20 ways a bookkeeper can help a business owner

25 ways a bookkeeper can help a business owner in Sydney
We explain 20 ways a bookkeeper can help you run your business everyday. Using a bookkeeper can save you money, help cashflow and reduce the taxes you pay
Outline

The practical ways a bookkeeper in Sydney can help your business everyday

  • Business owners can benefit from using a bookkeeper
     
  • Save money on hiring staff by using a professional bookkeeper

  • Bookkeepers manage lots of financial tasks

Running any type of business in Sydney can be a complex and time consuming task. While it has its financial rewards and you get satisfaction from seeing it grow, there are always areas that are a real pain in the you know what. A bookkeeper can help manage some of the financial aspects of your business that take up a lot of time, need high attention to detail & can be a financial risk if not done correctly.

We often get asked by business owners if they should use a bookkeeper, what can they do and what daily tasks could be given to them to complete. So here is our run down that explains twenty five things a bookkeeper could do for any business. The complexity of financial records, tax regulations, and compliance requirements can easily consume valuable time and energy that could be better spent on growing your business. In such situations, hiring a qualified bookkeeper in Sydney can be a game-changer. 

We have bookkeepers available in Sydney that will prepare all of your financial information so that it is available at your fingertips anytime you need it. This includes access to your financials by using the latest online accounting software such as Xero Accounting that you can view on your computer, laptop, mobile phone or tablet device. If you then need it, you can then use one of our accountants for even further financial analysis or even our business advisory consultation services to grow beyond your existing revenues.

20 things a bookkeeper can do for a business

  1. Day to day management of accounts – A bookkeeper can stay on top of your business’ accounts daily for all transactions. By keeping track of every sale or purchase and using software to do it all, it’s much easier for them to keep an eye on your cash flow.

  2. Save you time on data entry.  Your bookkeeper will make sure to stay on top of your business’ accounts daily for all types of transactions and data entry to keep your accounts up to date. In some cases this could be done manually with paper based records. Although our accounting & bookkeeping company can also help if you use accounting software like Xero. By doing so, it’ll be easier to keep an eye on your cash flow and it will save a lot of data entry time.

  3. Maintain current & accurate records. A bookkeeper will make sure that all of your business records are up-to-date. Plus, it’ll be their job to flag up any inconsistencies between the books and your business accounts, making sure you resolve problems quickly and that all your financial information is ready to be shared if the ATO was to ask for it during an audit.

     

  4. Keep your business in check with tax laws – Tax can be a sensitive area. One mistake and a dreaded letter from the ATO can soon be on its way. That’s where bookkeepers come in, as they can help make sure your business stays aligned with the relevant laws. Remember, they’re here to help and not cause more problems. If all your records are in order then it is relatively simple to answer ATO questions which your bookkeeper can help with.

  5.  Get you prepared for tax returns. Knowing how the current tax laws work, changes to regulations or entitlements can be hard for a business owner. So getting the books done can help you meet any tax return submission deadlines as well as submit information that is accurate, timely and minimises your tax payments.  To keep the taxman happy and stop you from paying any additional fines, a bookkeeper will make sure your records are accurate, so you’re always prepared for tax.

  6. Manage bank feeds. On a simple level, bookkeepers can manage transactions brought in through software, such as Xero. Bank feeds, that link the software with your business bank account, allow you to see each transaction in real-time.

  7.  Handle accounts payable. It’s usually bookkeepers who make payments on behalf of your business. This can include anything from payment of supplier invoices, petty cash and expenses. Managing this area can help with cashflow and avoiding late payment notices.

  8. Invoicing and accounts receivable.  Another big responsibility of bookkeepers is that they prepare invoices and send them to your clients so you can receive payment on time. Managing the accounts receivable ledger is also likely to be done by a bookkeeper – as well as chasing up late payments so your records are always accurate.

  9. Prepare financial statements. A bookkeeper will also be responsible for preparing significant financial statements for a business. These can include a profit and loss statement, balance sheet and cash flow statements. These financial reports show a businesse’s bottom line and operating expenses, the balance of assets and liabilities as well as the cash flowing in and out of the business.

  10. Process Payroll. The services bookkeepers offer can vary depending on how they are engaged or contracted. Some can fulfil payroll and other HR functions for businesses. This can include assisting businesses with the processing of pay runs and tax payments to employees or even employee contracts.

