Having a professional bookkeeper can save you money for your business. Some small and medium enterprises (SME) owners try to do their own accounts or they may employ a bookkeeper directly. This can be fine on the off chance that you are sufficiently fortunate to recruit a good bookkeeper directly.
However, unless you have an accounting background and a thorough understanding of the accounting software involved. And it can be very challenging to know what questions to ask at the interview process.
Regardless of whether you discover somebody who looks great on paper, except if you recognize what reports to request. It can take a long time to get on the off chance that they are performing or not.
Over half of business owners have had an awful encounter attempting to utilize a professional bookkeeper directly. As a rule, within the week can uncover things such as:
- Double payment of creditors invoices
- Underbilling of revenue
- Incorrect coding usually resulting in underclaiming credits
- Miscalculation of superannuation and payroll tax of employees and contractors
These mistakes can be very costly and sometimes terminal for some businesses.
Here are 7 ways a professional bookkeeper will save you money
1. Help you work “on your business, not in your business!”
I know, it’s an old chestnut from that fantastic book E-Myth and which forms the cornerstone to most business coaching strategies. It is the key to being able to grow any business and applies to bookkeeping as with any other part of your business.
If you employ a professional bookkeeper, you still have to monitor the quality of their work. And when they work, when they take holidays, and among other things. By outsourcing all of your accounting and bookkeeping functions to a professional bookkeeper, all of your account’s duties become their responsibility.
And you can focus on growing your business, with the confidence that you are receiving accurate reports on your performance and meeting all statutory obligations.
2. A professional bookkeeper gets to know your business
There are some accounting administrations that proposal to deal with your records from their office which could be based anyplace.
This includes moving source archives either electronically or genuinely to and from your office to theirs. While this can be fine for micro businesses. It can prove difficult once your business begins to grow.
Before you can provide meaningful management reports, you need to know how a business operates. And what are its key performance indicators.
The only way to achieve this effectively is to get to know the company and the people who work within the company. This can only be done by performing the bookkeeping functions at the client’s premises.
3. There’s “bookkeepers” and then there’s “bookkeepers!”
There can be a huge difference in skill level of people that call themselves bookkeepers. Just as an apprentice “chippie” and his boss with 30 years construction experience may both call themselves “builders,” people representing themselves as bookkeepers can range from data entry clerks through to qualified management accountants.
A professional bookkeeping firm should be accredited in the accounting software used by your company and they should have qualified accountants to support their bookkeepers to enable them to provide a management accounting level of service.