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How Can A Bookkeeper Remove Your Financial Blindfold?

One of the most important accounting services is bookkeeping. It guarantees that taxes are proper. Also, it ensures that your finances are in order in case audited. Despite this, numerous companies fail to apply this critical procedure. Apart from the fact that it is required by law, keeping proper books and records saves time.

However, keeping your books isn’t something you should do to save taxes. Thus, bookkeeping is an excellent method for small company owners to stretch their dollars further. It also helps manage your company’s finances.

How can you make judgments if you don’t have good financial data? How can you plan to build your business without current income and spending data? You can’t. Your business bookkeeper helps remove the blindfold and reveal the financial status of your company.

How does a business bookkeeper take the financial blindfold off?

1. Budgeting 

How Can A Bookkeeper Remove Your Financial Blindfold 2

Bookkeeping is essential since it helps with budgeting. It is simpler to examine financial resources and spending when income and expenses are well structured. A budget creates a business’s economic path. With a budget, you can prepare for future costs and the resources you’ll need to cover them.

2.Accounts receivable and cash flow

Accounts receivable and cash flow

Cash flow is essential to any firm, regardless of its stage of development. A typical issue is that a company sells its products and services like crazy yet doesn’t have any cash on hand. The root of this problem is accounts receivable. Keeping track of your invoices and accounts receivable improves cash flow.

3.Preparation of tax returns 

Preparation of tax returns

Millions of company owners rummage through their desks every year, searching for misplaced documentation. Does this ring a bell?

Having an accounting department inside your firm makes the tax filing process effective.

A significant portion of your revenue as a business owner comes from your company. Thus, to figure out how much you made, you must first determine how much revenue your company has made. Bookkeeping is also necessary for completing your tax return.

With a proper bookkeeping system, you will have your financial information ready for the tax season. So, instead of looking for receipts or invoices, now you will be able to find all your financial information in one place.

4.Monetary forecasting 

Forecasting is an essential step for a company to take. With up-to-date income and spending statistics, you can start financial forecasting. But forecasting is impossible without correct books. And, accurate books can only be obtained by monthly account reconciliations. Yet, many companies fail to keep their books up-to-date. Thus, making forecasting impossible.

5.Financial analysis 

How Can A Bookkeeper Remove Your Financial Blindfold 8

A bookkeeper helps with company analysis. It is like a management tool that helps in analysing the business performance.

Financial statements are the result of bookkeeping. Thus, they should be created and analysed regularly. You trace your cash inflows and outflows while studying the financial statements.

A bookkeeper informs you whether the business lines are profitable. This study enables you to concentrate on your company’s strengths while also addressing its faults.

6.Planning objectives 

Planning objectives

A company’s prior financial performance is presented in bookkeeping. It would be best if you thoroughly comprehend the past to plan for the future. A bookkeeper provides a clear image of what works and what doesn’t.

So, bookkeeping helps with strategic planning and is integral in tax planning. It provides your CPA with all the information to appropriately categorise revenues and costs. You can organise some expenses to be beneficial. For example, if you have frequent meetings with clients, you can give lunch during those sessions. Thus, helping your company profit from lower taxes.

7.Investor reporting 

Investors want to know about the company’s financial performance to determine the worth of their investment. That is what financial statements do. The balance sheet, income statement, and cash flow statement represent your company’s value.

Now, investors can get up-to-date information, thanks to bookkeeping. The ultimate goal of accounting is to enable investors to make better judgments.

Bookkeeping is vital for both present and future investors. With structured financial information, prospective investors invest more in your company.

8.Expansion strategy

Expansion strategy

Few companies do not desire to expand. But, most people want to grow. However, they aren’t sure how to do it. Growth is about much more than money. Taking a closer look at your present financial status helps with your company expansion strategy.

Conclusion

There’s much useful information hidden behind your financial blindfold, and it’s all connected. Make sure your business’s bookkeeping is up-to-date, manage your cash inflow, produce a financial projection, and expand your company. Now, you also know the importance of a bookkeeper. They help save money, time, and stress.

So, leave it to the professionals! Consider employing an accounting specialist to assist you. You can also outsource your bookkeeping services to a professional provider.

Bookkeepers Near Me – How To Hire The Best Bookkeeper For Your Business In 2021?

For your small business’s upscaling, effective bookkeeping holds the key! Bookkeepers Near Me

How much did you spend on your recent office upgrade? How much money do you owe to your suppliers? To get accurate and up-to-date records of your financial transactions like these, you must acknowledge the importance of bookkeeping.

Even the Australian Taxation Office (ATO) emphasizes record keeping for small businesses.