  11.  Foreign currency transactions. Bookkeepers also make sure to maintain accurate foreign currency accounts, utilising current exchange rates. This can be made much easier with compatible digital bookkeeping apps like Xero that can instantly analyse exchange rates without wasting much time.

  12.  Perform  stocktake. For a business that sells products, bookkeepers might also produce inventory reports by counting stock items. If there are any discrepancies, they report back to the business to make sure you can address problems quickly. It’s most commonly carried out at the end of a business’ financial year end with the figures featuring in reports such as profit and loss statements.

  13. Manage cash flow.  One of the most essential tasks a bookkeeper will do for a small business is making sure they don’t run out of day-to-day money. They can do this by keeping an eye on the balance of revenues to expenses, along with offering more advice if the business needs more available cash to operate. Your bookkeeper will be responsible for tracking the balance of revenues to expenses; he may also provide you with advice if your company needs more available cash to run.

  14. Preparing the books for an accountant. It’s a bookkeeper’s job to make sure that the accounts are valid and up-to-date when the accountant needs them. This lets an accountant use their knowledge to make business recommendations and complete any tax returns.

  15. Help with business strategy. Some bookkeepers may get involved with simple business strategy decisions by creating reports or information to help a business owner make decisions. While most of the daily transaction keeping won’t highlight much information their ability to create financial reports to show trends or important information may help make changes to how a business operators.

  16. Reduce your accounting costs. Are you using an accountant to manage your daily transactions and run your monthly payroll? If so, you could save a lot of money by using a bookkeeper do this work instead, while then engaging one of our accountants for more strategic tasks.

  17. Get quick access to vital figures Having an accountant manage your monthly business reconciliation and reporting is important. But what if you need some financial information part-way through the month? Bookkeepers can give you the information you need quickly, without you having to wait for your accountant to respond.

  18. Keep control of your financial data. Few businesses can afford to hire their own accountant, so most accountants work on a part-time basis for their clients. If they use quality online accounting software to manage your financials, it makes collaboration much easier. Quality software means that your bookkeeper can work on the same set of data as the accountant. They can both work together to give you the best outcome and help your business grow and we often help businesses use Xero to implement this type of financial management.

  19. Financial statement preparation. Your bookkeeper will also be responsible for preparing important financial statements for your business, such as profit and loss statements, balance sheets and cash flow statements.

  20. Online accounting software management.  Having accounting software is great but you still need to know how to use it properly. A bookkeeper can help do an audit on an existing set up, create a new one & also make changes to a system so that it is operating correctly and being used to produce the right information.

What are the benefits of using a bookkeeper if you are a business owner?

As a business owner a business focussed bookkeeper will cost you money, but it will then give you greater returns in relation to time, financial accuracy and compliance. These crucial business elements will outweigh the raw costs.

 

Time and Productivity:

Managing accounting paperwork can be time-consuming, especially if you lack experience or knowledge in this area. By hiring a small business bookkeeper, you can delegate these tasks to a professional, allowing you to focus on core business activities that require your expertise. A bookkeeper will handle financial transactions, record keeping, bank reconciliations, and more, freeing up your time to concentrate on growing your business. Their specialised skills and efficiency will significantly enhance productivity and allow you to make strategic decisions based on accurate and up-to-date financial information.

 

 

Financial Accuracy and Compliance:
Maintaining accurate financial records and ensuring compliance with tax laws and regulations is essential for every small business. A qualified bookkeeper possesses the necessary expertise to handle these responsibilities efficiently. They stay updated with the latest tax laws, ensuring your business remains compliant and avoids penalties or legal issues. With their meticulous attention to detail, bookkeepers can accurately record financial transactions, prepare financial statements, and generate timely reports, enabling you to make informed business decisions.

 

 

Cost-Effectiveness:
Outsourcing bookkeeper services can be a cost-effective solution for small businesses. Hiring a full-time, in-house bookkeeper often entails additional expenses such as salaries, benefits, training, and office space. On the other hand, by hiring a bookkeeper for small business needs, you can avail their services on an as-needed basis, reducing overhead costs. Moreover, qualified bookkeepers possess the experience and knowledge to identify potential tax deductions, cost-saving opportunities, and financial inefficiencies, ultimately helping you save money in the long run.

 

 

Financial Analysis and Reporting:
Bookkeepers do more than just recording financial transactions. They provide valuable financial analysis and reporting that can aid in decision-making. By closely monitoring your business’s financial health, they can identify trends, patterns, and areas for improvement. Through accurate financial statements and reports, a bookkeeper can help you understand your business’s profitability, cash flow, and areas where expenses can be optimised. This financial insight is invaluable for making strategic business decisions and achieving long-term success.

