Do you currently undertake your own bookkeeping in your business? Like most small business owners, as your business starts it makes logical sense to conduct these activities yourself. Cash saved on outsourcing means more capital to be put back into your business, right? The thing is, as time goes on and your business grows, it becomes necessary to take stock and assess if doing it yourself is really the most cost-effective decision.
Here are 5 signs it's time to consider outsourcing your bookkeeping:
1) You are losing track of record keeping
Let’s face it, being a small business owner isn’t easy at the best of times. When you're time poor, it becomes common to leave stuff like record keeping until it's absolutely necessary.
Bookkeepers are experts at keeping track of all your business information – so that you have time to attend to what matters.
2) Keeping the books up to date is taking away from other business duties
The time spent completing lodgements and accounts reconciliation is always easily justifiable as a business owner because it means you’re not paying someone else to do the work for you. Something that often isn’t thought about however, is that the time spent doing bookkeeping could be better spent earning your business money.
3) Your compliance work is beginning to get complex
PAYG, superannuation, business processes… Constant regulation changes and updated requirement must be adhered to. Have you heard about single touch payroll yet? (that's a doozy).
As your business grows, this can become increasingly difficult. A bookkeeper can cut through the industry jargon and ensure your business remains compliant with regulatory changes and updates as they happen.
4) You leave finding important information for lodgements until the last minute
At the end of each quarter do you find yourself scrambling to ensure all of the information you have is correct?
Business owners – at least most of the ones I know – often leave all their business transactions and record keeping until the very last minute. Incorrect lodgements or poor record keeping could cost you both immediately (with late lodgement fees), and in the long run with costs associated with needing someone to fix it.
Concerns about record keeping is a sure-fire sign you need a bookkeeper.
5) Your accountant is taking on some of your bookkeeping duties.
This seems like a good thing, getting your accountant to help without paying another individual. However - an accountant may be charging for more than what is needed when you are offloading some of the work onto them.
A dedicated bookkeeper differs from an accountant, and won’t hit the bank as hard for doing the same work.
These are just some things to keep in mind if you're currently undertaking your bookkeeping yourself. Want some more information on how you can take control of your bookkeeping in your business?
Get your free copy of our Bookkeeping Tips and Tricks guide below for 9 insights from the AFM team on how you can save money and time on your bookkeeping.