Professional bookkeeping services should be a necessity to any business, big or small, start up or established.
Your business records are a key part of your business so ignoring your obligation to maintain them could have major financial implications.
The skills and knowledge that a qualified bookkeeper brings to your business will provide many benefits, such as:
- Understands your obligations on recording and reporting GST (avoiding over claiming or under claiming of GST)
- Understands your payroll and superannuation obligations
- Meeting your ATO compliance obligations accurately and on time
- Frees up your time to spend on building your business
- Provides accurate and timely financial reporting so you can see how your business is performing in real time.
- Reliable financial information provides a solid foundation for making important business decisions in your business and planning for future growth
- Managing cashflow - support with debtor payment collection and managing your outgoings
- Streamline processes related to the bookkeeping with the organisation.
- Assist with measuring your business performance against budget.
- Can act as a conduit between the business and the external accountant.
What to look for when choosing a Professional Bookkeeper for your business
- Ensure the bookkeeper you choose is a registered BAS Agent with the ATO. As a BAS Agent they operate under a code of conduct and must maintain current knowledge in their field.
- Have at least 5 years experience in commercial bookkeeping.
- Be a member of a professional organisation relevant to their profession, such as the Institute of Certified Bookkeepers or the Australian Bookkeepers Network.
- Have good communication skills, a questioning mind and a real desire to see your business succeed.
What are the possible consequences of ignoring your bookkeeping completely or taking a haphazard approach at managing your financial information?
- Compliance default issues with the Australian Taxation Office
- Accumulating debt from unpaid GST and Taxation obligations
- Unpaid Superannuation
- Disgruntled employees
- ATO penalties and interest (Superannuation Guarantee Charge)
- Possible Audit
- Loss of deductibility
- Uncertainty about the financial position of your business
- Unable to make confident business decisions based on solid financial reporting
- Time lost
- The time spent sorting your paperwork could better be spent building a better business.
And this is just to name a few.
Working together with a professional bookkeeper can benefit the ongoing operation and growth of your organisation. You will have greater clarity around how your business is performing and be able to better plan the way forward. Having the people around you, with the right skills, is a key to success and bookkeeping is no exception.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.