 

 

Business Growth and Scalability:
As your small business expands, so does the complexity of your financial management. A bookkeeper specialised in small business accounting services can adapt to your growing needs, ensuring your financial processes keep pace with your business’s growth. They can establish efficient bookkeeping systems, implement scalable processes, and provide guidance on financial planning and budgeting. With an experienced bookkeeper by your side, you can focus on scaling your business while having peace of mind that your financial records are accurate, organised, and optimised for growth.

 

 

Confidentiality and Security:
Business financial information is sensitive and must be handled with utmost confidentiality and security. When you hire a reliable bookkeeper, you can trust that your financial data will be kept secure and private. Reputable bookkeepers adhere to strict ethical standards and maintain robust data protection protocols to safeguard your information. By outsourcing your bookkeeping needs, you can avoid the risks associated with internal data breaches and ensure the confidentiality of your business’s financial records.

 

 

Expertise and Experience:
Qualified bookkeepers possess specialised knowledge in accounting principles, financial software, and industry best practices. Their expertise allows them to navigate complex financial matters efficiently, providing accurate and reliable results. By hiring an experienced bookkeeper, you gain access to their extensive knowledge and skills, enabling you to leverage their insights and recommendations for optimising your business’s financial performance. Their expertise can prove invaluable when facing audits, tax inspections, or financial challenges.

 

Hiring a qualified bookkeeper for your small business offers numerous benefits that can alleviate the burden of managing accounting paperwork. Their expertise, experience, and specialised services provide accurate financial records, ensure compliance, and offer valuable financial insights. 

Should you use a bookkeeper or an accountant?

As a business owner, you may be wondering whether you need a bookkeeper, an accountant, or both to manage your financial records. While the roles of bookkeepers and accountants can overlap, they perform different functions and have different skill sets. In most cases, a business owner will benefit from having both a bookkeeper and an accountant.

 

Bookkeeper
A bookkeeper is responsible for recording and maintaining a business’s financial records. This includes tasks such as recording transactions, reconciling bank statements, managing accounts payable and receivable, and generating financial reports. Bookkeepers are typically responsible for the day-to-day financial operations of a business.

 

Accountant
An accountant, on the other hand, provides higher-level financial analysis and advice. This includes tasks such as preparing tax returns, conducting audits, and providing financial planning and forecasting. Accountants are responsible for ensuring that a business’s financial records are accurate and compliant with relevant laws and regulations.

 

 

So, why might a business owner need both a bookkeeper and an accountant? Here are a few reasons:

  1. Different skill sets: Bookkeepers and accountants have different skill sets and perform different functions. While a bookkeeper is responsible for maintaining a business’s financial records, an accountant can provide strategic financial advice and guidance.

  2. Better financial management: By working together, a bookkeeper and an accountant can provide a business owner with a comprehensive view of their financial situation. This can help a business owner to make more informed decisions and better manage their finances.

  3. Improved compliance: Both bookkeepers and accountants are responsible for ensuring that a business’s financial records are accurate and compliant with relevant laws and regulations. By having both professionals on board, a business owner can be more confident in their financial compliance.

  4. Time savings: By delegating financial management tasks to a bookkeeper and accountant, a business owner can save time and focus on other aspects of their business.

 

When considering whether to hire a bookkeeper, an accountant, or both, a business owner should consider their specific needs and circumstances. Factors to consider may include the size and complexity of the business, the level of financial expertise required, and the budget available for professional services.

In general, if a business owner has a relatively simple financial situation, they may be able to manage their own financial records or hire a bookkeeper to handle day-to-day financial operations. However, as a business grows and becomes more complex, it may become necessary to hire an accountant to provide higher-level financial advice and analysis.

Ultimately, the decision to hire a bookkeeper, an accountant, or both should be based on a business owner’s specific needs and circumstances. By working with a bookkeeper and accountant, a business owner can better manage their finances, ensure compliance, and make more informed decisions about their business.

Rick & Bryn
Rick & Bryn

Experienced accountants who love helping other business owners in Sydney to maximise profits, improve cash flow & grow their business.

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At Fitzpatrick and Robinson our purpose and reason for being is to help business owners make more money, pay less tax while growing in a sustainable & methodical way. We have a team of bookkeepers, accountants, tax accountants for business, a CPA, Xero accountant specialists while also providing business advisory services.

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