Due to its endless advantages for businesses, bookkeeping is no longer a luxury but a necessity. It not only helps you track your cash flow but also gives insight into what’s happening on a basic financial level. Besides, record-keeping lets you make informed financial decisions to stay on top of your finances.

Moreover, a bookkeeper will help you overcome these questioning financial challenges. If you’re motivated enough to hire a bookkeeper for your small business, here are some tried & tested tips you’d consider.

How can you hire an ideal bookkeeper for your business?

To the point, financial decision-making is important for your business to develop. It shapes the financial fortunes of your business besides maximising returns for its shareholders.

It’s a common observation that most business owners lack the aptitude of hiring an ideal bookkeeper who would add value to their business. To overcome this, I’ve compiled the following expert tips for the best hiring. So, let’s dive into this right away.

Hire someone with exemplary attention to detail

Since a bookkeeper is going to track, record, and organise your business’s day-to-day financial transactions, the candidate’s attention to detail is the deciding factor here. That is, if your bookkeeper lets things fall through the cracks and doesn’t follow up on every minute item, he/she is going to let your business down.

An ideal bookkeeper is one who is a hawk i.e. someone who fusses about being able to account for every financial detail correctly in their books.

Ask for referrals from trustworthy industry sources

When you’re hiring a bookkeeper for your small business, your obvious Google search is going to be “bookkeepers near me”. Though it’s common, it isn’t going to produce useful results.

Instead, relying on your industry’s referrals is a much better option.

Ask your fellow business professionals to know if they have contact with any trustworthy bookkeeper they can refer you to. As your last resort, you can contact the Institute of Certified Bookkeepers or ICB.

Bookkeeping software familiarity

Bookkeeping, in today’s time, has switched to easy-to-use cloud-based bookkeeping solutions such as Xero, QuickBooks, MYOB, Sage, among others. Hence, it’s recommended to find out which software among these the candidate is most familiar with. After all, you won’t want to hire someone who is an expert with software you don’t even use or have ever heard of!

Look for a professional bookkeeper

Put the myth “bookkeeping services are fairly straightforward” off your mind when you’re looking for a bookkeeper. This is because not all bookkeepers would work the same way and generate the same financial reports for you.

The standard bookkeepers offer the following standard financial statements to understand your business’s financial health.

  • Income statement,
  • Balance sheet,
  • Cash flow statement, etc.

However, you’d need someone more professional for your evolving business who could accommodate your requests regarding the statements like:

  • Statement of changes in shareholder equity,
  • A capitalization table,
  • Sources and uses of funds statement, etc.

This can only be done by a professional bookkeeper. Therefore, it’s better to hire a professional bookkeeper.

Professional demeanour of the bookkeeper

Merely business knowledge isn’t everything you must take care of. The individual’s professional demeanour is also a serious point of consideration here. Bookkeepers are the key aspect of the fiscal operations of your small business.

They will engage with both your staff and outside clients & vendors. Hence, hire someone who can conduct themselves professionally and whose personality matches your company’s culture.

Tax preparation and planning skills

The major issue most businesses face is preparing for the tax season. Hence, the bookkeeper should have the required skills to get your company prepared for tax season. For example, the candidate should know the applicable tax deadlines for items like quarterly tax estimates. Further, knowledge about how to keep books and receipts organised for the tax season and audits is compulsory.

Final verdict

To further 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 accounting to do.

When you hire bookkeepers, you long for peace of mind, which also involves taking chores like recording and payroll off your plate.

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

Or

info@outbooks.com.au

What To Consider Before Outsourcing Bookkeeping In 2022?

Your business’s growth is driven by robust financial management and monitoring. Effective bookkeeping is what matters for the same. Nevertheless, Outsourcing bookkeeping is a tricky process as it translates to recording your business’s financial transactions and other information daily.

Furthermore, it’s equally time-consuming. As a result, many businesses now prefer outsourcing it to more capable hands to get enough time to focus on their other core business activities.

However, you can’t ignore the fact that outsourcing bookkeeping services aren’t ideal for everyone. Yes, you heard that right. To know whether outsourcing bookkeeping is the perfect solution for you or not, be mindful of the following points.

Keep the following things in mind before you choose to outsource bookkeeping

The following are the crucial things proposed by the industry experts that you need to remember before planning about outsourcing your bookkeeping operations.

Know what you want!

When you outsource your bookkeeping operations, it’s just like having someone outside your company handle your day-to-day books. Hence, it’s important to have clear expectations of what your outsourced bookkeeper can and should do. In simple words, you should know what you want in return from the bookkeeper.

For example, here are some standard services of a bookkeeper.

