In this article, we explore the top five reasons every business should consider hiring a bookkeeper and the benefits that can be achieved. Many business owners often find themselves being a jack-of-all trades when they start out. Before long, they find themselves managing each function of their business including management, marketing, administration and inventory as well as keeping on top of invoices and payroll. Inevitably, too much time is spent looking after certain areas of the business diverting time away from the true passion and single thing that had them start the business in the first place. Does this sound familiar?
All too often, small business owners feel they can’t afford the services of a bookkeeper or accountant and choose to continue performing these functions at the expense of other priorities. What they don’t realise is that hiring an external bookkeeper can usually end up saving you money and time, because ultimately, they’re the experts in managing finances. By using well developed systems and processes, not to mention tapping into their expertise, bookkeepers will deliver efficiencies and higher quality accounts allowing you to focus on what you do best.
Accuracy of and up-to-date record keeping
Almost every day you’re required to make decisions for your business and all too often these decisions require a quick turnaround. Being nimble in your decision-making means having the correct and most up-to-date financial information at hand. A good bookkeeper can enter your business transactions daily, so you know your information is always current and correct.
Management of accounts payable and receivable
As your business grows, so does the amount of incoming and outgoing bills and it’s crucial to always be across payment dates and terms. Having a bookkeeper on board ensures you’re paying your invoices (and tax!) on time. They will also keep your accounts receivable up-to-date so you know if your clients are paying you on time, prompting you to chase those that may be falling behind. You can go to sleep knowing that your business’ financial record keeping will always be current and no one will be knocking down your door wanting to be paid.
Knowledge and interpretation of financial data
Your bookkeeper will know your business’ transactions as well as you do and provide you with the knowledge and insight into your data to help you better understand your financial position and make informed decisions. They will also be able to keep a regular eye on your profit margin and suggest tweaks that can be made to ensure you’re always on the right path to reaching your goals.
Compliance and reporting / lodgement
There are many legalities and practices that every business must adhere to and follow on various matters in order to run legally and effectively. The Australian Tax Office (ATO) is one regulatory body in Australia to which businesses must report and lodge business documents correctly and in a timely manner to remain compliant. There are areas of business including paying your staff, single touch payroll, superannuation, business activity statements and insurances where accuracy and timeliness is critical to avoid penalties imposed by such bodies. This is where a bookkeeper can undertake these functions for you ensuring nothing is ever missed.
Saves you time and money
Doing your bookkeeping yourself may seem like a money-smart decision, however having a professional on board will ensure you’re making your lodgements by their due date, your data is compliant, you’re paying your bills on time avoiding late payment and interest fees, your information is always current and provide you with accurate feedback and advice.
So, what are you waiting for? Contact Arabon and speak with one of our experienced and caring bookkeepers who can answer your questions and advise which of our monthly packages may suit your business best. Call us on 1300 ARABON or visit our website.