Why hire a bookkeeper, what does a bookkeeper do? (Updated 2020)

June 22, 2020

WHY DOES MY BUSINESS NEED TO HIRE A BOOKKEEPER? WHAT DOES A BOOKKEEPER DO? WHY DOES MY BUSINESS NEED A BOOKKEEPING AND ACCOUNTING PACKAGE?

Why hire a bookkkeper?

One of the main reasons though that small businesses struggle is because there isn’t a good bookkeeping system in place. A lot of small business owners are great innovators, have plenty of enthusiasm and are the best sales people around but struggle with the financial aspects of their business. Even the best accounting software is useless if you cannot input or understand the data. Engaging in bookkeeping services allows for properly kept business records which not only generates smaller accounting fees for a business but helps a business to identify quickly and accurately whats going on in the business.

What does a bookkeeper do?

A bookkeeper helps grow your business

Bookkeeping involves the accurate keeping of business records. Many business owners try to do this themselves and then find themselves stressed and running behind critical deadlines. A bookkeeper saves a business owner time and stress, it enables them to focus on growing the business.”

Setting up a bookkeeping system

Long gone should be the days where you are paying your accountant or tax agent to sort through a shoebox of paperwork. By giving your accountant well prepared records you are paying them instead to help you with your business.

It can be difficult to set up a good system without a bookkeeping background. You have the choice of setting up your bookkeeping manually (using accounting books), electronically (spreadsheets) or use accounting software, which is usually the most efficient choice.

Make sure you choose a software package that meets your business needs and the ATO requirements so it is best to consult with your accountant on the best software for your business.

What are the advantages of accounting software?

One of the main advantages accounting software is that it enables you to use your time more efficiently.

Some key features include:

✓Recording your business transactions, including income and expenses, payments to workers, and stock and asset details

✓Automatically tallies amounts and provides ready-made reporting

✓Produces invoices and provides summaries and reports for GST and income tax purposes

✓Keeps up with the latest tax rates and tax laws, and rulings

✓Allows you to report certain information, such as your activity statement, to the ATO electronically (if the package meets the ATO requirements)

✓Requires less storage space and allows you to back up records.

✓Both you, your accountant and bookkeeper can access financial information easily from different locations

Should I hire a bookkeeper?

“Businesses tend to not hire a bookkeeper soon enough”.

A bookkeeper is efficient, often completing the tasks in half the time as that is the job they do day in and day out. The most important part of a bookkeeper working alongside small businesses is to help them understand the numbers, improve the cash-flow and save money in the long term.

A good bookkeeper is able to:

✓Set up accounting systems and software properly

✓Enter transactions

✓Perform checks, reconciliations and end of year processes

✓Ensure they are up to speed with legislative requirements and management reports

✓Undertake payroll duties and compliance

✓Prepare BAS returns, as a registered BAS agent or under the supervision of a registered BAS agent

✓Provide general business administrative support

It’s never too late to save time and stress less by starting a good record keeping system or bookkeeping system for your business. Want more information on how we can support your business? We offer free, no obligation online 30 minute consultation.

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