  • The bookkeeper will ensure timely payment of all valid taxes to avoid penalties.
  • The bookkeeper will regularly reconcile your bank accounts.
  • Bookkeeper will also maintain other financial records for the accountant to timely file and pay your business taxes at the end of the year.

Hence, you should have clarity on what you expect from the bookkeeper.

Pricing is important too!

When you outsource bookkeeping, you’ll generally come across multiple payment schemes. While some firms charge on an hourly basis, others may charge every month. Thus, you must inquire about the payment terms and choose the bookkeeper that fits your budget.

Another thing is that though outsourcing is a cost-effective approach, at times, you will realise that the bookkeeper is taking longer than you thought to get the work done. Hence, you will end up paying more than your estimation. To avoid such situations, you must be sure about the delivery accuracy of the bookkeeper to save yourself from these extra costs.

The scale of different tools & technologies in use

The scale of different tools & technologies in use

Being tech-savvy is the first & foremost necessity to survive in the market. All accounting firms and CPAs nod to this. Thus, getting access to modern tools & technologies is another reason to walk down the lane of outsourced bookkeeping.

Inquire about what types of accounting and bookkeeping tools or systems your outsourced bookkeeper is conditioned to. It’s advisable to select firms acquainted with popular bookkeeping & accounting software such as QuickBooks, Xero, MYOB, and Sage.

Turnaround time for the service(s)

Above all the above-mentioned aspects, the main thing to consider while outsourcing is the turnaround time for the service(s). One of your main motives for outsourcing bookkeeping is the timely completion of tasks. Your company can’t progress if there happens to be needless delays and backlogs from your bookkeeper.

Any delay or backlog will not only lead to late tax return filing but will leave no or very little time for you to go through the books. Hence, look for a company that’s ready to remain on its toes for the timely completion of your work.

Ensure that the outsourcing company is using platforms licensed to you

Outsourcing Bookkeeping outbooks

While outsourcing, you must also ensure that the company is using the platforms licensed to you. This will also ensure 100% security of the key financial data you’ll share with the bookkeeper besides helping you stay GDPR compliant.

Note: Being a business owner, you must have sufficient knowledge about GDPR.

Prepare yourself for the common issues after bookkeeping

Yes, you heard that right. Though outsourcing mostly associates with advantages, it does have its issues. For example, you lose some control over how the tasks are being monitored and performed.

Since you’ll share your business’s financial data with the outsourcer, any problem at the latter’s end might prove costly to your business. Similarly, there are other issues you’d prepare yourself with while outsourcing.

Conclusion

Outsourcing bookkeeping has surely turned the tables for many businesses across the globe as proved by these facts. However, it’s equally correct that outsourcing may not be an ideal solution for you. Hence, you must be sure about the above things before making your mind for outsourcing bookkeeping.

We, at Outbooks, take immense pride in introducing you to our Xero-certified bookkeepers who hold sound experience with the industry’s modern tools & technologies to take your bookkeeping to a whole new level.

Contact us today for your free trial & take your business to new heights.

Bookkeeper Services – An Ideal Way To Avoid Some Common Business Pitfalls

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

 

Bookkeeper Services

 

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.

Incorrectly organising your small business expenses

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

 

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

 

Bookkeeper Services - An Ideal Way To Avoid Some Common Business Pitfalls (2)

 

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.

 

Final Words!

 

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

Or

info@outbooks.com.au

Bookkeeping For My Small Business – Here’s How To Do It Correctly In 2021

Irrespective of your business size, bookkeeping is an important operation that requires significant attention. Not only it helps you understand your financial health but also keeps track of your small business’s cash flow. Besides, there are tons of other advantages of bookkeeping for small businesses. For example, it helps you separate your business and personal finances, identify & prevent financial errors, streamline your tax processes, among others.

Now, there are multiple ways of doing bookkeeping for your small business. The most common among these are either hire an in-house bookkeeper or outsource your bookkeeping operations. However, being a small business owner, you can also do simple bookkeeping of your business. If you choose to do bookkeeping by yourself, here’s a complete guide to help you out.

 

Important Bookkeeping Terms You’d Know Before Starting Out | bookkeeping for my small business

 

If you’d search “how to do bookkeeping for my small business” online, you’d come across the following list of important terms. Let’s go through them first.

Accounts Payable (AP)

Bookkeeping For My Small Business

It’s the account that keeps the record of all money you owe to the third party(s). These include suppliers, banks, governments or anyone you borrowed money from.

Accounts Receivable (AR)

Accounts Receivable (AR)

It’s the account that keeps the record of all money the third party(s) owe to you. In simple words, if you were to receive money from anyone, it’ll fall under the account receivable category.

Assets

Assets are those things owned by you to successfully steer your business. For example, cash, vehicles, electronics, buildings, and much more.

