How to Clean Up Messy Financial Books [Bookkeeping Clean-Up Checklist]

Bookkeeping is an important part of any small business. It helps you keep track of your finances, which is key to staying on top of your cash flow. It also prevents you from making costly errors down the road. That being said, it’s inevitable for things to get messy from time to time.

There are several reasons why your financial books might get messy. If you run a small business that requires more reporting, you will have messy financial books. As your business grows and requires more money, it’s easy to let your financial books fall to the wayside. 

Having messy financial books can be frustrating. It makes you feel that you’re missing something and will never figure out where your money is going. When faced with a messy financial books situation, you should look at your bookkeeping system. A bookkeeping clean-up checklist contains a list of tasks you need to complete to clean your messy financial books. 

Bookkeeping Cleanup Checklist

If you’re consistently making poor financial decisions, it could be a sign that you need to clean your financial books and make some major changes. A bookkeeping clean-up checklist serves as a roadmap, guiding you through the process of cleaning your books. Here are a few tips to help you clean up your accounting records. 

Identify the Problems in Your Books

To figure out where your money is going, you need to track your transactions. This is a good way to identify inefficiencies in your financial books. For example, if you consistently overpay employees, you could be losing money due to payroll taxes.

A detailed look at your financial books helps you identify the problems, such as a lack of details in your records. It also helps you identify any issues that may be causing your financial books to be messy. Some of the potential accounting mistakes include:

  • Miscoding transactions
  • Mixing personal and business accounts
  • Misplacing financial records
  • Forgetting important tax details

Separate Your Personal and Business Accounts

Separating your personal and business accounts helps you track your transactions separate from your business transactions. It prevents you from making financial decisions based on your emotions and forces you to take a step back and ask yourself if the purchase is really necessary.

Separating your personal and business accounts makes it easy to keep track of your expenses for tax purposes. Keep track of expenses on your business account, separating office expenditures from operational and inventory expenses. Keep all your receipts safe as they help your bookkeeper have a comprehensive collection of all business transactions, saving you time and stress.  

In addition, keeping your personal and business transactions separate improves your financial security. It prevents instances where you use your personal finances on your business, putting you on a financial gamble. 

Signing personal guarantees for leases and loans for your business is a good idea when your business is young and hasn’t established a strong credit rating. However, you should avoid personal guarantees and build strong credit to give lenders confidence that your business can pay the debts. 

Track Every Transaction

The first step in cleaning up your books is identifying where the problems are. Are you consistently overspending? Are you making impulsive purchases without having a plan for how you’ll pay for them? Are you buying on credit, which is only making things worse?

You should list every transaction that occurred in the past year. If you’re having trouble remembering, make a note of the due date for each transaction. Doing this helps keep track of your cash flow.

Reconcile Your Business Books

Another important step in cleaning up your books is reconciling your business books. The process involves matching your bank statements and other records with your financial books. Reconciling your books helps you identify where the errors are. 

Reconciling your books with your bank statements helps you identify and correct the errors in cash transactions that you might have missed in your books. In addition, it ensures whether or not you have done everything right by matching the bank records by analyzing the cash in your bank account. Reconciling your business books:

  • Prevents slow transaction
  • Prevents the risk of typographic errors which might occur during typing
  • Deals with ambiguities of the first stages of starting any business 

Go Paperless with Bookkeeping Software

Bookkeeping software can save you time and help you stay organized. It can also help you find mistakes and inconsistencies in your accounting data, which can help you make better business decisions. It’s also a good way to keep track of taxes, which can be complicated without the right software. In addition, the software can also help you manage your finances better, which can help you save money and invest better over the long term.

Standardize Your Processes and Reporting

Standardizing your financial processes and reporting catches missed risks and opportunities and increases cash flow. When done right, standardizing and reporting your bookkeeping processes helps you understand where your business stands financially. You can use this information to allocate resources more effectively and make informed decisions. 

In addition, standardizing and reporting your processes avoids the headache of trying to keep up with where you are in your recordkeeping, which can save you time and energy. 

Outsource Your Bookkeeping If You Need Help

If you are not sure how to do the bookkeeping yourself or need help with bookkeeping, you should consider outsourcing. Outsourcing your bookkeeping is simple and helps keep your financial books clean, reducing your tax burden.

