Bookkeeping can be seen as an overhead, but no business can function without it. There are unavoidable duties that need to be completed every week (now with Payday filing), month, year set out by the Inland Revenue, which if you are not on top of your bookkeeping could result in hefty fines.
Nowadays with the use of cloud packages like Xero and MYOB many SME business owners attempt to go it alone and attempt to do their own bookkeeping. So, why should you hire a professional bookkeeper to work for your business?
WE DO BOOKS WHILE YOU DO BUSINESS
Someone once told me that there are three aspects to your business – The trade (what you are good at and why you got into business in the first place), marketing and finance. To be a successful business owner you should never attempt to do all three. If you are concentrating on marketing, you are not doing the trade (making money!) and likewise with finance, you are not doing the trade (making money!!!). The reason that you are reading this is most probably due to the fact that you’re a small business owner, and you’re potentially the only one working in your business or you might have one or two staff who work directly in the business with you (for example, a tradie with maybe a couple of part-time staff). Keeping your small business books up to date is just another task that has you working IN your business, instead of ON your business. It’s a simple trade-off, any time you spend raising invoices, entering bills or reconciling transactions is time you could have potentially been working on a money-making task in your business.
As mentioned previously to manage and do all three arms of your business exceptionally well you would have to be a genius and have 40 hours a day. So, if you find that you are continuously stuck on how to enter a finance item, it’s probably time you hire a bookkeeper. This will save you both hours of frustration and more time to make that all-important money from doing what you are good at.
YOUR BUSINESS IS GROWING
When you first start out in business you are still building the business and at first the transactions that you had to process on a monthly basis were minimal and relatively straightforward. Your business needs would have changed from what they were on day 1 to what they are today, and you can no longer do your books in an hour and your services are needed elsewhere for more hours in the week. By bringing on board a professional bookkeeper who is associated with the New Zealand Bookkeepers Association you know you are not only working with someone who takes their responsibility seriously, you are also tapping into a wealth of knowledge that will ensure even the most complex transaction type is being coded and allocated correctly.
BETTER CASH MANAGEMENT
Cash is king! One of the simplest ways to ensure that this is under control is by implementing an account receivable process that ensures you are invoicing on time. As a small business owner, it’s easy to get caught up in everything else you have going on and forget to invoice a client. For example, if you invoice even one month later than the job was completed, you delay the inevitable cash coming into your business, but the longer you leave it to invoice a client the higher the chances of that invoice not ever being paid become. Bringing on board a bookkeeper who can help you develop an accounts receivable process, will mean that clients are invoiced as soon as tasks are completed (or within whatever timeframe you have agreed with your bookkeeper) and also that when clients do not pay their invoices, your bookkeeper is following up to find out when payment will be made.
TWO EYES ARE BETTER THAN ONE
Nobody knows your business better than you do. However, sometimes it is always better to have an extra set of professional eyes cast a look at your financial standing to give you another opinion. By bringing a bookkeeper into your team, you know that you have someone regularly reviewing your transactions.
Two things are certain in life, death and taxes. I’ll leave the subject of death to the morticians, but I’m sure when it comes to taxes you don’t want to be paying Inland Revenue any more than you absolutely must. You want to ensure that every time a GST or PAYE deadline rolls around, you’re paying on time and therefore paying any penalties. One of the benefits of working with a bookkeeper is that they pretty much set their internal clocks to tax due dates – they are working with other people who all have the same deadlines as you, and it would be almost impossible for them to miss the deadline to file and pay.
I’m sure there are better things that you would prefer doing than sitting up all hours in the evening doing your accounts. With one less task to worry about, you will not only gain the time you would have been spending on your bookkeeping, you’ll also gain the brain power you would have used thinking about needing to do your bookkeeping and developing your trade (making money!!!).
IF YOU’D LIKE TO FIND OUT MORE ABOUT HIRING THE BOOKKEEPING PARTNERS AS YOUR FINANCE PARTNER, GET IN TOUCH TO ORGANISE A 30-MINUTE, NO OBLIGATION DISCUSSION ABOUT HOW WE CAN HELP. [email protected]