Record keeping: What you should keep, How to keep and for How long to keep records?

Record keeping: What you should keep, How to keep and for How long to keep records?

Recordkeeping is quite a complex as well as a tedious practice. Though, it is an imperative part of every small or large business. You need to invest time and resources in record keeping. When you don’t handle the bookkeeping precisely, it can lead to multiple errors, such as – risk mitigation, future planning obstacles, and fines. 

Record keeping is beneficial for your firm because: 

  1. It helps the company to monitor its development, so it becomes ready to settle on excellent decisions.
  2. Allow the business to meet its compliance deadlines. 
  3. Ensuring better cash flow management. 
  4. Enable them to show their monetary situation to banks or different loan specialists.

What business records you must keep? 

As a bookkeeper, it is your duty to keep records of your company. The types of transaction record you store relies upon the tax responsibilities of your firm and the structure of your firm, whether it is Sole Trading, Partnership, Trust or a company.

As per the guidelines of the Australian Taxation Office: 

  1. The records of firms can never be changed and have to be stored in a manner that restrains the data from getting altered or the record maligned. 
  2. The firms are obliged to save most records for a 5 year, beginning from when you arranged or acquired the records, or finished the transactions. 
  3. Firms must show the ATO their records whenever they request them. 
  4. The records have to be in English or ready to be effectively changed over to English.

How can a business keep records? 

The ATO always advises the business to store and prepare their record in electronic form. Because of the continuous trends emerging and new policies regarding taxes, keeping records electronically makes processes less complex for businesses. Also, using electronic tools for bookkeeping purposes can save time and money. 

When utilising accounting software for bookkeeping, the ATO doesn’t ask for paper copies unless a specific principle or regulation demands one. 

The ATO also keeps all the copies in its highly-secured and encrypted storage systems. These electronic copies of records are verified and true.

The businesses must make sure that they record everything in a safe place and conduct a timely backup. For these purposes, business owners can leverage cloud-accounting technology. With cloud storage, your employees can access the data anytime and from anywhere. 

For how long, you must keep records? 

As per the ATO, a business must keep records for at least 5 years. Various times you should hold the transaction records for more time because of multiple reasons, like – if your business had a capital gains event. 

You know ATO also offers an app named “myDeductions”, that makes the recording of income and expense transactions safely in one place. You can also use different accounting software like – XERO and QuickBooks etc. 

How Outbooks can help? 

Businesses have to shift towards a more advanced record-keeping approach in order to keep up with emerging trends and government compliance. The Australian Taxation Office frequently introduces different policies to support small or medium-sized businesses. 

When you hand over your accounting and bookkeeping work such as – payroll management, tax filing and boring data entry, you can get more time to focus on important client satisfactory tasks. Our expert team will complete all your bookkeeping tasks on-time with accuracy and provide you with the best results. 

Have some doubts? Reach out to us at

Contact number: +61 861182913 &

Email: [email protected]

What are the benefits of lodging transaction records on time?

What are the benefits of lodging transaction records on time?

When you have a proper framework of record-keeping and lodging transaction records on time, it provides few advantages like improving productivity, better risk detectability, and guaranteeing consistency. A record-keeping system permits businesses to ensure their staff has total admittance to exact data in a convenient and financially savvy way.

Financial reports detail a business’ cash flow management and its monetary wellbeing at a given time. In this way, if you want the data to be helpful, it needs to arrive at the client on schedule. Clients of bookkeeping data need their financial reports as soon as possible to guarantee that their monetary choices depend on refreshed and exact data. 

Just picture the issues of late data presented to the clients were good financial sponsors or the government that required it immediately. Obviously, they both won’t want to see your month-old financial statements to understand the value of your firm. 

Also, during the covid time, the Australian government gave many grants to numerous sectors of the economy. Various firms could’ve taken advantage of this opportunity but just because they did not lodge by the due date, they couldn’t cherish the opportunity. 

The Australian Taxation Office has the rights and authority to put an FTL (failure to lodge on time penalty). 

Let’s take a look at some benefits of lodging record-keeping on time in Australia. 

