You arguably juggle dozens of responsibilities most especially if you are a small business owner. Undoubtedly, one of the last things that will cross your mind is bookkeeping. It would be easy for you to fall into a false sense of security about your accounting practices since you don’t have those massive lists of daily income and expenses that large businesses do.
Also, it probably didn’t cross your mind to hire the services of the Best Xero Bookkeeper Adelaide most especially if you know to yourself that you don’t need one. If your business is still fresh, no doubt, you can’t afford to hire an entire team of people you may or might not need. However, you need to know and understand why businesses need to have a professional bookkeeper.
The first thing that you must realise is that bookkeeper is not the same thing as a traditional accountant as numerous responsibilities fall on their shoulder which includes:
Keeping tabs on the general ledger which tracks both the income and expenses across various areas of the operation is its significant responsibility. They are also the people in charge in following up some customers who are already late in payment and also create invoices and managing the billing process.
Moreover, bookkeepers also significantly help in keeping certain category transactions like applicable customer discounts or labour expenses updated. It is imperative that you have a consistent payroll system if you are paying anyone for any work they are doing for your business or else they won’t get paid correctly. That’s when a bookkeeper enters the picture, as they can also handle the payroll of your employees.
Both small and large businesses need to have someone at their disposal that is capable of tracking all the financial transactions for an apparent reason which is to monitor the money coming in and out. Without a general ledger, you will never be aware of your profitability; without a consistent invoice process, inevitably, your cash flow will dramatically suffer, and lastly, your employees will quit if you don’t have a payroll. At least at the early age of your firm’s growth, you should be able to handle most of these responsibilities yourself. However, you shouldn’t ignore the benefits of hiring a bookkeeper most notably for this reason:
One of the critical contributory factors to the business’ cash flow is invoicing. If you consistently submit your invoices, in a standard process, on time and in a convenient format, you will get more on-time payments. It would be easy for your revenue stream to collapse without a standard process. Plus, if one of your customers misses a payment and you fail to do a follow-up, you may end up with a cash shortage which is terrible for any business. Therefore, it is only reasonable that you hire the Best Xero Bookkeeper Adelaide at least part-time to help you regain control if you notice problems with your invoicing system.