Bookkeeping is the language of business.
And by extension, that makes your bookkeeper one of the most crucial members of your staff!
But what exactly do they do?
Understanding what bookkeeping is all about is essential if you want to understand the duties and responsibilities of your bookkeeper in Melbourne. Realising that both concepts are complementary to each other will help you explore more on this subject.
Bookkeeping is related to accounting. However, bookkeeping is rather more about record keeping of accounts than analysing those accounts belonging to a certain business.
Bookkeeping keeps a record of all transactions occurring in a business. It refers to the systematic and logical organisation of all daily financial transactions of a company.
The difference between bookkeeping and accounting
It’s true that bookkeeping is related to accounting. In fact, many assume that there’s enough overlap between the two that they can get away with only hiring one.
Besides from their shared focus on numbers however, the two are otherwise completely different roles!
Bookkeeping is rather more about record keeping and collating important financial data. It keeps a record of all transactions occurring in a business, and involves the systematic and logical organisation of all daily financial transactions of a company.
In short, it’s all about recordkeeping.
By contrast, accounting is about analysing those accounts and helping you decide where to take your business.
While an accountant’s job may sound more impactful, without a bookkeeper’s information, your accountant wouldn’t be able to do their job!
The Importance of Bookkeeping
Numbers are crucial to the success of your business:
- Sales figures
- Cash flow
These are just some of the important numbers that you need to keep your business afloat!
How are you supposed to keep track of each of these numbers?
Why, with bookkeeping, of course!
Bookkeeping helps business owners such as yourself keep track of all your sales, expenses, transfers and every other movement of money in, out and around your business. All of this information is crucial for your decision making!
Bookkeeping provides guidance on the progress of your business. In addition to serving as a metric for business performance, it also provides guidance for your decision making.
What’s more, it can also ensure that your business is in compliance with various regulations and obligations, such as GST and submitting reports and related financial documents.
Without a bookkeeper, how can you do this?
The presence of a bookkeeper saves your company time and money. Instead of wasting hours wrapping your head around reporting standards or correcting the mistakes that come with learning, you’ll have more time to focus on the things that only you can do.
Other responsibilities that a bookkeeper in Melbourne can perform for you include:
- Cash flow management
- Observing accounting metrics
- Data entry and reconciliation
- Filing of taxes
- Preparing payroll
- Preparing financial statements
Without a good bookkeeper performing all of these important tasks for you, you may find that your business…
Let’s face it, not all of us are numbers people – and that’s okay.
What isn’t okay is trying to do your own bookkeeping in spite of that – by doing so, you dramatically increase the chances of making a mistake!
Luckily, our bookkeepers in Melbourne can help.
In addition to doing all your bookkeeping for you, our team can also provide you with time-saving cloud bookkeeping solutions that turn bookkeeping from a slog into a piece of cake. Ask our team whether cloud bookkeeping is right for you today.
Making bad decisions
The numbers your bookkeeper provides you are essential in decision-making.
But what if those numbers are wrong?
DIY bookkeeping all too often leads to mistakes and errors. In many cases, these problems aren’t detected early on, frequently leading to poor decisions further down the line.
Bookkeeping involves keeping tabs on lots of different transactions, including many invoices with money that may still be owed to you.
It’s a lot of work keeping track of all these – with the amount of work on your plate, it’s easy for some of them to fall between the cracks.
And that means losing out on money you’re owed!
Invoicing is just one example of how your business may suffer if your bookkeeping falls behind. If you can’t keep up, talk to a professional, lest you lose track of some important transactions!
Who Is the Bookkeeper? And what do they do, exactly?
The role of a bookkeeper at a company is extensive, whether the business is a microbusiness or a huge one with millions of dollars in turnover.
While the primary task of a bookkeeper is to keep records of the financial transactions what exactly does that involve?.
Some of the services a bookkeeper in Melbourne may provide on a daily basis include:
- Data entry
- Organising and processing invoices
- Reconciling financial entries
- Preparing reports for the accountant’s review
- Cash flow reporting
- Superannuation payments
- IAS and BAS lodgement
- Debt collection and invoicing
- Inventory tracking
Our bookkeeping services in Melbourne offer all of these different bookkeeping tasks and more, depending on what your business needs.
Just tell us what your business needs, and we’ll put together a package of services for you, which we can perform on an ongoing basis or as one-offs when you need professional intervention.
Call Maximum Business Solutions for bookkeeping in Melbourne
There are plenty of bookkeeping services in Melbourne – however, few of them can help you like Maximum Business Solutions can!
Our bookkeepers in Melbourne:
- Have a wealth of experience
- Are Xero, MYOB and QuickBooks experts
- Have been nominated for bookkeeper of the year 2 years in a row
If you aren’t planning on hiring an in-house bookkeeper (and there are plenty of good reasons to outsource your bookkeeping), give us a call.