Are you still undecided as to whether hiring a bookkeeper will be worth it for your business?
Wonder no more – to help you make your decisions (which if you ask us should be a “yes”), we’ve put together this article explaining how a bookkeeping service doesn’t just improve your business, but also helps make your life easier.
So you’ve tried doing bookkeeping on your own but ended up frustrated, disorganized and worse, confused.
Here’s an idea: why not outsource your bookkeeping and let an expert help you improve the financial aspects of your business and give you your time back?
If this sounds promising, then a bookkeeper in Melbourne might be perfect for you.
How does bookkeeping improve your business operations?
Your business’ finances are the most important part of your business – it’s why you got started in the first place, after all!
Properly-managed finances are key to keeping your business afloat. Without organized bookkeeping, you’re effectively flying blind, which can make managing your business hard and easily result in you taking the wrong path.
Big or small businesses alike always need to make sure that their bookkeeping is well-managed, accurate and timely.
Not convinced? Most businesses that fail do so because of poor finances – something that’s often exacerbated by poor bookkeeping management.
Make no mistake, good bookkeeping is pretty darn important for improving your business operations!
Keeps your business well-funded
Want to attract more investors for your business? Start cleaning up your business bookkeeping!
Whether it’s a bank loan or someone who wants to buy in and become a partner, bookkeeping records are essential. Put yourself in their shoes: you’d want to know about your cash flow, expenses, revenue and more.
If you are thinking about investing, partnering or buying a business, you’d probably be interested in how you manage your cash flow bookkeeping, budgeting, debt management and many more pieces of financial information.
All of which is information that an updated and accurate bookkeeping system can provide. Accurate bookkeeping can potentially help you get funding by letting people know what they’re getting into.
By contrast, if you happen to show them a disorganized and outdated financial report, they’re probably going to start doubting if partnering with you would be a wise decision to start with.
While profit/loss statements are the purview of accountants rather than bookkeepers, the humble bookkeeper still has a vital role in providing this information.
To put together a profit/loss statement, your accountant needs accurate records about your day-to-day finances, including inflows, outflows, expenditure, GST owed and more. How are they supposed to obtain these details if you only see them once a quarter?
Answer: by liaising with your bookkeeper.
Bookkeeping gives you a projection of how much you bring in, how much you spend and how much you owe within a particular period, all of which are essential for accounting documents.
Simply put, you cannot accurately measure your ROI, profitability or anything like that without accurate bookkeeping.
All the more reason to look at your bookkeeping processes!
A bookkeeper in Cheltenham makes sure that all business transactions from income, debts, and sales are recorded correctly for accountants to use when analyzing, classifying and interpreting any financial data that can help the business owner.
Good bookkeeping helps you budget
The business budget is one of the most important financial documents in your entire operation.
And you can’t make a budget unless you already know where you stand currently!
The first step in building a budget is finding out how much money you spend, as well as how much revenue you bring in.
Evaluate and focus on specific products and services
How well do you know aspects in your business that need more improvement or very profitable?
In addition to giving you the big picture, bookkeeping can also help get a better idea of how specific products and services are selling.
Ideally, your bookkeeping should be divided into product categories, allowing you to measure revenue by specific offerings and develop business solutions accordingly.
That way, you can make decisions regarding specific items and services, such as:
- Which products are underperforming
- Whether certain services are too expensive
- What has the highest margins
- Whether or not you’re making a loss on any goods or services
All of this information can help you further down the line, when you need to make tough decisions about where to cut costs, which products and services to terminate and which ones you should be promoting heavily.
How do I start? The most important features of bookkeeping
Three of the most important features of bookkeeping is accuracy, timeliness and relevancy. No matter the business transactions, it’s imperative that your numbers tick all three of these boxes.
Unfortunately, for many business owners, their bookkeeping lacks one, two or even all three of these crucial elements!
Obviously, records that are inaccurate aren’t going to help you much. However, it’s just as important that your records are timely and up-to-date as well – what use are cash flow figures from last month in making this month’s financial decisions?
Why is a bookkeeper important in a business? How our small business bookkeepers make your life easier
It’s a matter of time: get your time back
We know how keeping financial records on your own can take so much of your time each very day and week. Whether it’s manually entering records, correcting errors or typing up reports, a lot of time goes into bookkeeping.