Balance sheet

Balance sheet

A balance sheet is the backbone of your business that presents you with your business’s financial condition. In simple words, it breaks down the assets, liabilities, and capital of your business for analysis.

Bookkeeping | bookkeeping for my small business

Bookkeeping

Bookkeeping is the practice of recording your business’s day-to-day financial transactions and other documents such as purchases, sales, receipts, and payments.

Capital

Capital signifies the total money or assets that personally belong to you. Additionally, it’s worth noting that “capital” doesn’t include the revenue or profit generated by your business.

Depreciation

It’s defined as the loss of value of your assets over some time due to a variety of reasons.

Equity

It’s the money you put into the company as the owner. Plus, it also includes all the accumulated profits.

Expense

Whatever money you spend to operate your business is called an expense. It’s not related to selling your services. For example, the money you spent to purchase laptops for your employees is an expense.

General ledger

It’s the account that contains all the transaction data required to generate the income statement, balance sheet, and other financial reports.

Journal

A journal is a place where the bookkeeper stores all the transaction details for easy & quick access as and when required.

Payroll

Payroll is the process of compensating your employees for a set period or on a given date. It’s the biggest component of a bookkeeper’s duty.

Revenue

It’s the money you make through selling your services. Your business revenue also includes the money you get by selling the assets your business don’t need any longer.

Trial balance

Trial balance

It’s a bookkeeping worksheet. In a trial balance sheet, the balance of all ledgers is collected into debit and credit account column totals that are equal.

When you’re starting with bookkeeping, you should have a clear understanding of the above terms.

As your next step, below are some useful tips to properly execute your small business’s bookkeeping operations.

 

Expert Tips To Execute Your Small Business’s Bookkeeping Operations

 

I bet the following expert bookkeeping tips will transform your small business into a money maker and answer your query “how to do bookkeeping for my small business”.

  • Always create a new business account to keep your finances and your business dealings separate. Thus, at the time of bookkeeping, you’ll know where to look for the required financial information.
  • It’s recommended to budget for tax separately to avoid paying a big chunk at once. For example, you can set aside a
  • small portion of your income in a savings account or something similar. Then, use this saved money to pay off your tax as and when the taxman knocks on your door.
  • Always keep your records organised for easy access in the future.
  • You should track all your business expenses irrespective of their magnitude. For example, track the money spent on office upgrades, equipment upgrades, and so on.
  • Use any cloud-based bookkeeping software like Xero, QuickBooks, or MYOB to maintain your daily records.
  • Mind your account receivables. Keep eagles eye on your receivables as it can affect your cash flow.
  • Don’t miss your tax due dates. Not filing your tax returns on time not only invites tax penalties but also worsens your taxation process.
  • Last but not least, go digital! The Australian Taxation Office (ATO) lets you do the majority of your tax reporting and transactions online through their digital services.

Hence, these are the top expert tips to assist you in your small business’s bookkeeping.

The Final Verdict

Bookkeeping is an essential component of your business that keeps you on the top of your financial game. Though you can carry out bookkeeping for your small business by yourself, it’s not a good idea for a fast-growing business.

In that case, outsourcing your bookkeeping services works out the best. Thus, if the same thoughts are striking your mind, partner with Outbooks, your right outsourcing partner.

We provide a multitude of Xero bookkeeping and accounting services to empower your business, such as data entry, account receivable & payable, account management, and much more.

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

Or

info@outbooks.com.au

Bookkeeper – Your Ultimate Guide To Hire The Best Candidate In 2021

Bookkeeping is important for any business to survive and flourish. How much did you spend on your last office upgrade? How much revenue did you earn from inventory? If you want accurate and up-to-date records of your financial transactions, you must acknowledge the importance of Bookkeeper. Even the Australian Taxation Office (ATO) emphasizes record keeping for small businesses.

Today, bookkeeping is no longer a luxury but a necessity for your small business. It’d help you track your cash flow and understand what’s happening on a basic financial level. Furthermore, effective bookkeeping lets you make informed financial decisions that help you avoid under or over-spending.

Moreover, a Xero bookkeeper will help you overcome these questioning financial challenges. If you’re motivated enough to hire a bookkeeper for your small business, here are my tried & tested tips you’d consider.

Here’s how you can hire an ideal bookkeeper for your business

Here's how you can hire an ideal bookkeeper for your business

As said initially, effective and sharp financial decision-making is important for every business to develop. Not only it shapes the financial fortunes of your business but also maximises returns for its shareholders.

What I’ve noticed is that most business owners lack the aptitude of hiring an ideal bookkeeper that’d add value to their business. To overcome this, I’ve compiled the following expert tips for the best hiring. So, let’s dive into this right away.

