As most small business owners will know, keeping track of your books is one of the most important parts of maintaining the success of your business. You are required by law to keep accurate financial records, and failure to do so can lead to hefty fines and many headaches down the track.
The unfortunate reality is that many small business owners are not trained accountants or experts on Australian tax law. Even those with the best intentions can make simple mistakes that can end up costing them serious time and money.
For this reason, accounting roles are one of the most commonly outsourced services by small businesses. If you haven’t already, here are some of the top reasons why you should invest in professional bookkeeping services.
Help you prepare for tax season
Without proper bookkeeping procedures in place, tax season can be a stressful time for many small businesses. Failure to properly record your financial records can lead to penalties and increased pressure from the Australian Taxation Office to get your taxes in order.
Working with a bookkeeper will ensure that your business is well-prepared for tax time and has its financial affairs in order year-round. They can set up bookkeeping functions that accurately and reliably keep track of your finances and go about completing your tax return the right way.
While bookkeepers won’t be able to prepare your tax return for you, they can make sure that everything is in order when the time comes to do so. If you are looking for help with your tax return, an accountant will be able to provide you with this service.
Saves you money in the long run
Many small business owners avoid investing in bookkeeping services because they think it’s an unnecessary expense. However, their services have the potential to save you an enormous amount of money in the long run, which will far outweigh their salary or fee.
Bookkeepers can help reduce your risk of an audit, tax penalties, cash-flow problems, late payments and more. This will prevent you from wasting money on avoidable errors and be able to instead use your money to grow and expand your business.
Track profit and growth
Without proper bookkeeping, you run the risk of running your business blindly. Proper financial records help you to keep track of your profits and the growth of your business.
This will enable you to identify its strengths and weaknesses and figure out how to operate moving forward. If you’re able to quickly make note of any practices that are losing you money and cutting into your profits, you can avoid them doing any substantial damage to your business and potentially save thousands.
Allows you to focus on the day-to-day
Focusing all your energy on bookkeeping and tax requirements can distract you from the day-to-day of your business. There’s a reason that this business is yours, and it deserves your focus and passion.
Allow yourself to fully commit to your staff, your clients and the wellbeing of your business by hiring a professional bookkeeper. This way, you can leave the books to the experts and focus on the continued growth and improvement of your business.
Manage employee payments
A reliable bookkeeping system will help you to pay your employees accurately and on time every pay cycle. This will also help you to avoid underpaying, overpaying and other headaches that can come with employee payments.
Your bookkeeper will make sure that all payroll services are in line with Australian regulations and legislations, and consistently remain secure and up-to-date.
Keep investors informed
Having concise, up-to-date and informative financial records can improve your relationship with current and potential future investors. These records will give them a clear overview of how your business is performing and demonstrate to them your success and money-making potential.
It can also improve your standing with the bank, as they’ll be more likely to provide you with low-interest loans if you’re able to provide them with reliable financial records and a clear pattern of growth. Working with a bookkeeper can bring outstanding results to your business, and greatly improve its financial standing. The best thing you can do is allow yourself to focus on giving your business the attention it deserves to take it to the next level and continue its growth.