Every business, regardless of size, needs to manage its finances. Larger companies may have a dedicated finance department, often with a qualified accountant or financial manager on the payroll.
Smaller businesses, however, have less resources to work with. Many small business owners, or their administrative employees, are required to take responsibility for the day-to-day financials, often with very little training or experience.
The focus of a small business is to produce the best product or service, grow a customer base and build a strong brand. Bookkeeping is often an afterthought, and let's be honest, a bit of a nuisance.
When starting out, business owners know they need to purchase some kind of accounting software like Xero, MYOB or Quickbooks. They have the very best intentions of keeping their financials in order, but without proper training, experience or time to dedicate to it, the books fall by the wayside.
Debtors become out of control.
Bills aren't paid on time.
ATO obligations aren't fulfilled.
The business owner ends up feeling overwhelmed, knowing they have a problem, but have absolutely no idea how to fix it.
Let's rewrite the story. Here's 8 reasons hiring a Bookkeeper is a great idea.
1. You can stay out of what you don't need to know or understand
A qualified Bookkeeper has done the training and is required to stay abreast of any changes to payroll, superannuation and tax legislation. It's their job to know what your obligations are and what is required from your financials. As a business owner, you can focus on growing your business, knowing that your Bookkeeper is managing your financials in a thorough and lawful manner.
2. Silly accounting mistakes are avoided
No matter how business savvy you are, unless you have a solid background in finance, you are at risk of making mistakes when you manage your own books. There are certain things a Bookkeeper is trained to look for, that you might miss. A problem that might take you hours to understand and fix, could be sorted by a Bookkeeper in a few minutes. Quality Bookkeepers know what they're doing, and have access to the right channels and resources to find solutions for you.
3. Cash flow will improve
It's true, a Bookkeeper will cost you something. But you've got to spend money to make money, right? Having a Bookkeeper in your corner means you have someone who cares about your cash flow and will work hard to ensure your debtors are under control and bills are paid on time. You'll also have someone to analyse your business spending habits and advise how you can consolidate expenses or debt to increase your cash flow.
4. Debtors will be under control
For many small business owners, clearing outstanding invoices is a constant battle. You want to get paid, but you simply don't have the time or desire to call your customers and chase payment. You might even have those difficult customers that are constantly in arrears, and you're at a loss as to how to get them to pay up. This is where a Bookkeeper can step in as a go-between. They'll chase payments for you and follow up customers in arrears until accounts are up to date.
5. ATO obligations will be met
A Bookkeeper, especially one who is also a BAS Agent, will be able to fulfill your ATO obligations on time and keep track of deadlines so you don't have to. This includes BAS, IAS, Single Touch Payroll and Superannuation lodgements. Plus, a quality Bookkeeper is a stickler for record-keeping, so you can rest assured that your forms and digital records are safe and in order, should they ever need to be accessed in the future.
6. You can focus on your core business needs
As a business owner, your job is to think about the health of your business as a whole. You have a responsibility to manage your employees, grow your customer base and ensure you're delivering the best possible product or service. You need time to dream, brainstorm, and plan the future of your business. Hiring a Bookkeeper gives you the freedom to work on your business, not just in it. As an owner, the most valuable thing you can give to your business is you.
7. You'll have better work/life balance
Starting or running a business takes a lot of effort. Your work/life balance is often pretty poor, especially in the beginning. Managing your own financials usually means dedicating nights or weekends to raising and sending invoices, paying bills, chasing debtors, reconciling bank accounts, paying employees and trying to sort out your BAS and ATO obligations. But it doesn't have to be this way. Imagine finishing your work day, knowing someone else is thinking about these things, so you don't have to? Bliss.
8. You'll gain a different perspective of your business
Although you might feel your have a fairly good idea of where you're sitting financially, it can really help to have another set of eyes looking at the financial health of your business. A Bookkeeper can run reports to show you how you're doing each month, where your pitfalls are and what is really working for you. This allows you to see your business clearly and make changes accordingly.
A quality Bookkeeper is an extremely valuable addition to your business. Contact us today to find out how Valley Bookkeeping Solutions can partner with you to establish good financial health and a future for your business.