If your business is taking shape, the next thing to think about to ensure that the business is in the right direction, is to keep records accurate and up-to-date.
Not only are these considered a legal requirement, but one of the good practices to follow so you can manage your business effectively. You should keep track of your expenses, sales, salaries and bank transactions. While this may really sound complicated for those who are starting a new business, it can be quite manageable once you develop good bookkeeping habits.
Should you hire a bookkeeper or do the tasks yourself?
It might be tempting to do simple bookkeeping tasks yourself as this enables you to save money. However, if you want to achieve your long-term goals, it will be much wiser to consider hiring a bookkeeper.
There are bookkeeping tasks that can get more complicated than you think especially if it involves tax deductions. The ATO is very particular with the figures and inaccurate details can result in incurring penalties. If you are concerned about the cost of hiring a bookkeeping professional, think about the benefits.
The benefits of hiring a bookkeeper
You may not appreciate it at first , but as your business grows, you become busy as well taking care of other aspects of your business. This results in losing track of the financial aspect of your business. A bookkeeper ensures that your financials are in good shape by doing the following:
Checks your cash position
A bookkeeper checks if you have enough cash to grow your business or invest. They provide you a summary of your expenses so you will know whether or not you have enough to spend.
Prepares and sends invoices
Preparing invoices can take a large chunk of your time. Since it is a time-consuming process, you need someone to do these tasks for you so a steady flow of cash will come into your business.
Records your transactions
A bookkeeper is also responsible for recording transactions using bookkeeping software or an Excel. The transactions include money coming in from clients and money paid to suppliers, employees and others.
Review your cash flow
It is also important to check your cash flow position to ensure that you still have enough cash for the coming weeks or months. A bookkeeper takes care of this task.
A bookkeeper takes care of reviewing payment due dates, filing documents and receipts running your payroll, reviewing your incoming payments, checking your bank statements and much more. Hiring a bookkeeper creates peace of mind to business owners by allowing you to focus on other areas of your business.