There are too many people who think bookkeeping is just data entry and figure calling themselves a bookkeeper is an easy way to make a quick buck. The reality is that bookkeeping is much more than this. A bookkeeper should have a good understanding of your business and daily needs. You need someone who can bring experience from their work in the past. Someone willing to become an invaluable working partner for your business.
Your bookkeeper is the keeper of your finances, compliance and tax office reporting. They need to meet company policies as well as local government regulations. You want them to become an important part of your business. Bookkeepers analyse, interpret and code your transactions for compliance with reporting requirements.
When a bookkeeper does a good job, it makes life easy. You can make wise financial decisions as you have an accurate picture of the health of your finances. They can even provide good advice based on the state of your books. But when a bookkeeper fails to complete your books on time or makes mistakes, this can be disastrous for your business.
A good bookkeeper is aware of the principle ‘garbage in, garbage out’. Something that a cheap bookkeeper who only does data entry may not understand or, even know about. You may not provide adequate or correct information at times so need someone working with you who knows when something is not right. Someone who can analyse the situation and knows what questions to ask you to get the information they need. A bookkeeper who ensures your financial records and transactions are always correct.
Australian Tax Office Reporting
Cheap bookkeepers who only do data entry may not have a clue about anything else and may not know the complexities for creating Business and Income Activity Statements. This is not a good thing as these are time consuming and you cannot afford for someone to make mistakes. This can bring trouble with the tax office and cost you more in time, money, worry and stress.
Then there are Taxable Payments Annual Reports which is affecting more and more businesses. These are to report the total payments made to contractors for their services. Someone who can only do data entry cannot complete these with accuracy.
You may make Pay as you go (PAYG) instalments to the tax office towards your annual tax burden. So, you need someone who understands the system to keep an accurate account of PAYG summaries throughout the year.
It is unwise to leave tax office reporting and payments to someone who can only do data entry. These take complex calculations and someone who knows exactly what they are doing. The last thing you need is for your business to fail compliance. This can get you in trouble or behind in payments with the tax office.
When small business owners and solo operators take on bookkeeping themselves, this can be a poor use of time. Hiring a cheap bookkeeper who may only be a data entry monkey can be a disaster. You need an experienced bookkeeper to keep your financials in line to give you peace of mind.
Alexilum is a registered BAS Agent, Xero Silver Partner & Certified, MYOB Partner & Quickbooks Certified – We have the experience to take care of your bookkeeping needs from Brisbane to anywhere in Australia. Contact Us Now to find out more.