You might be great at designing dresses, can write up a storm or be a skilled mechanic but when it comes to bookkeeping, leave it to the experts. The secret to a successful business is doing what you’re good at and outsourcing what you’re not. Here are five advantages of having a bookkeeping service.

 

1.Time effective

 

A bookkeeping service has the expertise and know-how to look after your accounts and let you focus on the day-to-day running of your business. Bookkeepers should be flexible and schedule meetings around your busy work schedule and be able to produce reports and figures at a moment’s notice to accommodate any last minute meetings. A bookkeeping service can also keep your accountant up to date with things such as BAS lodgement status, when they can expect to have your files for annual tax return and accounts preparation and can also chase up unpaid invoices. This allows you to manage and grow your business without having to focus on administrative tasks.

 

2.Cost-effective

 

Hiring a bookkeeping service can be more cost effective than hiring casual or part time staff to do your bookkeeping. There is no need to purchase and maintain computer systems, buy expensive accounting software and upgrades or invest in expensive training and development of staff. Office space does not need to be allocated to a staff member and there is no superannuation, leave entitlements or any other costs that a full or part time employee incurs.

 

3. Profit and Loss Made Clear

 

Bookkeeping is a vital part of a business for many reasons. Perhaps the most important is that you have to know whether your business is generating a profit and how much of a profit it is actually making. You need to know which products are making a profit, which cost too much to sell, and how your time can best be spent to bring in the highest possible profits. Doing this efficiently requires someone who has a lot of experience in keeping books, creating profit and loss statements, and keeping the numbers running correctly so that you don't run the risk of letting a few numbers mistakes destroy the entire profit margin.

 

A bookkeeper can also be consulted about the profit and loss of a company and give advice about how to improve the profit margin. An experienced bookkeeper may be able to tell the you exactly where to cut costs and how to raise profits enough to expand your home business. With better profits, it may be possible to work fewer hours and to spend more time with your family.

 

4. Reports

 

Many small business owners don't know the true financial state of their business. If you don't analyze your finances and stay on top of them, your business is sure to fail. Having access to critical financial reports is crucial, and bookkeeping services generate the reports you need as often as you want them. Most businesses require financial reports on a bi-weekly basis, but some need one weekly, and a very small business may need reports only once a month. Whatever frequency you choose, a bookkeeper will prepare the reports for you so that you can see where your business stands and prevent problems from occurring.

5. Avoid Overdraft Fees and Additional Interest Payments

 

One duty that is often delegated to bookkeeping services is bank reconciliation. Don't rely on your bank statements to give you an accurate picture of your financial bottom line. A bookkeeper will handle your accounts payable and accounts receivable and enter the information in your financial software of choice so that you know what your real balance is. You won't make the mistake of writing a check for more than you have available, which can result in an overdraft fee and additional interest on outstanding debts.

 

Hire a bookkeeping service and enjoy the benefits as early as possible in your business. You won't regret saving time and money because of it. 

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