Did you ever think that outsourcing bookkeeping tasks are only ideal for large businesses?
You are not alone. In fact, there are many misconceptions about hiring a qualified bookkeeper. One is knowing the ins and outs of accounting software is enough to manage books.
In this article, we debunk 6 common mindsets on hiring a bookkeeper. These will help you make more informed decisions on better business management.
Bookkeeping is as simple as a data entry
Accurate information in data entry provides a solid foundation for bookkeeping. All entries in the accounting software need to be reconciled to ensure accuracy in business transactions, financial reports and payroll.
While bookkeeping role varies for business types, the typical routine for bookkeepers includes:
- Bank reconciliation
- Managing payables and receivables
- Preparing financial reports
- Recording of financial transactions
- Cash flow management
Setting up accounting or bookkeeping software solves everything
Setting up the software is one thing and entering data accurately is another. A single error you commit in the data entry can:
- Affect the whole financial situation of the company
- Distort the estimated operating profit margin
- Result in inflated earnings or tax overpayments
When these things happen, your accountant can mistake tracking cash flow and cause financial damage to your business.
Hiring Bookkeeper and BAS Agent is expensive
Bookkeeping errors, as mentioned previously, can lead to spending more money on amending mistakes or losing with tax.
This is one of the reasons why a qualified bookkeeper and BAS agent is an asset to your business. They eliminate the risk of the hidden costs of doing bookkeeping by yourself. Moreover, a bookkeeper can be your advisor when making business decisions.
You only need bookkeepers around tax season
As a business owner, you need to pay attention to your financial situation throughout the year. It helps you file taxes easier, mitigate risks, and take advantage of growth opportunities.
A qualified bookkeeper helps you understand your financial position aside from providing accurate reports. It is also advantageous to have them manage your books all year for tax preparation and work alongside your accountant.
So, when is the best time to hire a qualified bookkeeper? Here is a resource to guide you.
Lack of data security
Data security threats do not only come from hackers and natural disasters. They may also occur from human errors.
Bookkeepers have practices to keep confidential details secured from online threats. In fact, this is on their priority list when providing their services. Make sure you read how the bookkeeper maintains data security when entering into an agreement with them.
Outsourcing bookkeeping is only for big businesses
There are small businesses with complex bookkeeping requirements. Especially if they are growing exponentially. This consumes plenty of time if business owners are to complete them regularly.
Outsourcing bookkeeping is not exclusive to big businesses. In fact, there are benefits it offers regardless of your business size.
How we can help you and your business?
Call us today for a free discussion with Fabiana Silva, a registered Bookkeeper and BAS agent.
Read more about Fabiana Silva and Focus Bookkeeping.