Having a bookeeping system is an essential part of any business. In Australia, there are legal requirements for keeping financial records relating to your business activities.
You may throw all your receipts invoices and dockets in a box somewhere and forget about them. Then you get a letter from the taxation office asking why you haven’t submitted any tax returns for five years and suddenly you panic!
The thought of wasting a couple of hours a week doing bookwork when you could be making another sale of spending quality time with the kids means that many small businesses do not keep up to date with the paperwork. Here’s a dozen reasons why you need bookkeeper:
1) A bookkeeper can spend that couple of hours a week keeping your paperwork up to date so you can relax or work more on your business
2) A bookkeeper does bookkeeping for a living, so that they will not only spend less time doing the books than you would take, they know what they are doing, and have to be efficient and accurate in their work so you will have correct financial information
3) A bookkeeper understands the need to access financial records quickly and easily –so all the receipts that you would have thrown in a shoebox somewhere, will be neatly sorted and filed by your bookkeeper saving you so much time when you your are looking for the proof of purchase for an item you need repairing
4) There’s a legal requirement to have your business financials in order. If the taxation department decided one day to undertake an audit on your business, wouldn’t you like to know that your books were up to date, giving them less time and less opportunity to snoop around in your affairs
5) Have your bookwork in order means that if you need to make a quick business decision that could affect you financially, you’ll have all the relevant information at hand to help you make the best decisions
6) With a bookkeeper working regularly on your financials they’ll see patterns emerging and can bring matters to your attention that you may have overlooked. Generally by the time your accountant sees your figures, (which could be months, or even years after the event) your circumstances could well have changed, and the figures they see would not be a true reflection of your current situation
7) Well managed bookkeeping will provide you with financial statements such as Profit and Loss and a balance sheet. They are also needed if you are applying fro credit from vendors or financial institutions
8. ) Keeping up to date with your paperwork avoids the risk of late payment fees, penalties and fines
9) Have you ever had a creditor chases payments, and in a panic you make a payment, then later you realise that you had already settled the account so you’ve ended up paying twice? Having a bookkeeper would reduce that risk, because they would ensure that you are aware of which accounts have been paid, and which accounts are outstanding
10) Your bookkeeper can quickly provide you with reports so you can track your sales patterns, any peaks and slow times, so you can plan ahead for such events
What may be mundane and boring to you is an enjoyable task for your bookkeeper, so you don’t need to put off the “inevitable”, your bookkeeper can relieve you of the hassle and stress of facing a task you really do not want to do but know it should be done.
When it comes time to sell your business, buyers will be able to see the true value of the business that you have worked so hard in developing
Regardless of the size of your company, good bookkeeping practices are essential to keeping your business running smoothly. Accurately kept books do more than make it easy to file your annual tax returns. Banks may require you to submit a profit and loss statement or balance sheet so they can determine your credit-worthiness. A quick review of your books can show where you need to spend more or less money; who gives you the most business and who takes the longest to pay you; how much you’re paying out in commissions compared to how much you’re selling.
Correct bookkeeping will save you time and money in your business. If necessary, the bookkeeper may contact your accountant and work in tandem with them to solve finacial problems. Often the Business Activity Statements (BAS) and general accounting procedures are done incorrectly made because the bookkeeper doesn’t understand the software or the wrong accounting codes used. Thes probles can be fixed with the help of our experienced bookkeepers.
As freelance bookkeepers, we can install the latest Myob or Quickbooks accounting software as well as train you to use use it correctly.
Having a bookkeeper to keep your records ready for your accountant will save you a significant amount of on accountancy fees. A bookkeeper will charge less than if you use an accountant to complete these financial tasks.
We will set up accounting software correctly to manage your books methodically and provide you with financial reports so that you won’t get lost in a financial maze again.
Benefits of engaging an independent bookkeeper include:
• By paying hourly, you only pay for what you use, so you’re not paying for downtime.
• You reduce overheads by not having to pay (Pay As You Go) PAYG tax, holiday and leave loading, Superannuation, Workcover, sick pay and meal breaks.
• In quiet times you’re not paying for another staff member that you don’t need.
• You can claim all expenses involved in engaging an independent bookkeeper.
• You’re not having to pay to train a staff member to do your bookkeeping, and then find that your staff member has moved on before you see any benefit.
• By engaging an independant bookkeeper you are paying a fully trained expert in their field, saving you time and money
• No training necessary
Contact us today on 0415 453 536 and we will save you time, money and stress, no matter how big your bookkeeping mess.
