Like many small business owners, you may have managed every part of your business when you started out but, now that the business has grown, you need to consider whether it’s time to outsource some tasks.
It’s crucial to focus on the areas of your business where you’ll have the most impact and allocate some tasks to other staff.
One of the tasks you can hand over is all the financial record keeping. You may consider hiring a qualified bookkeeper, but when is the right time to do this? Here are 5 signs that you need a bookkeeper:
1. Doing the books is taking you away from working on your business
Once you find yourself spending a large portion of your time managing all the financial records of the business while juggling other matters, then it is time for you to employ a bookkeeper.
A bookkeeper can take on duties such as processing invoices, chasing debtors, recording payments to suppliers, reconciling bank accounts and overseeing the payroll transactions. This will free you up so you can focus on other aspects of your business.
2. You’re not keeping up to date with all the business transactions
As your business has grown, so has the paperwork and record keeping. Most small business owners are time poor and they often leave the important task of updating their records until they are forced to do it – e.g. when BAS or tax return lodgement deadlines are looming. If you don’t keep your records up to date, you may uncover issues at the last minute that delay lodgement and incur penalties. This is definitely a sign that you need a bookkeeper.
3. You may not be recording everything correctly
If your accountant regularly queries and/or returns your records for correction, perhaps you are overlooking something or rushing because of time constraints. A good bookkeeper will save you a lot of stress, time and money by taking these things off your hands.
4. Tax compliance is getting more complicated
It’s very important that your business complies with ATO regulations and obligatory requirements, but adhering to them can become very time consuming particularly with continuing legislative changes – e.g. superannuation law. While your accountant will keep up to date with these changes, a qualified bookkeeper will work with them to ensure that your business remains compliant at all times.
5. Your accountant is doing your bookkeeping
If your accountant is doing this at their premises at the moment, perhaps it would be more convenient if their bookkeeper visited you instead. Alternatively, you could weigh up the cost of using that service against engaging your own in-house bookkeeper. Perhaps this latter option may suit you better.
Here at BSN & Co we have experienced bookkeepers who can help you manage your business. Visit our bookkeeping page to find out more – CLICK HERE