Imagine if your bookkeeping was handled by your accountant. Typically there is a long held belief that ‘Accountants are too expensive to be Bookkeepers’.
With technology advancements such as cloud based accounting, automation and custom apps, there are new options that challenge this belief. Most importantly giving the opportunity of better outcomes for business owners.
What is the role of a Bookkeeper?
The Bookkeeper’s role builds the financial records of the business. Essential records which are used by the business owner to make informed decisions.
Using platforms like XERO accounting software, we now have access to a powerful business tool, much more than an accounting system.
A proficient Bookkeeper with a strong accounting background is now able to implement and roll out reporting systems that keep management well informed at all times. ATO compliance has become significantly less stressful for all involved.
The role of the Bookkeeper has not disappeared of course. In fact the role of the Bookkeeper is more important than ever, and in our opinion is still generally underestimated.
Given the extreme time savings achieved with XERO, for businesses with the traditional in-house Bookkeeper arrangement, this crucial role is now extended beyond processing to include value add tasks that enhance the business.
So who is the best Bookkeeper for your business? An administrator with bookkeeping skills or a qualified Accountant?
Now we know at face value an administrator with bookkeeping skills is usually the cheaper option. However, this solution comes with pitfalls.
The value of the Bookkeepers role should never be taken lightly. An accurate and reliable set of financial records is imperative for business sustainability and performance.
Chartered Accountants love an accurate and reliable set of financial records because it enables us to advise the respective business owner on the direction of their business, and plan for growth accordingly. In addition, reliable financial records enable the business owner to meet their ATO obligations and tax plan effectively.
It is therefore vital that the Bookkeeper for your business is well qualified with an adequate understanding of accounting and tax, in order to achieve best results for the business.
In an ideal world, a proficient Bookkeeper with accounting skills will prepare the books in a state that requires simply tax adjustments at year end. This of course minimises the time required by the Accountant to finalise period end reports and tax returns.
On the other hand, Bookkeepers without an adequate accounting background potentially create double work for accountants. When Bookkeepers don’t have accounting and tax skills, there is an increased chance of error and most importantly opportunities that favour the business are missed.
Accounting costs increase when Accountants have to correct errors before they can apply their value add expertise.
Increasingly here at Minnik Chartered Accountants we have noticed the impact of an increase in “outsourced bookkeeping”, to overseas and local online bookkeepers with insufficient accounting and tax skills. The consequences being, the cheap options have led to increased costs to the business in the long run, as financial headaches and errors have needed to be cleaned up.
So how can you reduce your financial headaches?
As the founder of Minnik Financial as a Chartered Accountant, my vision is to bridge the gap between the ever important bookkeeping function and our client’s financial reporting, ATO lodgements, and business planning.
This is why bookkeeping is a key service that we provide.
Imagine being able to outsource your entire bookkeeping function to a team of qualified Chartered Accountants.
Consider the peace of mind in knowing that your books are being prepared accurately from the start to produce real time reliable financial information and reports on which to base your decisions.
No double work. No added stress. No unnecessary cost.
What has changed?
Due to the manual nature of bookkeeping, in the past accountants typically have not been able to justify providing bookkeeping services. These days however, thanks to XERO, Accountants are better placed to offer a highly efficient service around bookkeeping which is entirely affordable and cost effective for the client.
Cloud based software like XERO has undoubtedly increased business efficiency. With the introduction of amazing software like this it has changed the key roles that support a business to stay in business and succeed.
“Your Accountant is Your Bookkeeper” enables the business to keep its bookkeeping, tax and advisory all in one place, thereby eliminating the gap of error and confusion.
Bookkeepers were once a vital internal role typically a full or part time employee whose primary purpose was to manually record the financial transactions of a business. This included entering piles of supplier and customer invoices, and entering payments from a bank statement.
All this manual work meant excessive time and energy, a process that was subject to error, intensive costs, and outdated financial data.
The time and cost savings are incredible with XERO technology and its family of custom Apps. The business owner, their team, and their advisor can all access the accounting file in the cloud and work on it directly – from anywhere, at any time, over the internet.
The books are up to date in real time, which means the business owner can reflect on the performance and position of their business with the latest financial information. Talk about empowerment for making important business decisions.
Bookkeeping managed accurately by Chartered Accountants, from start to finish, at a third of the cost of an in house solution.
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If you are a business owner and you would like to learn more about how you can produce an accurate and reliable set of financial records for your business for maximum value and minimum cost, please contact us to request a free consultation.