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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.
Beyond the convenience of managing day-to-day finances, a good bookkeeper keeps your business on track and gives you visibility over your business’ cash flow.
Still not sure it’s necessary? Here are four signs that you should be hiring a bookkeeper as soon as possible:
There’s only so much you can squeeze into one day and as a busy business owner, it’s often a case of too many tasks and too little time. When time is your currency, you need to use it wisely. If balancing books is not your passion and your time is better spent selling your products or services, or focusing on marketing, strategy, purchasing and execution, consider outsourcing your bookkeeping.
Most accounting software is accessible from the cloud, which makes for a smooth handover. With record keeping off your plate, you’ll have more time to focus on what you do best and get your work-life balance back on track.
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.
If you have attempted to do it yourself, you know the skills that are involved in bookkeeping. While many small business owners consider themselves a ‘jack of all trades,’ it’s often a different story when it comes to finances. As innocent as your mistakes may be, they can cost you.
Not only could you be recording the wrong information but misreporting any income or expenses could land you a fine from the ATO and leave you paying more than you should. A bookkeeper essentially takes all your numbers, receipts, bills and invoices, and records them correctly into your accounting software. Once your books are up to date, that information is either lodged to the ATO as BAS or sent onto your accountant to lodge on your behalf.
It’s not just data entry errors you need to think about, it’s also keeping on top of compliance. A bookkeeper can set your records straight from the start, keep your business compliant and give you peace of mind that your checks and balances are in perfect order.
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.
Running a small business isn’t easy. In between making sales and keeping suppliers and staff in check, there can be little to no time left for the things you love. If you find yourself working nights and weekends to get your books in order, seek help from a bookkeeper.
H&R Block bookkeepers can help you with invoicing, accounts receivable and payable, payroll processing, superannuation, bank reconciliations, BAS preparation and lodgement, debtor management and tax return preparation.
With expert set up and support, our bookkeepers will take the time and hassle out of managing your books, leaving you more time to get on with business.
For more information, find your nearest H&R Block office or call us at 13 23 25 today.
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