5 Signs That Your Business needs a Bookkeeper
A common error that occurs when running a business is that many business owners do not invest in a bookkeeper until it is too late. This can become most costly that it would have been if they had invested from the beginning, allowing the experts to grow with their business. Start-up businesses may seem simple to keep on top of when it comes to bookkeeping, but bad habits form quickly and are hard to break. If you can relate to just one of the following signs; your business is in need of a bookkeeper. Pronto!
1) You’re behind with your lodgements to the ATO
Overdue lodgements with the ATO can quickly accumulate and wreak havoc on a business. Not only will the ATO impose late lodgement penalties, but as soon as your lodgements are up to date you will be left with a hefty bill to pay which will also be incurring General Interest Charges. Falling behind with your lodgement obligations with the ATO can also have a negative impact on your borrowing abilities with Financial Institutions as well as with your cash flow.
2) Your businesses account keeping isn’t in a Cloud Based Bookkeeping System
It’s 2021! Gone are the days of pen and paper and ledger notebooks. If your accounts still aren’t being prepared in a live cloud based bookkeeping system, you’re behind the times. It’s just that simple.
3) You have overdue Debtors and Creditors
Not being able to meet your payment due dates as and when they fall due is a very bad sign and is usually mostly cause by poor cash flow management and/or bad Debtors. Are you aware of who still owes you money, how much, and when their accounts were due? If you answered no, you seriously need to give us a call. Leave the hard yards to us!
4) Your businesses paperwork is a mess
Filing systems are everything, whether they are electronic or physical. If point number 2 didn’t hit you in the feels, maybe this one will. Are you uploading and attaching your electronic documentation to your bank transactions, accounts payable and accounts receivable in your cloud based bookkeeping system? You should be. Not only is this an awesome way to store documents all in one place, and accessible from any device, but it reduces the number of queries from your Tax Agent at tax time. Everything is right there!
5) You are constantly misinterpreting reports and your financial position
Do you actually know the difference between and Profit and Loss Statement and a Balance Sheet? Do you understand what the Balance Sheet is showing you? Are you allocating transactions correctly so they are being reflected in the correct reports? If you cannot confidently answer any of these questions with a solid “YES!”, chances are the answer you are looking for is a big fat “NO!”. Bookkeepers are experts at knowing what transactions need to be reported where, which types of payments are to be posted to an expense vs. liability and what is an allowable deduction and what is not. We have spent., and continue to spend, years becoming educated, qualified and insured so that your business can get it right.
There are many more signs that would indicate that your business would benefit from hiring a bookkeeper, but these are the most common that stand out.
If these points resonate with you, give us a call. We’re your perfectionist in bookkeeping. Let us help your business get it Exact!
