What does a bookkeeper do?
Bookkeepers handle the financial record keeping for businesses, making sure they’re up-to-date, accurate and compliant with government and regulatory requirements.
A good bookkeeper will be a huge asset to your business because they have the knowledge, experience and passion to manage your records accurately. They can also give you insight on business opportunities and potential financial issues that you may not have been able to see otherwise.
Key roles of a bookkeeper include: data entry, expense tracking, invoicing and receipts management, banking, payroll, BAS preparation, BAS lodgement, compliance and reporting.
1. Your bookkeeper must understand your business
The right bookkeeper will take the time to understand how your business works. This includes how you operate, who/when you bill and what your expenses are. A bookkeeper who doesn’t fully understand your business and the reimbursements you are entitled to could create costly mistakes.
2. Your bookkeeper should be a registered BAS agent
ATO requirements state that all bookkeepers providing a BAS service are required to be registered as a BAS agent. This includes stringent education, testing and experience requirements as well as a commitment to ongoing professional development.
3. Your bookkeeper should communicate clearly and regularly
It is absolutely vital for business owners to have open, honest and effective communication with their bookkeeper. You will need to chat with your bookkeeper regularly to review key financial reports. For example, the profit and loss statement, balance sheet and cashflow statement. A good bookkeeper should be able to explain accounting concepts in a manner that is simple for you to understand. That way you’ll have a clear understanding of your financial position at all times.
4. Low prices don’t mean high quality
While most small businesses are looking to hire a bookkeeper on a budget, be warned that choosing the lowest priced bookkeeper might mean you’ll pay a lot more in the long run. Make sure you choose a bookkeeper who knows what they’re doing and can make a positive difference to your business. These services will come at a cost, but your business will reap the benefits.
5. Great bookkeepers ask questions
It’s a fantastic sign if your bookkeeper asks you questions rather than guessing where transactions should be allocated. Bookkeepers should be asking relevant questions regarding cashflow, budgeting, increasing revenues, profits and developing your financial planning strategies.
Does your bookkeeper meet each of these five requirements? Have a look at our testimonials to find out why our clients stick with us for years!
Bookkeepers can help you to manage crucial, day-to-day business processes. In addition, they can assist with extras such as applying for a loan or overdraft, preparing a business plan and managing business growth (e.g. hiring staff). If you are trying to determine the best bookkeeping software for your business (e.g. MYOB, Xero, Quickbooks), your local bookkeeper has the knowledge and experience to help you make a sound decision. On top of this, bookkeepers ensure you get all the reimbursements you’re entitled to when it comes to your tax return. A top-notch bookkeeper will help you assess your profitability, provide you with bookkeeping tips along the way and develop a plan that will help you achieve your goals.
Bringing a professional on board can seem pricey for a small business owner, but their expertise could mean considerable long term benefits for your company. A financial expert can optimise the efficiency and accuracy of your financial management, granting you peace of mind and additional time to get back to running and growing your business.