Better cash flow management 

The primary justification to lodge transactions in time is to guarantee you have a good look at your daily cash flow. No one at any point needs undesirable expenses and this incorporates your clients too. While paying fixed monthlies or one time instalments, your record-keeping must never be more than what you anticipate. With correct bookkeeping, you guarantee transactions are right and don’t bring any issues. 

Government Compliance 

The ATO is quite strict about its compliance requirements. You have to be very careful while lodging your tax returns and other things. When you record every entry daily, weekly or monthly accurately and file tax returns before the deadline and strictly adhere to the government rules or regulations, you will be able to run your business smoothly. 

Save your expenses

Recording transactions on time can help you to streamline your business workflow and enhance your ROI massively. You should record each transaction and make sure the invoice has been generated for every transaction with the correct amount. Payment of clients must be recorded precisely to avoid any errors and wrong forecasting. 

Excellent financial decisions 

As a bookkeeper, you must provide accurate records of your business to the decision-makers. It helps them in making better choices for the future of business and helps them remain competitive in the market. Also, potential investors, shareholders and financial institutions rely on these records so when you don’t give them the right data on time, how can you expect them to make an investment in your business? 

How Outbooks can help? 

The significance of recording every transaction must not be belittled by a business. In the past few years, more and more accounting firms have started giving their tedious tasks to outsourced bookkeeping agencies. The team of Outbooks is glad to give guidance with precise and proficient bookkeeping services for all accounting organizations. 

Call us today at +61 861182913 or fill in our form to learn more about outsourcing accounting services. 

How bookkeeping outsourcing works?

How bookkeeping outsourcing works?

When growing your accounting practice, accurate financial records cannot be understated. Proper financial records give a good impact on businesses, otherwise, the business may collapse.
Many firms hire in-house accountants to maintain proper financial records and simultaneously pursue their company goals. But employing in-house accountants cannot be the best answer to the problem. If you are looking for the best accounting services consider outsourcing to an experienced and reputable accounting company.

Outsourced bookkeeping services can help in saving money. As in house bookkeeping service could be expensive for your practice. You can save on the extra office space, training and hiring professionals. You are sure that your bookkeeping is in the hands of skilled and reliable professionals when you choose to outsource bookkeeping services. 

In addition, outsourcing firms provide financial advice to help you make sound business decisions. We get enough time to focus on other core operations of the practice. If you are an accountant tied with a lot of tasks consider your option to outsource bookkeeping services to a reputable and compatible professional. 

What is Bookkeeping?

Bookkeeping refers to systematically recording and classification of financial data of an organization in an orderly manner. It is a record-keeping function to assist in accounting activities. The most common methods of bookkeeping are a single entry and double-entry system. 

The main objective of bookkeeping is to maintain complete and accurate data of all the financial transactions in a systematic manner. 

What is Outsourced Bookkeeping?

Outsourced bookkeeping is a service that handles day-to-day transactions, accounts payable, accounts receivables, managing financial reporting, payroll, and many other services virtually. Accounting Outsourcing Companies have highly skilled professionals who offer experienced teams of experts at a lower cost. 

Why should you outsource your Bookkeeping services?

Following are the benefits of outsourcing Bookkeeping:

  • Expert advice and knowledge of a qualified bookkeeper:

Whether you hire an in-house professionals team or outsource to an outside firm, the quality of professionals is the top priority. Keeping bookkeeping in-house certainly has its own limitations- could potentially lead to knowledge gaps, which could lead to issues in the long run thus requiring external help. On the contrary, outsourcing firms have experts who are always under training and are closer to evolving technology. 

  • Cost benefits:

For startups, cost becomes a significant factor. Outsourcing bookkeeping services can be cost-effective. There is no hassle of hiring and training a bookkeeper and paying a salary. In-house bookkeeping makes it mandatory to look after all these expenses. But with outsourcing, you only pay for the services that are required by you. 

  • Peace of mind:

As a business owner, it frees up your time and looks for the opportunity to grow. And also allows you to spend time with your family members or doing what you enjoy the most!

