Why do you need a bookkeeper?

Bookkeeper Sydney
Running a small business can be a challenging endeavour, we explain why hiring a qualified bookkeeper in Sydney can be a game-changer.
Outline

Here is our guide that explains why you may need a bookkeeper

  • Any small business can benefit from using a bookkeeper
     
  • Bookkeepers can help with BAS & Payroll

  • Bookkeepers manage daily transactions & reconcile accounts

Running a small business can be a challenging endeavour, with numerous responsibilities and tasks demanding your attention. One crucial aspect that often becomes overwhelming for business owners is managing accounting paperwork. 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. 

For any business in any sector, niche or size the only truly sustainable competitive advantages you can create are speed and time. By removing the need to worry about recording financial transactions you can create the time needed to develop and grow your business. You can work ‘on it’ rather than ‘in it.

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.

What does a bookkeeper actually do?

  • Report financial transactions
  • Reconcile bank statements
  • Manage accounts payable
  • Manage accounts receivable
  • Code expenses
  • Help with managing payroll
  • Prepare your BAS
  • Manage the chart of accounts
  • Help with financial compliance

The main purpose of using a bookkeeper service is to have an expert resource that can help manage all the financial transactions going in and out of your business. Here is a list of primary functions that a bookkeeper can provide to any small business owner:

  • Record financial transactions: Bookkeepers can record financial transactions such as sales, purchases, receipts, and payments in the accounting system. This ensures that financial records are up-to-date and accurate.
 
  • Reconcile bank statements: Bookkeepers can reconcile bank statements with the company’s financial records to ensure that they match. This helps identify any discrepancies or errors in the financial records.
 
  • Manage accounts payable and receivable: Bookkeepers can manage accounts payable by keeping track of bills and payments, ensuring bills are paid on time, and managing vendor relationships. They can also manage accounts receivable by tracking customer invoices and payments.
 
  • Prepare financial reports: Bookkeepers can prepare financial reports such as balance sheets, income statements, and cash flow statements. These reports provide insights into the financial health of the business.
 
  • Assist with budgeting: Bookkeepers can assist with creating and managing budgets. They can help the business owner understand the financial implications of business decisions and help plan for future growth.
 
  • Prepare and file tax returns: Bookkeepers can prepare and file tax returns, including BAS statements, payroll tax returns, and income tax returns.
 
  • Maintain the chart of accounts: Bookkeepers can maintain the chart of accounts, which is a list of all the accounts used by the company to record financial transactions. This ensures that financial records are organised and consistent.
 
  • Ensure compliance: Bookkeepers can ensure compliance with government regulations and accounting standards, minimising the risk of penalties and fines.

  • Payroll processing: Bookkeepers can manage a business’s payroll, including calculating employee wages and superannuation contributions, managing leave entitlements, and issuing pay slips.

  • BAS and GST compliance: Bookkeepers can ensure that a business complies with its BAS (Business Activity Statement) and GST (Goods and Services Tax) obligations, including preparing and submitting BAS statements.

  • Software setup and management: Bookkeepers can set up and manage accounting software like Xero, ensuring that it is set up correctly and providing ongoing support and training to business owners and staff.

 

Think of it in another way, even though you may be able to use online accounting software it may seem like all is in order. Although like any skilled service by using someone who has expertise in the area can uncover improvements, better ways of doing things or improve efficiency. Engaging a professional bookkeeper is no different, they have knowledge, skills and experience that keep up to date with amendments in payroll, taxation, GST, PAYG and ATO legislation changes.

It can save you time, but more importantly money & stress while having perfectly balanced books.

Just like any profession there are tiers or levels of experience that are suitable to different tasks. A bookkeeper is detail orientated around the finer day to day points related to your business. They collate and record every single financial transaction, manage cash flow within the business and provide reporting for your accountant or the ATO if needed. If they are also registered as a BAS agent, they can also fulfil BAS requirements so that all the day to day tasks related to managing your business financials are taken care of. You don’t need to hire a full time employee, you can use our services on a contract basis.

When the time comes and you want to look at your business overall then we have qualified accountants, including a Certified Practicing Accountant (CPA) on our team who can provide advice and assistance around the financial infrastructure of your business along with advice on tax management. An accountant takes a holistic view to identify areas of business improvement or even growth opportunities. 

What are the main 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. 

Can a bookkeeper do payroll management?

Yes you can choose to have our bookkeeping service provide assistance with payroll management as well as your day to day transaction record keeping.  Paying staff or managing contracted vs permanent employees can be made into a simple process. The reasons for using a bookkeeper for payroll management are pretty straight forward and include; 

 

  • Accuracy: Bookkeepers are experts in record-keeping and can help ensure that payroll calculations are accurate and compliant with tax laws.
 