1. Hire someone with exemplary attention to detail

Since a bookkeeper is going to track, record, and organise your business’s day-to-day financial transactions, the candidate’s attention to detail is the deciding factor here. That is, if your bookkeeper lets things fall through the cracks and doesn’t follow up on every minute item, he/she is going to let your business down.

An ideal bookkeeper is one who is a hawk i.e. someone who fusses about being able to account for every financial detail correctly in their books.

2. Don’t trust Google blindly! Ask for referrals from trustworthy industry sources

Don't trust Google blindly! Ask for referrals from trustworthy industry sources

When you’re hiring a bookkeeper for your small business, your obvious Google search “best bookkeeper near me” isn’t going to produce useful results. Instead, relying on your industry’s referrals is a much better option.

For example, if you have an accounting firm that you trust, enquire whether they can provide you with bookkeeping services as well. If not, ask them if they have contact with any trustworthy bookkeeper they can refer you to.

As your last resort, you can contact the Institute of Certified Bookkeepers or ICB.

3. Find out which bookkeeping software they’re familiar with

Find out which bookkeeping software they're familiar with

Today, bookkeeping has gone modular with the introduction of easy-to-use cloud-based bookkeeping solutions such as Xero, QuickBooks, MYOB, Sage, among others. Hence, you’d find out which software among these the candidate is most familiar with. After all, you won’t want to hire someone who is an expert with software you don’t even use or have ever heard of!

For your reference, Xero and QuickBooks are currently the most in-demand bookkeeping software. Hence, either of the Xero or QuickBooks bookkeepers would conclude your search.

4. Hire a professional bookkeeper for more advanced bookkeeping services

Put the myth “bookkeeping services are fairly straightforward” off your mind when you’re looking for a bookkeeper. This is because not all bookkeepers would work the same way and generate the same financial reports for you.

For example, the standard bookkeepers offer the following standard financial statements to understand your business’s financial health.

  • Income statement,
  • Balance sheet,
  • Cash flow statement, etc.

However, as your business will grow in the future, merely the above basic statements won’t suffice. Thus, you’d need someone who could accommodate your requests regarding the statements like:

  • Statement of changes in shareholder equity,
  • A capitalization table,
  • Sources and uses of funds statement, etc.

This can only be done by a professional bookkeeper. Therefore, it’s better to hire a professional bookkeeper. 

5. Check the professional demeanour of the bookkeeper

Merely business knowledge isn’t everything you must take care of. The candidate’s professional demeanour is also a serious point of consideration here. Bookkeepers are the key aspect of the fiscal operations of your small business.

Thus, they will engage with both your staff and outside clients & vendors. Hence, hire someone who can conduct themselves professionally and whose personality matches your company’s culture.

6. Keep in mind the candidate’s tax preparation and planning skills

The major issue most businesses face is preparing for the tax season. Hence, the bookkeeper should have the required skills to get your company prepared for tax season. For example, the candidate should know the applicable tax deadlines for items like quarterly tax estimates. Further, knowledge about how to keep books and receipts organised for the tax season and audits is compulsory.

Pro tip:

Hiring a bad bookkeeper could hinder your business operations and financial growth. Hence, you must perform due diligence before inviting anyone for the hiring process. Further, if you’re not in favour of a full-time bookkeeper, contact any outsourced accounting firm.

They will provide you with both, affordable part-time bookkeepers & other support(s) without hitting your pocket hard.

Final verdict

To further 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 accounting 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

Or

info@outbooks.com.au

How Much Does The Bookkeeping For Small Business Cost?

Over the years, both accounting and bookkeeping services have witnessed a significant transition to a more integrated & cloud-based approach. From the traditional pen & paper, bookkeeping now involves the use of centralized and cloud-based software such as Xero, Sage, MYOB, QuickBooks, and so on.

Due to this, more emphasis is now being put on bookkeeping and its place in the growing organizations irrespective of their size since it helps them know their financial status, cash flow, and much more.

If you’re based in Australia and wish to avoid any sort of tax penalty due to failure to meet any tax obligation, it wouldn’t be unwise to look for professional bookkeeping services. In Australia, the cost for the same, like any other place, is influenced by several factors.

For instance, the nature of the service, the experience of the bookkeeping professional (aka bookkeeper), and the size of your business are a few of them. Continue reading till the end to know all about bookkeeping and accounting services in Australia and our recommendation of the best in the industry.

What Is Bookkeeping?

 

How Much Does Bookkeeping Services Cost

First and foremost, what exactly is bookkeeping? Simply put, bookkeeping translates to recording a company’s financial transactions regularly. What necessitates bookkeeping is its ability to help organizations take critical operating, investing, and financing decisions based on their organized books.

