For small business owners, hiring a bookkeeper is already considered an unnecessary expense because of believing that a bookkeeping task can be done without the help of a professional. A bookkeeper is known for taking care of necessary paperwork. Although not hiring a bookkeeper can save you money, not doing the task right can result in an expensive mistake. Financial report needs to be done accurately because it is where business owners check the performance of a business.
You have difficulties growing your business: Growing your business is definitely one of the goals you wish to accomplish. A bookkeeper is responsible for recommending the steps that a business owner needs to take so business growth can be achieved. If a business owner does not have a bookkeeper and decides to grow the business, he may eventually suffer due to financial problems that he will face. A bookkeeper advises which direction a business owner should take. The financial report that they prepare will serve as an accountant’s reference for giving advice or recommendations.
You have no access to essential information relevant to your business: A bookkeeper provides valuable information to a business owner that will help them gain a deeper understanding of tax code. Due to the fact that the tax code is changing, a business owner needs an update of the changes.
You will have trouble tracking your personal expenses: Running a business can be a daunting task let alone monitoring your business expenses. When you are juggling multiple jobs at the same time, it seems difficult for you to determine where you are spending your money. A bookkeeper will advise you to have a separate business and personal accounts. This way, you will prevent mixing the two as it can trigger untimely audit from the ATO. When it comes to ATO audits, the burden of proof will definitely be on you because you need to prove that the expenses in question are business-related.
You waste your time and money: A bookkeeper puts things in proper perspective by helping you focus on more valuable aspects of your business while they keep your business on its feet. Time is money for business owners and this is why carrying out tasks efficiently is important. A bookkeeper that reminds you of your payment deadlines can help you avoid penalties and fines.
If you are still vacillating between hiring a bookkeeper and setting the idea aside, keep in mind that your business can be in chaos because you do not have a bookkeeper professional to prepare your financial reports or remind you of tax time.
Peter Broberg is a bookkeeping professional with over 20 years experience in the finance sector. With more than 2 decades of experience, Peter provides payroll and bookkeeping services on a professional level. His services cater to small and medium enterprises in Cannington, Kalamunda.