A bookkeeper in Bayside helps you get your time back by taking all of this work off your hands and even automating it thanks to cloud bookkeeping, allowing you to focus on managing other important aspects of your business.
You’ll get to focus on what you do best: running your business!
Complies with tax requirements
GST calculations can take up a considerable amount of time, especially with the number of goods you sell and services you provide. Not only do you have to record GST owed and GST paid, but you’ll also need to generate BAS/IAS statements that list your net GST.
And we haven’t even gotten started on things like luxury goods tax, payroll tax, import tariffs and more.
While this is usually the territory of accountants and not bookkeepers, that doesn’t mean that we can’t help. We can set you up with cloud bookkeeping platforms that automate this step, calculating your GST and tax situation for you.
Tax filing can be daunting, especially if you are not familiar with the tax processes; that’s why you need a bookkeeper in Brighton who will help you compute accurate tax information payments and pay them on time.
Helps you manage your debt
Debt collection and management is one difficult area that business owners find hard to deal with. Many feel uncomfortable chasing up invoices or simply lose track of their own debt.
Bookkeepers help you to effectively manage your debt so you can work to better your business.
- Tracking your debts and due dates
- Following up on invoices owed to you
- Setting up automated reminders using cloud bookkeeping
When you have a certified and professional bookkeeper in Malvern, they can also chase debtors and even set up an efficient collection system that helps you track long-standing debts – both yours and your clients.
Improves cash flow (and why it’s important to manage cash flow)
In order to improve your cash flow, you need to know what your cash flow situation looks like!
Bookkeepers help you monitor and track any changes in your cash flow at a specific time, either taking care of the process for you or setting up a system that does it automatically, and which ensures that your cash flow figures are up-to-date.
Upon monitoring your cash flow, business owners can make necessary payments in debts and investments to further improve your business cash flow.
Good cash flow management helps your business survive by ensuring that all of your expenses are covered, and helping keep up with payments.
With proper cash flow management, business owners would know how much money has been spent, saved, and what’s left to sustain all business activities and operations.
Why should you hire a bookkeeper?
Business owners may feel overwhelmed with the amount of time and effort they have to devote to keeping up with their finances and accounts.
This is why hiring a bookkeeper in Richmond can be just what you need to get your time back. On top of helping you have a clean and well-managed financial account, bookkeepers also help your business by:
Providing various services
Outsourced bookkeeping services in Melbourne provide a wide range of bookkeeping solutions for your business.
Some of the accounting and bookkeeping services we provide include advanced bookkeeping solutions that dealing with various complexities in your business accounts.
Uses advanced tools
Bookkeepers use faster, easier and more sophisticated bookkeeping solutions, allowing us to get the job done faster – by contrast, most business owners are still using spreadsheets, and some are still doing their bookkeeping by hand.
Bookkeepers have training and certifications in cloud bookkeeping platforms such as Xero and MYOB. They will make your bookkeeping in Melbourne simple and easy, along with your business tax, payroll, and other accounting processes.
And we can set you up with a custom cloud bookkeeping solution to help you save time!
H3> You’re hiring an expert
When you hire a bookkeeper instead of doing it yourself, you are also hiring a professional who’s skilled and experienced in their field.
Experienced bookkeepers have a range of qualifications and experience in a number of different fields, which can greatly contribute to your business and help you with your bookkeeping and financial needs.
Growing your business?
Hire a bookkeeper in Melbourne!
Save time and save money when you hire a bookkeeper in Melbourne.
Get the best outsourced bookkeeping services by getting all your business accounts and financial issues sorted out by the experts.
Maximum Business Solutions provides bookkeeping services to all types of businesses across Melbourne.
Our team of qualified, experienced and transparent bookkeepers providing you with a variety of bookkeeping services such as:
- Account management provisioning
- Payroll processing
- Audit preparation
- Cloud software implementation
- Ongoing management
- Business Activity Statements (BAS)/ Income Activity Statement (IAS)
Find out how we can make your life easier today – call us on (03) 9589 0128 for a reliable and transparent bookkeeping service in Melbourne today.