There are various reasons for small businesses to choose their bookkeeping professionals. A lot of time is spent in managing books taking time away from core business, cost-prohibitive in hiring a professional experienced accountant, office space etc. If you can’t hire a full-time accountant but would like all the benefits of having one, hired bookkeeping may be the perfect solution.
The primary function of a bookkeeper is to control and manage the businesses’ financial records or books. Since the accounting or the financial records of a small business are relatively simple, costly accounting packages need not be purchased to allow the bookkeeper to perform their duties. In most cases an Excel spreadsheet will be used by bookkeeper and the spreadsheet will be used to effectively keep track of the businesses income and expenditure.
A spreadsheet used by the bookkeeper working for a small business owner will contain a detailed inventory of the company’s expenses. Such expenses will be made up of entries such as rental, wages, telephone, equipment hire, etc. A simple Excel spreadsheet can also be designed to show the invoices that have been generated, and by making use of the program’s tools, the bookkeeper is able to quickly determine which invoices have not been paid.
The hired accounts person will also keep track of the payments that need to be made to suppliers and once again, a complicated accounting package will not be required for this function. A simple spreadsheet can be generated, showing the relevant suppliers or creditors along with their invoice number, and the amount due.
When business owners hand over the financial aspects of their business to a qualified and experienced bookkeeper, they are free to focus on the core function of their business. The bookkeeper will manage creditors, debtors, etc. and the fundamental function of the hired person will be to make certain that the financial records for the venture are kept up to date. It may be a good idea to allow the appointed bookkeeper to attend small-business seminars, as these provide a wealth of information in regards to the Australian tax laws. Such seminars will give the small business bookkeeper the ability to keep up to date with any changes that have been made.
A small business owner who is under the impression that the size of their business does not warrant a bookkeeper – should reconsider. Keeping tabs on income and expenditure can turn out to be a daunting process and any company (regardless of size) requires the services of a professional, who has realised how vitally important it is to have accurate and current financial records for a business.
