Is your Bookkeeping messy?
If your bookkeeping is a mess it might not be all bad. Perhaps it’s a a sign that your business is growing and you just don’t have the time to keep up any more! If this is you, there are several options for business owners who find that their bookkeeping is in a mess.
Three options if your bookkeeping is a mess!
- Book out regular time in your calendar for bookkeeping: This option is for those who are competent at bookkeeping. Reconciling, invoicing and data entry on regular basis will help keep the books clean and functional. Ensure that the time you put in your calendar for bookkeeping is not double booked. Lock yourself away from distractions so you don’t get sidetracked by all the other tasks you need to get done.
- Hire an employee to do the bookkeeping: Having someone in the office solely focused on the bookkeeping will minimise errors and help stop key paperwork from going missing. However, for most small businesses the amount of time required to keep the accounts up to date does not require a full time employee so often businesses owners employ someone to do all the admin including the accounts. If you think this might be a good solution for you ensure that the person is appropriately qualified and experienced to do the books properly. While your prospective candidate might be the fastest typist in town and can can organise large scale functions at the drop of a hat just remember that it could prove very costly if your accountant has to clean up the mess they leave behind in the accounts, not the mention the meaningless information you will be basing your important planning decisions on.
- Outsource your bookkeeping to a specialist: This option is for the business owner who doesn’t require someone onsite all the time and doesn’t want to do the bookkeeping themselves. This can allow you more time to work on developing your business. With the use of modern online software and task specific apps you can collaborate with your outsourced bookkeeper if you want to stay involved. To keep costs down you could negotiate to divide the scope of work the be performed between you, the business owner and the bookkeeper. Make sure the person you select for this role has the appropriate qualifications and experience. Ask if they have any professional memberships and whether or not they are registered to complete your Business Activity Statements. A properly qualified and experienced bookkeeper may charge a higher hourly rate than a general office worker would but keep in mind that it costs less to get it right the first time rather than having to pay your accountant to fix up the mess later.
If business is booming but your bookkeeping is a mess, it might be time to revisit who does your bookkeeping and how it gets done. If you want some free advice on the next step for your bookkeeping, please call us today: 0388388726.