time to get on with business.
Contact us today on 0419 009 804