Let’s face it – accounting fees can get expensive, especially if you’re relying on your accountant to also act as your bookkeeper. But if you had a great bookkeeper working with your business, it may be possible to reduce your accounting fees and minimise the time it takes to keep your business records in good order.
You see, a top quality bookkeeper has plenty of experience with keeping business’s books in good order. They also have lots of experience and knowledge about what things they can look for to help reduce any potential tax liabilities.
Here are some of the biggest advantages to hiring a great bookkeeper:
Time Management
If your business is still small and you spend a lot of time on bookkeeping duties yourself, you could find that a bookkeeper can get the same amount of work done in a much faster time than you can. This leaves you free to work on other aspects of your business where your talents may end up being more profitable. You don’t have to worry about the time you spend on admin tasks, knowing your books are in good hands.
Aside from this, your bookkeeper is also able to liaise with your accountant regarding things like your BAS lodgement. They can help to prepare and compile your files ready to hand over to your accountant when it’s time to lodge your tax return. This also saves you the time and effort of doing these things yourself – or getting your accountant to do them for you.
Improved Cash Flow
A good bookkeeper allows you to more effectively control your business’s cash flow in several ways. Your bookkeeper can provide you with reports about your profit & loss, or even your current financial position at any time, allowing you to make management decisions based on accurate information. A bookkeeper can also chase up unpaid invoices, freeing up cash flow sooner, and may even offer services to reconcile your business banking accounts as well.
Greater Control over the Business
Having all your records organised by a good bookkeeper can increase the level of control you have in your business. When you have access to someone who can generate reports about the intricate details of your business at a moment’s notice, you can then work out where you might be able to improve.
This might mean having a clearer image of where your expenses may be increasing. It may shed light on a better idea of where your sales figures may be suffering, or whether you’re holding too much stock or whether you haven’t been as diligent as you should have been in chasing up unpaid accounts.
Expertise & Knowledge
When you hire a bookkeeper that has lots of experience, you suddenly have access to someone with heaps of knowledge and expertise about helping you reduce your tax liabilities. That person should know exactly when certain tasks need to be completed and lodged so you don’t incur penalties for late lodgements for things like your BAS.
With all these tasks taken care of by a top quality bookkeeper, it should be apparent how beneficial this can be for your business.
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