What does outsourcing your bookkeeping do for your business?
One of the major causes of business failure is the lack of understanding of the financial information that is provided to the business owner and the lack of cash flow management.
Outsourcing your bookkeeping needs will not only have the potential of saving you up to 40 per cent in costs in comparison to hiring staff as employees, but will also assist in your understanding of the information that you are being provided with.
How does this work?
When undertaking the bookkeeping role in-house you may find that your staff get complacent and may not keep up to date on the latest legislative changes as they are not required to update their skills. Hiring a bookkeeper to undertake the work externally ensures that they are up to date as they are required to do so under the latest legislation, they are also required to be a member of a professional association which also ensures they are aware of the latest changes.
What type of savings could you then make?
The potential savings result from the following:
1. No need to purchase computer equipment and software.
2. No need to train and retrain staff.
3. No need to pay work cover,superannuation, sick and annual leave, public holidays.
So how does this assist your business? The bookkeeping functions of a small business can consume considerable time for the owners, outsourcing allows the business owners to concentrate on building their business with the knowledge that their bookkeeping functions are being undertaken in a professional, ethical and timely manner.
A good bookkeeper will provide you with information to assist you in making informed business decisions such as regular financial reports and cash flow reports. They will identify the areas in your business that may need some attention.
One of the requirements of the Australian taxation office means that all businesses are now required to keep adequate records. Calculating and lodging your Business activity statement forces this requirement. Your bookkeeper is trained in the area of record keeping and the preparation and lodgement of Business activity statements. As such the tasks are completed in a fraction of the time that it may take a business owner with no knowledge to undertake these tasks.
Your bookkeeper is trained in this area and can assist in the preparation and lodgement of all your Business activity requirements. The tasks that a bookkeeper will undertake in the normal course of business include:
? Recording and analysing your daily purchases and sales.
? Payroll and superannuation preparation and reporting.
? Preparation of financial reports
? Preparation of Year-end accounts for your accountant.
One of the major benefits of outsourcing for your business is that your bookkeeper will keep abreast of all the latest changes which means you do not need to. A Qualified Bookkeeper can provide you with information that will highlight any areas that require investigation and change and will ensure that those debts are collected on a regular basis. Amongst all the tools a business must have in order to survive and achieve success is information in regards to the financial situation of the company and statistics reveal it is often too late before the majority of businesses realise the importance of utilising this tool. Small and medium business owners may find they are not receiving the attention they need which can restrict their growth and competitiveness in their chosen industry when they are unable to make informed financial decisions.
Source: http://www.a1qualityarticles.com/business/management/the-benefits-of-outsourcing-your-bookkeeping/
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