Perhaps you\u2019ve been trading for a while now and have never enlisted the services of an advisor of any kind. But now you\u2019re only just beginning to wonder whether your operations could benefit from hiring a good bookkeeper.<\/span><\/p>\n To ensure your small business is afforded the best chance of success, it\u2019s time to understand why you need bookkeeping services.<\/span><\/p>\n \u2018Why do I need bookkeeping\u2019? This is a common query amongst small business owners, especially those just starting out in the small business world.\u00a0<\/span><\/p>\n You may see it as an unnecessary expense, or perhaps you\u2019re simply not aware of the value that bookkeeping services will bring to your operations.<\/span><\/p>\n Many Australian small businesses seem to believe they don\u2019t require the services of an accountant or a bookkeeper and can save money by managing these tasks themselves.\u00a0<\/span><\/p>\n It may be so that you can survive and even thrive without one. However, once you realise the raft of benefits advisory services unlock, you may alter your viewpoint.\u00a0<\/span><\/p>\n Does your small business need a bookkeeper? Let\u2019s analyse the benefits of hiring a bookkeeper and the tasks to undertake to find out.<\/span><\/p>\n What does a bookkeeper do for you? What are some common bookkeeping tasks?\u00a0<\/span><\/p>\n Why do you need a bookkeeper at all, and if so, when should you hire one? These are important questions that will affect the very operation of your small business and the decision shouldn\u2019t be taken lightly.<\/span><\/p>\n Professional bookkeeping services shouldn\u2019t be seen as an expense, but rather an investment in your business\u2019s prosperity and future stability.\u00a0<\/span><\/p>\n Hiring a bookkeeper help keep you financially fruitful, compliant and risk aware. But their services will also free up your time to focus on sales, marketing, employees, and other business priorities.<\/span><\/p>\n Key reasons why you need to hire a bookkeeper:<\/span><\/p>\n By assisting you with payroll, super, BAS, receipts and business expenses, a good bookkeeper will nullify any guesswork when it comes to compliance. Better still, they can help you maximise the potential of any tax breaks, schemes (like IAWO), grants or tax exemptions.<\/span><\/p>\n A good bookkeeper will be looking for any potential savings in terms of cash flow enhancements, suppliers, financial products, expenses, and overheads. It\u2019s their job to make sure your business is as lean as possible to reduce unnecessary expenditure and maximise savings and revenue.<\/span><\/p>\n A bookkeeper will also usually gain access to your accounting software to manage day-to-day data entry and compliance. They can be tasked with ensuring your data is recorded correctly and in the right place.\u00a0<\/span><\/p>\n A bookkeeper will make use of your accounting software to focus on the following:<\/span><\/p>\n A bookkeeper will enter data into your accounting software and ensure timeliness and accuracy.<\/span><\/p>\n They can manage all your business expenses, ready for tax deduction claims, and ensure receipts are recorded properly.<\/span><\/p>\n A good bookkeeper will also use your accounting software to provide regular reporting. This includes cash flow, budgets, balance sheets and profit and loss. These are then used by the business owner to make better financial decisions and understand their position with more clarity.<\/span><\/p>\n So when should you be hiring a bookkeeper? There\u2019s no wrong answer necessarily, but there <\/span>is<\/span><\/i> one particularly correct answer: immediately.<\/span><\/p>\n When you first get your business off the ground, the services offered by a bookkeeper should usually be engaged straight away.\u00a0<\/span><\/p>\n The reason for this is that they\u2019ll have particularly pertinent advice and services that will affect the way you set up your business.<\/span><\/p>\n Instead of making financial and structural decisions on your own, you\u2019re best served consulting with a bookkeeper first.\u00a0<\/span><\/p>\n They\u2019ll head off any unwise decisions before repercussions are felt. They\u2019ll reduce the amount of reconfiguration or workflow changes that would eventuate from gaining advice later in your business\u2019s lifecycle. As they say, prevention is better than a cure and this holds true with bookkeeping.<\/span><\/p>\n There are a lot of misconceptions when it comes to the difference between a bookkeeper and an accountant. Let\u2019s clear them up so you can better understand the difference between their services.<\/span><\/p>\nDoes a small business need a bookkeeper?<\/span><\/h2>\n
What does a bookkeeper do?<\/span><\/h3>\n
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Why and when do you need to hire a bookkeeper?<\/span><\/h2>\n
Why you need to hire a bookkeeper?<\/span><\/h3>\n
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<\/span>By accurately reporting on your cash flow, expenses, revenue, accounts receivable and more. A bookkeeper helps keep your business afloat and financially viable. By reporting any risks you need to be aware of and ensuring you have an accurate and full view of your business finances, you can always be confident of your position.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n
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Bookkeepers and your accounting software<\/span><\/h3>\n
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<\/b>A bookkeeper will keep track and record all your invoices and receipts in your solution, including accounts receivable and payable.<\/span><\/li>\n<\/ul>\n\n
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<\/b>They can manage your payroll processes and ensure accuracy and timeliness as well as ATO compliance and super concerns.<\/span><\/li>\n<\/ul>\n\n
<\/b>Most accounting solutions have direct bank feed functionality. They can be directly managed within your solution by your bookkeeper by downloading banking information and reconciling accounts.<\/span><\/li>\n<\/ul>\n\n
When do you need to hire a bookkeeper?<\/span><\/h3>\n
Should you hire a bookkeeper or an accountant?<\/span><\/h2>\n
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