Question: What do bookkeepers do and how does it benefit business owners?
Small business owners can shy away from hiring a bookkeeper because they don’t fully understand what the right bookkeeper can do for their business. Other business owners have had bad experiences with hiring the wrong bookkeeper and are now unsure about hiring the right one.
This is something I have encountered over the years and often been called in to rectify accounts and put proper procedures back in place.
What is bookkeeping?
It is a consistent system which must be maintained to receive the valuable financial information for decision making. The consequence of not keeping this system correctly results in business decisions based on false information.
This normally happens when entries:
· are made without understanding the requirements of the end user
· not understanding what the transaction is and how to deal with it
· not reconciling the accounts
Who is the right bookkeeper and how will it be beneficial to your business?
The right bookkeeper for you will:
· reconcile your financial statements, meaning not just your bank statements but also the credit card statements, and the loan or lease payment statements
· will process customer invoicing and receipting (accounts receivable)
· will process supplier payments (accounts payable)
· reconcile the accounts receivable and payables
· perform inventory management and reconciliation
· process payroll
· ensure the database for the debtors and creditors is correct and up to date
· improve bookkeeping process with the latest updates in software and technology
· and if BAS registered, will complete and lodge BAS and IAS returns
How does this benefit my business?
· Up to date accurate financial information will facilitate confident business decisions. Staying at one step ahead of the competition.
· Freedom to focus on your core business activities. Let’s not forget why you went into business in the first place.
· Knowledge and expertise of compliance at your fingertips.
· Freedom of time to cultivate the creativity of your business.
· Let’s face it, we’re not experts in all aspects of running our businesses and hiring the right talent keeps the business running smoothly.