Bookkeeping is a crucial business operation whose importance can’t be stressed enough. As a small business owner, you’d be conscious enough to maintain proper financial records which I believe are hard to maintain without effective bookkeeper services.
Being a tedious and time-consuming task, bookkeeping often appears evil to businesses. However, it’s not the case when a certified Xero or Quickbooks bookkeeper takes the obligation over their shoulders. For example, they are professional enough to organise and store your day-to-day financial and accounting documents including journals, ledgers, financial statements, income tax records, and much more.
Furthermore, expert bookkeeper services help your business prevent the following pitfalls.
5 Most Common Pitfalls Bookkeeper Services Help You Get Rid Of!
As mentioned above, most businesses, especially the ones just starting up, view bookkeeping as evil due to a variety of reasons. Due to this, they end up committing serious financial blunders they should have avoided with expert bookkeeper services. Here’s how bookkeepers help your business in this scenario.
Poor and improper record-keeping
For small businesses, improper or poor receipt and record-keeping is the biggest challenge in their initial phases. For example, misplacement of purchase receipts or ignoring significant expenses are most common.
Maintaining detailed monthly records with a proper filing system is highly essential as it saves you time and money on your income taxes. Furthermore, proper bookkeeping provides you with the necessary documentation on time in the event the audit team pays a visit to your business.
Pro tip: You’d know how ATO audits businesses to prepare for the same in the future.
Incorrectly organising your small business expenses
Do you incorrectly organise your business expenses? Stop doing that!
According to the formal bookkeeping practices, correctly organising your business expenses is of utmost importance. This ensures proper measurement of your business’s profitability.
Additionally, understanding the different tax treatments of your different incomes and expense categories helps in savings and tax deductions as well.
Thus, make use of the professional bookkeeper services as soon as possible.
Not reconciling your small business bank accounts
It’s common for small business owners to neglect the need to have separate bank accounts for personal and business financial activities. However, it’s a major issue you must resolve at the earliest.
This is because the auditing team would always ask you to present your complete business financial records that are separate from your ones. Additionally, you’d understand what bank reconciliation is, why it is done monthly, and how it helps to minimize errors and identify potential issues.
Again, effective bookkeeper services help with your prompt bank statements reconciliation.
Not having automatic and cloud backups
Today, having automatic and cloud backup of your crucial financial data and other things is as important as oxygen is to breathing. This is because nowadays, businesses often come face-to-face with sudden hardware failure, viruses, and human errors that lead to lost financial records that may never be restored.
Thus, automatic and cloud backup of the same are necessary as they help avoid the after-effects of all these.
Today’s bookkeeping software such as Xero & QuickBooks comes with the feature of automatic and cloud backup to keep your records safe for eternity.
Trying to do books yourself
Most small business owners dislike doing books by themselves but still insist on doing them to control expenses. However, it’s not recommended.
Bookkeeping is a significant business operation that can both make or break your business if not done properly. By handing over its duties to professional bookkeeper services, you can relish the peace of mind of getting every possible subtle error located and corrected that might otherwise be missed.
Last but not least, being experts, they ought to be aware of the latest tax laws & changes that could affect your day-to-day financial practices if not implemented early.
Hence, these are the most common five pitfalls effective bookkeeper services helps you avoid.
To assist you in your record-keeping, we’ve got something for you. We, at Outbooks, don’t just picture bookkeeping as mere data entry practice. It’s not something anyone can appoint a junior person from staff with no information on bookkeeping to do.
When you hire bookkeepers, you long for peace of mind, which also involves taking chores like recording and payroll off your plate.
And when done correctly, the bookkeeper can stay with you for a long time and genuinely have a striking effect on your business’s success.
We take immense pride in introducing you to our certified bookkeepers who carry an abundance of experience on their shoulders and are the support pillars of infinite firms they have worked relentlessly for.
Not to forget that we are certified by XERO. In a nutshell, we are proficient in multiple-accounting software, and that’s our identity.
Contact us today to book your free trial, and you focus on the work that matters to you, and we’ll take care of the rest!
Let’s connect on +61 451320102