It may appear strange an accountant is suggesting a bookkeeper; after all, we mainly do the same job, don’t we? The short answer is no. Bookkeepers and accountants way and deal with financial information from different perspectives and for that reason may offer insights at two different levels.
With the climb in automated alternatives for banking, bookkeeping, accounting and almost everything else it is straightforward for the traditional jobs of bookkeeper and accountant to overlap.
However, there are five major explanations why your business needs both a bookkeeper:
Accurate financial data
Running a successful business is reliant on the dog owner or manager can make essential decisions quickly with consideration of all available information. Whether this is the decision to take on a large job necessitating additional equipment and resources or to finance or rent a photocopier, it is vital that you have got up-to-date financial information. Your transactions joined regularly and accurately can sometimes make the difference between success and individual bankruptcy.
Management Of Obligations And Receipts
The demands of a business owner seem to be never-ending and guaranteeing charges are paid on time, and BAS are lodged are just some of the many duties you have to keep up with. Having all your expenses, invoices and liabilities documented within an accounting system is a superb first rung on the ladder, and subsequent automated alerts and reminders are important. Because your bookkeeper is witnessing transactions on a regular basis, they often have greaterknowledgeof what payments need to be made, or what receipts are outstanding over a particular period. They can be sure you do not miss anything important.
Let’s face it; sometimes it seems as if accountants are speaking an alternative dialect. A bookkeeper knows your business’s deals almost as well as you do and will often provide the functional perspective to your accountant’s more academic observations.
For instance, if your accountant questions why your gross profit percentage is merely 5% this one fourth instead of 20%, your bookkeeper may explain that this is a timing issue – you have a few invoices that were issued overdue while suppliers were paid promptly, however, this will even out over the entire year. A bookkeeper has anunderstanding of your day-to-day funds that lots of other advisers will not. Working carefully with your bookkeeper and accountant allows you to keep on top of any potential problems or opportunities which may otherwise be forgotten.
It appears counter-intuitive because your bookkeeper will undoubtedly require payment because of their services but hire a bookkeeper can save your valuable business not only money but also time and possibly your sanity!
- Having bills paid and receipts accumulated promptly can help even out cashflow and save on following fees and interest.
- Banks, funding providers, and suppliers appreciate clients who are in charge of their budget and will look at funding applications favorably.
- Accountants love clients who come to them with appropriate, up-to-date data as it allows them to prepare financial claims and taxation statements more comfortable and allows the possibility to offer more proper advice and analysis.
- Instead of spending hours weekly muddling your way through your catalogs, you can be out drumming up a business or doing the work you love.
Some people love bookkeeping and do it well. If it is the high light of your week, then, by all means, continue to do your accounting. At businessDEPOT,we have reduced bookkeepers Melbourne and also work meticulously with some local bookkeepers to ensure our clients have access to the data and insights they need to empower the excellent ideas.
For more information: http://www.bookkeeperco.com.au