While managing a business, the primary worry for a lot of individuals are accounts and finances. Due to this, many people decide to do the bookkeeping for their businesses. Although it may sound like a good idea initially, it can become too much once the business starts growing.
Maybe it’s about time you reach out to a professional bookkeeper who can lessen the burden on your shoulder.
Bookkeeper Vs Accountant
You may argue that you already have an accountant, so there is no need to hire a bookkeeper separately. Well, for this, you must understand the difference between the two.
A bookkeeper is responsible for keeping the records in a logical and organized manner. All the financial transactions and the incoming and outgoing payments are recorded in chronological order. A bookkeeper ensures that all the information is up to date for the accountant to use.
On the other hand, a tax accountant will advise you on your financial matters and provide services for filing your tax returns. An accountant analyses the information a bookkeeper provides. Their duties include evaluating, summarizing and interpreting the financial situation of a business or an individual.
1. Keeping Your Focus on Your Business
Since you are the founder of the business, you need to pay undivided attention to its growth. You must devote your time to strategizing, marketing, funding or other sectors that need your expertise. Since your expertise lies in business, you might not have the proper knowledge required for bookkeeping.
If you decide to undertake this demanding task, you may be juggling many things at once. Instead, handing this task over to a professional would be better. With a bookkeeper keeping records, you can focus on your business.
2. No Room for Errors in Records
Keeping correct financial records is not something everybody excels at. There is no room for errors in bookkeeping, as a minor mistake can cost you loads. It is not a simple data entry task; compliance makes this even more difficult.
This reason itself is enough to explain the importance of a bookkeeper, as you will not have to worry about the ATO penalizing you. You will be surprised to know that a lot of businesses went bankrupt due to the massive penalties they suffered because of not-so-accurate records.
3. Paying Lower Accounting Fees
If you were thinking you would ask your accountant to do bookkeeping, please reconsider that. Since tax accountants have much more knowledge and expertise than bookkeepers, they usually charge much more for the same service.
Instead of spending loads on something you can get for a much lower price, look for the right bookkeeper for your business. Here at Clear Tax Accountants, we offer high-quality bookkeeping services along with financial advice.
4. Improving The Cash Flow
Only a few people know that hiring a bookkeeper can help you significantly improve your cash flow. A professional bookkeeper lets you know about the invoices yet to be paid. You also get to know about the people who owe you money. Hence, you will have a clear idea of where your money has to go, ultimately improving the cash flow.
Hopefully, the above reasons have answered the question, “Why does a small business need a bookkeeper?”
To enjoy such good bookkeeping, contact Clear Tax Accountants, one of the best tax accountants in Melbourne.
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