With the extra burden of BAS for small business owners, demand for bookkeeping has grown enormously, but there has been an influx of inexperienced practitioners offering their services.
So what are the benefits in hiring a professional bookkeeper?
Avoid costly DIY mistakes.
Many small business owners attempt to reduce costs by attempting to manage their books themselves. This can result in costly mistakes due to a lack of training, inappropriate education or lack of experience leading to the risk of high fines and penalties from the ATO or an accountant having to amend the books.
Common DIY mistakes include:
- Late lodgement of BAS and PAYG;
- Paying incorrect superannuation contributions;
- Invoicing incorrectly
- Incorrect GST coding usually resulting in under-claiming or over claiming GST credits;
- Failure to keep backup records.
An onsite bookkeeper gets to know your business.
As your business relationship develops with your bookkeeper, they will start to understand your business and the key performance indicators. So many businesses fall into the trap that when an in-house bookkeeper leaves taking their knowledge of the business with them. With an outsourced bookkeeping company you can be confident that the bookkeeping service will retain all the information about your business and keep good backup records with off-site storage facilities.
Reduced labour costs.
By outsourcing your booking services on a needs only basis rather than employing a full time bookkeeper, you only have to pay them when you use their services. Companies that do their own bookkeeping have higher labour, training and capital expenditure costs, all of which must be passed on to customers.