Many small and medium businesses (SMEs) employ an onsite bookkeeper with the misconception that they are getting an employee with experience and commitment to the business. Often this is the case but only if they are lucky enough to find a capable bookkeeper with a thorough knowledge of accounting principles and accounting software.
So many clients that come to us bring with them various horror stories. Within the first week of our review we often notice the double payment of creditors, the under-billing of revenue, incorrect GST coding typically resulting in under-claiming GST and the miscalculation of super and PAYG tax of employees and contractors. Seldom is the balance sheet correct unfortunately. Sometimes it can take months for a business owner to realize that the books haven’t been done correctly, and the adjustments that will have to be done to reconcile your records are time consuming and costly.
The problem is that employed bookkeepers don’t have to comply with any ATO criteria. This means that they can be unqualified. A professional bookkeeper or BAS agent on the other hand has to meet a number of essential requirements and is familiar with ATO rulings, changing tax laws and business compliance and will save you both time and money.
There are countless ways for a professional bookkeeper to help you save money the six most important points for the growth and maintenance of your business are as follows:
- Help you work ‘on’ your business, not ‘in’ your business!
By outsourcing to a professional bookkeeper, whose performance is key to retaining the account, you are better able to focus on the growth of your business. Though you can still monitor the progress of your accounts, the day to day responsibility is removed, and you can continue to build your company confidently knowing you are receiving accurate reports, and your records are meeting statutory obligations.
- There a bookkeepers, and then there are “bookkeepers!’
The experience and skill level between one bookkeeper and another can be worlds apart.
A data entry clerk is not capable of providing the same service as a qualified BAS agent. As such one must consider approaching a professional bookkeeping firm, whose experience, qualifications and familiarity with the accredited accounting software used by your company will ensure a continued quality of service.
- Opportunity to Implement Efficiencies:
Employing a professional bookkeeper often means that inefficient practices can be streamlined thus saving you time and money.
- Flexibility and Backup
Who covers for your employed bookkeeper when they take time off? Outsourcing to a qualified bookkeeping service means there is always someone on hand.
- Save Employment Costs
Many often choose to employ a bookkeeper directly because of the initial costs involved. However; add another 45% to their base salary and this will give you an indication of the hidden cost of employing a bookkeeper. There’s superannuation, sick leave, annual leave, public holidays, worker’s compensation insurance, recruitment costs and PAYG withholding tax.
- Stricter ATO Regulation for BAS Preparers
Your employed bookkeeper will be able to prepare and lodge your BAS, however without adequate training and ATO compliance your accountant will have to review any BAS work, adjusting where necessary. You will then have to pay the accountant’s rate on top of your bookkeeping fee. Using a professional accredited bookkeeping firm for all data entry and records removes the need for review, and you will save on accountant fees.
I hope this has helped you understand how a professional bookkeeper can save you money. We have a hands-on professional bookkeeping team which is will assist you with all you bookkeeping needs. For further information, why not give us a quick call on 0403 496 705 We’re more than happy to help!