The person who undertakes the responsibility of bookkeeping company’s financial transactions is called a bookkeeper. Thus, it isn’t wrong to say that without proper bookkeeping, you wouldn’t be aware of your current financial position and the transactions that occur within your company that can lead to negative results in the future.

What Does Bookkeeping Services Involve?

 

Recording all your financial transactions onto a bookkeeping services platform for easy access

As referenced earlier, bookkeeping today involves a range of online cloud-based platforms for easy access. This means you can monitor your cash flow in real-time, with the touch of a button. Due to this, you can promptly make key decisions before it gets too late.

Before bookkeeping, all businesses used to do was play the guessing game and make decisions based on “gut instinct”. However, bookkeeping has invalidated this guessing game.

The bookkeeper will allocate each transaction to either a specific cost or revenue

For a successful business, keeping your transactions under scrutiny is a critical aspect. To do so, it’s vital to allocate each transaction to either a specific cost or revenue. That’s exactly what constitutes the responsibilities of a professional bookkeeper or bookkeeping services.

A bookkeeper can accurately oversee payments and keep track of credit control to ensure your business is 100% compliant.

Reconcile bank statements

Thanks to today’s cloud-based bookkeeping tools, bookkeepers can ensure that your books are reconciled with your bank statements in real-time. This further ensures that your books match the records of your bank statements of the same period.

Maintaining up to date and accurate book records

Bookkeepers ensure that all your business records remain up to date. Additionally, it’s on their part to flag up any inconsistency(s) between your books and business accounts to resolve the problem(s) promptly.

What are the other bookkeeping services your small business can make use of?

 

Bookkeeping Services Your Small Business

An ideal bookkeeper looks after your books intently and every day. Someone who’s accuracy-based and capable of helping you settle on data-driven decisions by staying up to date with the latest trends and updated books.

MYOB - A Business Accounting Software outbooks Australia
MYOB – A Business Accounting Software

Another quality aspect of any bookkeeper for your business is how well-versed they’re with the latest bookkeeping and accounting ledgers & tools such as MYOB, XERO, QuickBooks, CLASS | SUPER, and Sage.

The various other duties of a bookkeeper include:

  • Bookkeeping including accounts payable and accounts receivables
  • VAT returns
  • Payroll
  • Tax filing
  • End of year reporting
  • Processing of transactions and expenses
  • Reconcile customer and supplier ledgers
  • Preparing analytical reports

How Much Bookkeeping Services Cost In Australia?

The cost of bookkeeping services in Australia is a matter of few things. These include:

  • The nature of the services,
  • The experience of the bookkeeper,
  • Frequency of bookkeeping,
  • Integration(s) with the bookkeeping platform,
  • Quality of the paperwork received from the client,
  • Whether the business is GST registered or no, and
  • Organization size.

All in all, all these and other factors are directly proportional to the bookkeeping costs in Australia.

Further, you get the liberty to choose whether you want to hire the bookkeeper on an hourly, monthly, or yearly basis. At times, you might be presented with tailored plans to suit your bookkeeping requirements, thus saving you a few more bucks.

Breakdown of bookkeeping cost in Australia

Let’s break down the standard bookkeeping cost taking into account a few of the above-listed factors.

Nature of bookkeeping services

Going by the nature of the bookkeeping services, they can be either full-time and part-time. Without any discussion, the former is always costlier than the latter. Thus, if you’re a small business owner, we’d suggest you start with part-time bookkeeping to avoid a cash crunch.

Additionally, specific services come with different prices attached to them. For example,

Services Average cost
General bookkeeping $100
Accounts payable $250
Ongoing bookkeeping $150-250
Experience of the bookkeeper

The experience of the bookkeepers is also a vital factor in determining how much you’d have to shell out to enjoy their services. As a thumb rule, the more experience your bookkeeper would hold, the higher the costs. However, keeping aside the cost factor, it’s always recommended to opt for experienced folk owing to the expertise they have built over time in the various processes of bookkeeping.

Business size

The size of your business will determine how much work the bookkeeper would have to do daily, and this will impact the sum you’d have to spend in the end.

Frequency of bookkeeping

How often you do bookkeeping has also a major say in how much you’d have to spend on bookkeeping. While most businesses prefer weekly bookkeeping, others go for the same on a daily basis. Thus, the higher the frequency of bookkeeping, the higher will be its cost.

In a nutshell, there’s nothing fixed about how much bookkeeping services cost in Australia. You’d be mindful of the various reasons supporting the same.

Have you made your mind about outsourcing bookkeeping?

