Some small and medium business (SME) owners attempt to do their own accounts or they may worker a bookkeeper directly. This can be fine if you are lucky enough to recruit an excellent bookkeeper directly, yet unless you’ve an accounting background and also a thorough knowledge of the accounting software involved, it can be tough to understand what questions to ask in the interview process.
Even if you find a person who seems great on paper, unless you know what reports to ask for it can take months to pick up if they are performing or not. Through 50% of clients that can come to us have had a negative experience attempting to employ a bookkeeper directly. Usually within the first week we uncover matters such as:
— Double payment of creditors invoices
— Bill of revenue
— Incorrect GST coding generally resulting in underclaiming GST Credits
— Miscalculation of superannuation and payroll tax of employees and contractors
These errors can be quite costly and at times final for many companies.
Here’s 7 manners a professional onsite bookkeeper can save cash:
1. Enable you to work “on your business, not in your company!”
I am aware, it’s an old chestnut from that fantastic novel E Myth and which forms the basis to many business coaching strategies. It’s the secret to having the capability to grow any business and applies to bookkeeping just like some other section of your business.
In case you employ a bookkeeper, you still have to monitor the quality of their work, when they work, when they take vacations, etc. By outsourcing all your accounting and bookkeeping functions to an expert bookkeeper, all of your accounts duties become their responsibility and also you can focus on growing your company, with the confidence that you’re getting accurate reports on your performance and meeting all statutory obligations.
2. An onsite bookkeeper gets to know your business
There are a number of bookkeeping services in Washington DC that offer to manage your accounts from their office that could be based anywhere. This involves transferring source documents either electronically or physically back and forth from your office to theirs. While this may be good for micro businesses, it could prove challenging once your company starts to grow.
Before you are able to supply meaningful management reports, you should know how a company runs and what are it’s key performance indicators. The only way to achieve this efficiently is to get to be familiar with business and the individuals who work inside the business. This could just be done by performing the bookkeeping functions in the clients premises.
3. There is “bookkeepers” and then there is “bookkeepers!”
There can be an immense difference in skill level of people that call the onsite bookkeeper bookkeepers. Just as an trainee “chippie” and his manager with 30 years construction experience may both call themselves “contractors,” individuals representing themselves as bookkeepers can range between data entry clerks through to competent management accountants.
A professional bookkeeping firm must be accredited in the accounting software used by your company plus they should have qualified accountants to support their bookkeepers to empower them to give a management accounting level of service.
I hope that this gives you some thoughts of how using a professional bookkeeper can save your organization money.