Bookkeeping is demanding!
Now that I have your attention let me explain. Bookkeeping is not for everyone. It’s time-consuming, can cost you if you make an error and takes you away from developing your business. Outsourcing your bookkeeping is not only smart but good business sense.
What is bookkeeping?
Bookkeeping is the process of keeping complete, accurate, and up-to-date financial records — money in and money out. Bookkeeping keeps track of accounts receivable, accounts payable, bank reconciliations, supplier reconciliation, and aged receivables and payables.
This is the information that a small businesses needs to compile accurate Profit and Loss Reports, Balance Sheets, BAS, GST, and IAS statements, and a range of budgets and estimates.
It’s an important process for any business large or small, but one that is also demanding in terms of both concentration and time.
Employing an external bookkeeper (outsourcing) can help in three ways: it saves you money, saves you time, and lowers your stress.
Outsourcing saves you money
The ATO requires clear documentation to be kept in support of taxation calculations and as part of your ongoing reporting obligations. If you fail to keep up with your mandatory reporting, the ATO may issue you with severe financial penalties — nobody wants that.
A bookkeeping service can help avoid late penalties or fines imposed for incorrect reporting. A bookkeeper makes sure that all financial information is organised and current. This also has an added advantage; an accountant will not have to charge extra time to allow for locating or processing business transactions.
A proficient bookkeeping service will be able to process your bookkeeping requirements much more quickly than a non-dedicated staff member: this saves you money by improving staff productivity and cutting down on your management time.
Outsourcing saves you time
A fulltime bookkeeper has the skills, resources, and experience to handle all of the financial paperwork with a speed and accuracy that either you or any of your other staff, likely possess. Therefore, outsourcing your bookkeeping processes, saves you from trying to handle complex and mundane tasks yourself or having to re-enter incorrect data at a later date.
Your time is best spent on the responsibilities for which you are required to do when running your own business: managing projects, meeting new clients, or developing ideas for business growth just to mention a few examples.
When you have the time to focus on attention to detail and what you are good at and passionate about, you are in a better position to deliver value to your customers/clients.
Outsourcing lowers your stress
Spending a lot of time and energy on tasks for which you are neither trained nor that you enjoy not only wastes time and money but generates stress. You are asking yourself the following questions:
- Are you processing your bookkeeping correctly?
- Do you have enough time left over to attend to other administration and management tasks or for securing new business?
- Are you able to take leave from your business and know that mandatory reporting will still get done?
A professional bookkeeping service will accommodate your needs in a cost-effective and convenient manner. Bookkeepers are able to offer both offsite and onsite options for conducting the work and discuss a plan at the beginning to manage your bookkeeping needs going forward.
Knowing that your bookkeeping is up-to-date, accurate, and taking place as needed are all factors that should help you to sleep easy at night.
Contact the friendly bookkeeping staff at The Money Edge to discuss your bookkeeping needs to allow you to spend more time on your business and not in your business.
Dougall Rudd | The Money Edge | Bundaberg