If yes, you’re at the right place. 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 accounting 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 Or info@outbooks.com.au

Outsource Bookkeeping – 3 Ways To Motivate Your Team Towards It

Change is indeed inevitable. When your firm grows, its number of activities increases. This translates to an increase in the cost of doing those activities too. Due to this, hiring a professional in-house can take a lot of your funds, so it’s better if you outsource those functions to an outsource bookkeeping agency. By doing so, you get the same level of experience and eligibility but at a much lower cost.  

The absolute first issue that any business is probably going to face while choosing to outsource bookkeeping is the lack of support from staff. When you choose to outsource, it puts your staff thinking about their future and professional stability in your firm. For fruitful outsourcing, you need to take forward your workers with you.

In this blog, we’ll talk about the ways to limit the resistance from your staff members and make them aware of the new opportunities that will accompany outsourcing.

Tell them about the “vision” & “mission” of your firm 

Your workers need to firmly line up with your organization’s objective. For this, the directors should tell everybody about the “vision” & “mission” and urge workers to follow them. They should likewise communicate about the hurdles that non-core business activities like – offshore accounting & bookkeeping brings to the firm. It will prompt keep them in line. It assists you with operating your business all the more adequately and proficiently.

Initiate training and teach them about new opportunities & outsource bookkeeping 

Give training regarding new functions and educate them about career growth they’ll see once free-up from their tedious bookkeeping work. It is a great idea to include staff in new activities and systems. 

Employers should conduct meetings and teach workers about new business opportunities and how they can help in growth. It will improve their efficiency and assists employees with getting a handle on the new processes expected through outsourcing. It enhances future performance and helps them to focus on their skills better. 

Open communication – Outsource bookkeeping

You must have non-stop communication with your staff through different channels. You can send them an email, call them, or send an instant message reckoning the need to outsource. It removes errors and urges them to talk about their opinions. This activity assists with creating trust among staff and managers. It will likewise make your staff comprehend the requirement for change in current processes. 

Highlight the Positives 

Underline the advantages that outsourcing will bring. For example, reducing tedious work, a chance to zero in on core tasks and having a professional who is there to assist them. They can free themselves from constant updates from ATO regarding tax claims and schemes. Moreover, with outsourcing you can save 70% of overhead costs (as per Deloitte research), in that way, you can offer perks and incentives to employees also. 

To sum up!

You can assist your staff with the understanding that outsourcing is nothing to fear about. Furthermore, indeed, can help them better concentrate on duties they were employed to do, decrease their feelings of anxiety and cause them to feel like they are being more useful. Which incidentally, makes the work environment joyful.

Outbooks offers quality bookkeeping services to the accounting firms of Australia. We have a team of experienced and eligible accountants who deliver accurate results before deadlines. Get in touch with us!

Contact us on +61 451320102

Or

info@outbooks.com.au

How smart accountants leverage technology?

The blast in the information that has started the Fourth Industrial Revolution, a period when business operations will get changed by digital technology frameworks, has empowered a few innovation trends to create. Each business can use these significant technologies. They should focus on using these technologies to accomplish the organisation’s business system. Further, it’s also necessary that accountants leverage technology. 

While the worry is obvious among the bookkeepers, the use of correct technology can avoid such worry(s). This includes the service operations software that integrates with the tools you require to streamline your business. 

The right technology will automate and smooth out your everyday work process. Thus, keeping you from feeling disappointed, unmotivated, and muddled.

So, right away, there are different ways Australian accountants leverage technology. 

Enterprise resource planning (ERP) systems

ERP systems make information easily accessible. Further, they hold activities between the various divisions of a firm. The data is made accessible through a typical database management system and shared through functional regions. For example, HR, accounting, sales and marketing, production, etc.

Accountants do the smartest thing by keeping their team and the production teams of their clients on the same page. They try to sync payment and invoices automatically from XERO accounts to any smart platform. 

Through this, accountants find it very easy to get access to ledger codes, tax codes, and client details in one dashboard. This helps them to calculate and update their client’s business information. Simply think about the amount of time you’ll save with paperless tax forms which could otherwise cost you up to thousands of bucks every year. 

Accountants leverage technology such as cloud-based accounting 

Many bookkeeping service firms still utilise outdated software. This is what they’re familiar with. However, cloud accounting is changing the whole work process that includes:

  • Lodging tax files,
  • Organising source archives,
  • Filing of tax forms,
  • Audit and conveyance, and
  • e-filling

All this can now get handled by an “all-inclusive resource” cloud-based innovation.

You collect the data in one place for less confusion. In the dashboard, there is a feature of the client access. It’s a typical interface where clients and accountants can work together. It also allows clients and bookkeepers to transfer and download records and speak with one another. Also, they can share information from anywhere with the device at any time. 

