Posted on 12 July, 2018 in Advice, Cash Flow, Employers, PAYG, Small Business, Tips, Xero

I don’t need a bookkeeper… do I?

Have you been having a crack at doing your own bookkeeping? How’s that working out for you?

41% of small business owners who start out managing their own bookkeeping eventually realise that there is a better way! Outsourcing to a professional bookkeeper has never been easier and has heaps of benefits.

I get it, it’s a big step for a small business owner to take, sharing intimate financial details with a complete stranger. However, as a first step, take confidence in knowing that you are dealing with an accounting professional who is qualified and holds your trust in the highest regard. Make sure you and your bookkeeper are a good fit and that you respect each other’s work ethic. A bookkeeper becomes integral to a business so that trust and transparency at the beginning is super important.

Now that you’ve built trust- let’s get into the practicals. How many hours per week do you spend doing your own bookkeeping? What’s your hourly rate? This is where we drill down into the cost/benefit of outsourcing the bookkeeping function. Most tradie’s, before engaging a bookkeeper, are spending 4-5 hours per week invoicing, paying bills, processing payroll, chasing money, and trying to reconcile their bank accounts. Multiply those 4-5 hours by your hourly rate and, hey-presto… there’s your current cost and lost productivity. (oouch that’s a lot isn’t it?!)

Outsourcing really does save you money when you confront the reality of ‘DIY Bookkeeping’ practically. The added benefit of course is also knowing that a professional is looking after your books, giving you that unbeatable piece of mind.

Engaging a bookkeeper is not a short term solution, the relationship will build over time and before you know it, you can’t imagine a world without one! This can be a bit of a daunting prospect for some business owners. To help you navigate through this world of professionals, here’s an easy run-down of what you should expect when you outsource…

Things you should expect from your bookkeeper;

  • minimum monthly reconciliation of bank accounts
  • Payroll reconciliation
  • Regular superannuation payment schedule
  • GST reconciliation
  • BAS and IAS lodgement in line with ATO timeframes
  • Financial reports showing how your business is performing

Things your bookkeeper expects from you;

  • timely response to queries
  • Clear communication about changes happening in your business
  • receipts

Now it’s your turn- take those steps towards outsourcing and reap the awesome benefits!!

Kath xx