  • Time savings: Managing payroll can be time-consuming, especially for small business owners who have limited time and resources. Hiring a bookkeeper can help save time, allowing business owners to focus on other important tasks.
 
  • Compliance: Payroll laws and regulations are constantly changing, and it can be challenging for business owners to keep up with them. A bookkeeper who specialises in payroll can help ensure that the business is compliant with all relevant laws and regulations.
 
  • Avoiding penalties: Incorrectly calculating payroll or failing to file payroll taxes on time can result in costly penalties. A bookkeeper can help ensure that payroll is accurate and filed on time, helping to avoid penalties.
 
  • Expert advice: Bookkeepers who specialise in payroll can provide expert advice on payroll-related matters, such as employee classification, overtime, and benefits. This can be extremely beneficial for business owners to manage their staff correctly.

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.

Can a bookkeeper prepare a BAS Statement for a business?

Yes, bookkeepers in Sydney can prepare a BAS statement (Business Activity Statement) for business owners. BAS is a form that needs to be submitted to the Australian Taxation Office (ATO) to report and pay the Goods and Services Tax (GST), Pay As You Go (PAYG) installments, and other taxes. The BAS statement is typically prepared on a monthly or quarterly basis depending on the size and nature of the business.

  • Recording financial transactions: Bookkeepers can record all financial transactions that need to be reported in the BAS statement, such as sales, purchases, and expenses.
 
  • Calculating GST and other taxes: Bookkeepers can calculate the GST and other taxes that need to be reported in the BAS statement based on the financial transactions recorded.
 
  • Filling out the BAS form: Bookkeepers can complete the BAS form with the necessary information, including the calculated taxes and the payment details.
 
  • Submitting the BAS statement: Bookkeepers can submit the BAS statement to the ATO on behalf of the business owner.

Can a bookkeeper reconcile bank statements for a business?

Yes, a bookkeeper can help your business if you can’t get the bank statements don’t reconcile correctly. In fact, reconciling bank statements is one of the primary tasks of a bookkeeper and this is how they can help a small business owner;

  1. Identify errors: Bookkeepers are trained to identify errors and discrepancies in financial records. They can review the bank statements and the company’s financial records to identify any discrepancies that need to be resolved.

  2. Reconcile accounts: A bookkeeper can reconcile the bank statements with the company’s financial records to ensure that they match. This process involves comparing the transactions in the bank statements to the transactions in the businesses’ accounting system to ensure that they are the same.

  3. Find missing transactions: If there are missing transactions or errors in the financial records, a bookkeeper can help identify them and make corrections as necessary.

  4. Provide insights: Bookkeepers can also provide insights into why the bank statements may not be reconciling correctly, such as incorrect data entry, fraud, or banking errors.

Can a bookkeeper help with setting up the bank rules in Xero accounting software?

Our bookkeeper service in Sydney can help you set up the bank rules in your Xero accounting software. Fitzpatrick & Robinson are a Xero Gold Partner in Sydney which means we can help set up this online accounting software for your business or make the necessary adjustments to an existing set up. Our team of bookkeepers help hundreds of small business owners in Sydney to use Xero’s incredible accounting software that can automate repetitive tasks like allocating particular payment types, recurring costs or other financial transactions based on very simple or complex rule sets. This can save lots of time coding income and expenditure for any small business owner.

  1. Identify errors: Bookkeepers are trained to identify errors and discrepancies in financial records. They can review the bank statements and the company’s financial records to identify any discrepancies that need to be resolved.

  2. Reconcile accounts: A bookkeeper can reconcile the bank statements with the company’s financial records to ensure that they match. This process involves comparing the transactions in the bank statements to the transactions in the businesses’ accounting system to ensure that they are the same.

  3. Find missing transactions: If there are missing transactions or errors in the financial records, a bookkeeper can help identify them and make corrections as necessary.

  4. Provide insights: Bookkeepers can also provide insights into why the bank statements may not be reconciling correctly, such as incorrect data entry, fraud, or banking errors.

Can a bookkeeper help with setting up recurring invoices in Xero accounting software?

Our bookkeeper service in Sydney can help you set up recurring invoices in your Xero accounting software. Fitzpatrick & Robinson are a Xero Gold Partner in Sydney which means we can help set up this online accounting software for your business or make the necessary adjustments to an existing set up. 

Our team of bookkeepers help hundreds of small business owners in Sydney to use Xero’s incredible accounting software that can be used to send out regular daily, weekly, monthly or quarterly invoices that are recurring based on any type of date formula you require. Xero even enables you to customise the invoice template that is used as well as the wording in the email. Xero will issue the recurring invoices as well as send reminders & track when payments have been made. This saves you time and money.

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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