Accountants Leverage Technology Such As Blockchain 

One more trend affecting the eventual fate of bookkeeping jobs is Blockchain innovation. It’s a computer-based recording framework that utilises digital money inside a user-to-user network.

While Blockchain may have acquired fame due to bitcoin, the innovation has advanced significantly. It is another kind of bookkeeping ledger. It can get persistently refreshed and validated without the danger of being changed or corrupted.

Since Blockchain empowers clients to get to records continuously, make savvy contracts, and document transactions, it’s obvious why the framework is attracting the bookkeepers. Truth be told, many outsource accounting firms as of now utilise Blockchain.

To Sum Up

Technology has expanded. And so has the bookkeeper’s capacity to dissect statistical work. Improving the bookkeeper’s capacity to understand information productively and successfully without hardly lifting a finger is why accountants have started working as business counsel. 

If you are also looking for an outsourced offshore bookkeeping partner for your firm, just contact our experts and let us know all your issues. +

Contact us on: +61 451320102

Or

info@outbooks.com.au

Accounting Team – 5 Tips To Build A Valuable Team In 2021

Being ambitious in the present business environment indicates developing the way you work and employing talents considering that. Accounting and bookkeeping firms always complain that they can’t find and keep a decent staff. 

While the need for talented bookkeepers is occurring more than ever, the number of acceptable candidates is consistently decreasing. While senior bookkeepers leave after ageing out, others leave on their own. Further, today’s skilled graduates look for careers in different ventures.

The accounting & bookkeeping business is changing rapidly. Further, today’s individuals are seeing this industry as dull, less paid, and ailing in improvement opportunities. 

Today, the majority of impressive candidates attract towards IT companies, the marketing world, and innovative start-ups. On the other hand, the individuals who stay in accounting rely upon to work in a firm for at least 4 years. It is excessively long for some yearning recent college grads except if they’re being prepared for ownership.

Most accounting firms favour somebody with a few years of experience. They need balanced bookkeepers who know tax law. Besides, someone who has an understanding of the value-added services and use numbers to drive the procedure. While misguided education policies have given rise to an excess of bookkeepers in Australia, they have less compliance knowledge and auditing skills.

How can your accounting and bookkeeping firm deal to stay reasonable in a quickly evolving industry? Here’s a quick guide for the same.

Nurture your current geniuses 

Guide your current employees and reward them with regular incentives and development opportunities. Facing problems in offering the compensation of a bigger firm? Don’t worry, get inventive. 

Some inventive ideas include holiday leave, company lunches, gym offers, and office trips. Remember, all these are highly appreciated by employees. Further, work-from-home (WFH) is something every employee would prefer in the post-COVID world. 

Put your resources into what’s to come 

Generate more clerk level jobs and give continuous training. While recruiting somebody with some experience appears simple, it’s likewise costlier. Xero, in its study, found that:

In 20 years, 80% of bookkeeping occupations will get automated.

However, some human interference will still hold significance. 

An enormous amount of information analysis has featured a requirement for client advisory services; assisting them with figuring out what the numbers mean. The government has multiple tax obligations on the corporate world, understanding this employee will be needed. 

Soft skills matter too in accounting 

Indeed, you must check the core accounting skills of the candidate while hiring. However, don’t forget the importance of soft skills. For example, problem-solving, critical thinking, leadership, and risk analysis skills are what an accountant must possess. 

Roles like client advisory and auditing requires more soft skills. Thus, your employees will feel more secure and satisfied if they possess sufficient soft skills. 

Evolve client-accountant relationships

With technological advancements, clients have evolved themselves too. Nowadays, they don’t just rely on your tax lodging and compliance work. They demand more from your firm. They need help in budget analyst forecasting, financial planning, business scaling rather than simple record keeping and payroll handling. 

You must advise your clients related to their needs and solve their queries to develop relationships. Keep their work on priority and engage more with them. 

Outsource time-consuming tasks like accounting 

Take the support of an accomplished outsourcing accounting and bookkeeping services firm. When searching for an outsourcing supplier, pick an agency sufficiently large to take on work immediately. 

Allow one individual, like your office supervisor as a point of contact to guarantee consistency and clearness for your outsourcing group. Additionally, some outsourcing organisations will provide a free trial of their services so you can choose the best one. 

How Outbooks can help? 

Having proficiency in Australian tax laws, budgeting & forecasting, management accounts, and payment management; experts at Outbooks can set up the systems they require to begin within a few hours. Thus, overseeing most parts of the technical handover for your support. 

In case you’ve limited staff and are facing an occasional spike in your responsibility, a 10-minute call is all it takes. 

 

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