  • Latest technology:

When you outsource bookkeeping, you get access to the latest technology along with expertise inputs. The use of cloud technology allows businesses to get access to real-time information anywhere and anytime to make any key business decisions. The use of technology has the added benefit of setting meetings virtually between the client and a bookkeeper. 

  • Financial Reporting:

Financial reporting is distinct for each business and it depends on many factors such as monthly transactions, industry considerations, and much more. Working with an in-house bookkeeping department might be a little problematic as they do not have the right skill set required for a month-end report that is accurate and error-free.
While outsourcing these services can be fruitful, as they help in avoiding late or inaccurate financial reporting. They make the procedures streamlined for businesses. Financial reporting can be accurate and delivered on time with outsourced accounting companies as they have a team of experts and trained professionals. 

  • Internal Control:

This is another important factor to consider when choosing in-house or accounting outsourcing services. When you choose in-house bookkeeping, there are chances of fraudulent activities. Sometimes, there is a discrepancy of records which when comes to notice of the business owner, it’s too late.
When it comes to outsourcing accounting services, there is a division of duties. In outsourcing firms, there are two or more professionals assigned to keep a track record of the accounts and this ensures the records are reviewed and maintained thoroughly without any discrepancies. 

  • Ensure quality work:

Getting the work done timely, doesn’t mean compromising on the quality of work. An outsourcing firm has qualified and trained professionals in its team. They believe in building long-term relationships by delivering the highest quality of work delivered is their primary goal. 

Outsourcing bookkeeping can help you in the following ways:

  • It reduces the risk of fraud
  • It’s the most affordable choice
  • Outsourced accounting services provide a higher quality of work and access to expertise. 
  • It helps save you time and maximize your profits 

How do outsourcing bookkeeping services work?

Bookkeeping can be a tedious and stressful task. This includes accounts payable, accounts receivables, logging expenditures and receipts, and tracking profits and loss.
You can either hire an in-house bookkeeper to perform the task which can be relatively an expensive affair. Or you may outsource bookkeeping services in the hands of the expert who will perform the tasks by telecommuting electronically.
Once you have finalized a reputed outsourced company you wish to outsource to, you must communicate with them online. A dedicated account manager will then deliver your accounting documents and reports to you electronically spending on the specified contract. 

First and foremost, you need to grant access to your client’s financial information such as bank and credit card statements, payroll, tax documents, online bill pay, receipts, and everything related to your business finances.
Next, you need to set mutual expectations such as what you want him to work on every day? What information do you want when the month ends? How often you want to communicate and other such important questions to ensure both of you are on the same page. 

Lastly, communication is key. So you need to communicate your goals and how you want them to process the bookkeeping function. In what form you need financial reporting, what software are they going to use?

Conclusion:

Outsourcing services can be the best-suited option for your practice. It is more efficient and reliable than the in-house department. Some still prefer to have a dedicated in-house bookkeeper who sits and goes through everything on a daily basis. But at the end of the day, it’s your call on how you want to run your practice. 

It is essential to put your focus on growing your practice and attracting new clients, meeting the needs of your clients and maintaining good relationships, and leaving the burden of dealing with your client’s business finances to an outsourced bookkeeping service. 

10 Benefits Accounting and Bookkeeping Outsourcing Services

10 Benefits Accounting and Bookkeeping Outsourcing Services

Businesses find it challenging to focus on core activities while also managing accounting and bookkeeping services. Businesses do not start their business to do bookkeeping or accounting, their area of expertise is to increase business profitability and attract new clients, so it may take a long time for them to manage their books of accounts. It is also vital to manage accounting and bookkeeping accurately to make sound business financial decisions. Hence, businesses and practices hire in-house professionals, which may not be the best solution. 

Outsourcing accounting and bookkeeping services, allows you to better focus on the core activities of your business while leaving your books of accounts in the hands of expert professionals. Most businesses think that outsourcing accounting and bookkeeping services are only to save cost, but it is more than saving money. The same goes for Accounting firms whose core business isn’t limited to bookkeeping and other data entry related tasks but focuses on adding value to their client’s business.

While businesses outsource their Accounting needs to Accounting firms & independent CPAs, they, in turn, outsource their repetitive low-yield tasks to Accounting firms that can handle these record-keeping tasks.

