Running a small business is a big juggling act, especially when you are on a tight budget or looking to cut costs. However, there are some things you should never compromise on – bookkeeping and accounting.
Good bookkeeping can make or break your business.
If you’ve just started a business, you may think you can reduce costs by doing a lot of things yourself. After all, you wear plenty of hats as a small business owner, so why not add bookkeeper as another role?
Or you have an established business are looking for ways to cut spending. You may be tempted to do your own bookkeeping and hire an accountant to do your end of financial year tax return. Isn’t it just recording transactions and keeping receipts?
Allow me to explain why a great bookkeeper is worth their weight in gold.
One of the reasons I started my company, Notch Above Bookkeeping, was from personal experience when working for a tax agent and dealing with my clients’ books at year end. So many of their books came to me in bad shape.
- The bank transactions were not reconciled properly.
- Files were outdated and in a mess, which meant their business couldn’t produce profitability reports.
- Old debtors were still on the books, which meant plenty of uncollected money should be written off as bad debts
As I saw this happen year after year, I knew there was a genuine need for a bookkeeping business to help small to medium sized businesses.
And so Notch Above was created to provide accurate financial data to empower our clients when making financial decisions for their business. I’ve genuinely enjoyed watching our clients grow and thrive over the years through our work together.
Here are 5 great reasons why a good bookkeeper can be one of the best investments you make for your business.
- A good bookkeeper helps your accountant do their job well
This is one of the least understood relationships in business. A bookkeeper’s role is to do the ground work for your business so the accountant can assess and advise you appropriately. Therefore, a harmonious relationship where your bookkeeper and accountant work like a well-oiled machine is imperative to your business success.
A good bookkeeper should understand what your accountant needs. They’ll communicate, clarify, and check with your accountant on important matters. Clear, direct and regular communication such as monthly meetings to review your books is paramount to a job well done.
- A good bookkeeper saves you money
When it comes to closing the book for the end of the financial year, a good bookkeeper can help your accountant spend their time on more strategic areas within your business rather than verifying the numbers. At Notch Above, the year end files and information we pass to your accountant is comprehensive and complete.
We will include draft reports such as profit and loss, balance sheet, trial balance, all your reconciled accounts covering items such as payroll, super, debtors and creditors, and an extensive checklist or note regarding your finances throughout the year. Our note will include eventful items such as if you’ve bought new equipment or vehicles for your business.
All the information provided means your accountant needs to make fewer alterations or modifications to your books. Trust me, this also makes your accountant’s life easier and they’ll thank you for it.
- A good bookkeeper helps your business thrive
Chances are you will touch base with your bookkeeper more often than your accountant. This is because the bookkeeper handles all the legwork such as sorting your documents, dealing with payment and balancing your accounts on a daily or weekly basis.
They deal with the nitty gritty details of your finances regularly. Therefore, they are the first to spot when an issue arises, such as an unstable cashflow. They can also generate reports which tell you where your business is heading, which helps your accountant when offering advice on tax or business strategies.
Good bookkeepers will also free up your time to run and grow the business. If you’ve just started a business, a good bookkeeper will set up the appropriate software, train and help you organise your finances. By using a cloud accounting software, your bookkeeper and accountant can easily work together on your books in real time. You can also access your accounts anytime on multiple devices.
- A good bookkeeper helps keep the tax man at bay
Based on your tax strategy, your bookkeeper will help fulfil all your tax obligations and claim your tax benefits. If a problem pops up, he or she can raise the red flag instantly with your accountant, rather than delay it until the end of the financial year to resolve it with your accountant.
- A good bookkeeper offers expertise in several areas
It’s not just receipts and invoices. Good bookkeepers are well versed in several areas such as payroll, super, financial reports, budget and cash flow forecasting. They keep up with the latest regulations and changes. They should also know the latest technology and software in the market to be able to recommend what you need for your business. Establishing a good process and using the right software will help you keep your finances in shipshape all year.
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Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.
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