Why so?

Well, here’s are a few reasons:

Top 10 benefits of outsourced Accounting and Bookkeeping services

Accounting outsourcing services help your firm to grow faster and stronger, sustainably:

The major goal of outsourced accounting services is to help you to maximize returns on your core competencies. By outsourcing, you are relieved to focus on the core activities of your business, that will help you to grow and sustain. You can focus more on marketing activities to attract more clients to your firm rather than managing a tiresome cycle of hiring, training, reviewing, managing and firing, and so on and so forth. By outsourcing, you can manage to save 50% of costs for your firm in the short and long run. 

You don’t lose projects and new clients:

When you outsource accounting and bookkeeping services, you have access to expertise and skilled professionals, so your service capability is not limited to the time you have. Instead, you can get more time work done without having to pay any extra penny. Hence, you don’t have to lose new projects or new clients just because you’re too busy handling accounting services. 

You cut overhead costs by paying only for actual work done:

Outsourcing firms offer services based on your requirement. When you outsource accounting and bookkeeping services, you only have to pay for what you have asked. This means you don’t have to pay for payroll taxes, overhead costs, vacation, sick leaves, training, etc. This will help you to save more money for your firm, increase profit margin, and at the same time, it will also help you to sell more work in a given time period. 

Outsourcing Accounting helps you to reduce the risks of suddenly losing staff:

Smalls and medium firms cannot afford to keep “buffer staff” to take care of events where you might suddenly lose staff members. If you are like most practice owners, you must have experienced the pain of losing staff all of a sudden. It can be because of longer work hours or stress that leads to losing staff. 

But when you outsource bookkeeping and accounting services, you work with a team of experienced professionals that is more reliable because of teamwork. The team of expert professionals, double-check the work done to ensure the quality of work is delivered on time. The main goal of outsourcing firms is to provide accounting services, hence they have a much larger team to absorb any such incident of losing staff suddenly without affecting service delivery. 

You improve productivity and work quality:

Many CPAs and accounting firms get frustrated with consistent errors, mistakes, and delays and review the needs of their in-house staff which is like money down the drain. But with outsourcing firms, this is never an issue. They have a team of experts and experienced team which takes care of your accounting activities stringent to ensure the quality of work is delivered. They also ensure you pay for reasonable productivity thus increasing your profit margin. 

You can give your clients a better quality service:

Outsourcing companies provide huge competitive advantages for you. They are equipped with knowledgeable CPAs and expert brains who provide quality of service. Their staff is trained for multiple services. When you outsource, you have the best brains of CPAs that give your clients better quality service. 

Outsourcing Accounting empowers you to introduce new services to your clients:

Even when you do not provide certain services due to a lack of skilled professionals or inclination to provide new services, outsourcing can help you to introduce new services for your clients. As outsourcing firms are well equipped with the latest technology and skilled staff, they offer a range of services. You can get leverage to your revenue source by providing services you always wanted to introduce. Many tax preparers or accounting services take the help of outsourced accounting and bookkeeping services to provide a full accounting package to their clients. 

You can adjust easily to your business cycle:

Accounting and bookkeeping can be a tedious and complicated task most of the time. Outsourcing helps you to increase staffing or cut back quickly depending on your business cycle. It provides you flexibility which is difficult to obtain on your own. 

You earn more without working more yourself:

The bottom line is when you outsource bookkeeping and accounting services, you earn more money without having to work yourself. First, you save money by not having to pay for full time or part-time wages and benefits to employees and the overhead. You also save money on lost productivity costs when your employees are on payroll. Your work gets done on time and you get access to expertise. It gives you the work-life balance that you have also dreamt of and also provides you peace of mind. 

You increase your firm’s valuation due to higher profitability:

When you outsource your accounting and bookkeeping services, you get access to experts who deliver quality work on time. This way you have a win-win situation where your clients are extremely happy thus increasing your profitability. 

Nearly, 90% of the firms and practices choose to outsource their bookkeeping and accounting services.  Outsourcing bookkeeping and accounting services help you to increase your profitability, reliability and also ensure accuracy while enabling you to get back to things that will help you to grow. 

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