A professional bookkeeper knows how to clean your financial books, eliminating all the mess you might have made when personally running your business. To get help with your bookkeeping services, read our guide to finding the best bookkeeping service.

Final Thoughts

Your bookkeeping is a crucial part of your business. It tells you where your money is coming from and where it is going. A good bookkeeping system will also help you avoid mistakes or regulatory issues, and can give you better financial insights to drive better decision making.

But while your bookkeeping is a key element of your business, it’s often the most neglected. Many small business owners only record their transactions when they happen, which means they don’t have a clear picture of where their money is coming from and going. 

Follow the above bookkeeping cleanup checklist to keep your financial books in order. If you need help, reach out to Visory and get started today.

How Virtual Bookkeepers Benefit Your Business

If you’ve hired the services of a bookkeeper, you’ve likely come to appreciate the value they bring to your business. From staying on top of financial paperwork in time for the tax period, bookkeepers are now applying analytical and strategic skills to elevate businesses.

Bookkeepers are also moving away from working from an office you’ve allocated to them to virtually working with different types of clients from remote locations. Hiring a virtual bookkeeper is one of the best ways to allow your business to optimise its resources while ensuring you have control over your finances.

What Are Virtual Bookkeepers? 

Virtual bookkeepers help manage your bookkeeping needs online or remotely, usually via cloud-based software. They work on flexible schedules where they choose their hours and where to work.

Thanks to technology, a virtual bookkeeper can help you meet your KPIs, as would an on-site bookkeeper. They can use QuickBooks or Xero to do the actual bookkeeping. There is also Zoom for meetings and consultations with clients and Google Docs for managing files.

You can choose to work with a virtual bookkeeping service or a freelancer, as long as they meet your bookkeeping needs. However, a bookkeeping service is far more efficient as you’ll have a team of professionals who have access to valuable software and platforms to track and update you on your finances.

Why Use Virtual Bookkeepers? 

You may already have a glimpse of what it’s like to work with a virtual bookkeeper if you’ve ever had to exchange calls and emails with your accountant or bookkeeper about daily transactions or payroll. However, if you’re still not sold on the idea of opting for a virtual bookkeeper, here are 4 reasons to help you make an informed decision.

1. Save Time and Money 

A full-time on-site bookkeeper won’t save you as much time and money as a virtual bookkeeper. When hiring a permanent employee, you have to consider the salary, insurance, paid time off as well as equipment and working space. Outsourcing a bookkeeper would be less expensive, as you pay for just the services while they sort out how they can help you. 

You also don’t have to spend so much time hiring and training a virtual bookkeeper. They already have established processes and have readily workable solutions to handle your bookkeeping needs. Since they are not limited to a physical location, it’s easy to access and communicate with them through any platform about the pressing needs of your business. In the end, you can allocate more time and resources to other value-adding functions in your firm.

2. Minimise Your Tax Liability 

Most virtual bookkeepers use cloud-based software, which enables them to quickly update and organise your receipts, payments, and bank statements before the tax deadline. This way, you can reduce your tax liability since you can claim the business deductions you’re entitled to.

3. Minimise Errors in Your Books 

Virtual bookkeepers are usually focused on delivering real-time and accurate reporting to their clients. Through the use of accounting software, they can quickly retrieve your profit and loss statement to check for misreported expense items or missing income. Overall, due to automation, you will always have a quick turnaround with your transaction management and reconciliations, leading to error-free financial reporting.

4. Improve Your Financial Reports 

Well-prepared financial reports will give you a true picture of how your business is doing. A virtual bookkeeper will objectively and competently manage your books by consistently monitoring day-to-day transactions and reconciling accounts. This means you can prepare your payroll and tax filing on time as they work hand in hand with you and regularly communicate via email or phone with ease. If you want a deeper understanding of a financial item, a virtual bookkeeper can generate customised reports as they are in sync with your accounting systems.

How a Virtual Bookkeeper Can Help Your Business 

A virtual bookkeeper elevates their key role as the lifeline of your business by being much more flexible, cost-effective, and having a more sophisticated oversight over the running of your business.

More and more companies in Australia have been outsourcing functions such as customer service and IT at a rate of 0.7% annually between the period of 2016 and 2021. It’s safe to assume the reasoning behind this is achieving cost efficiency to gain leverage. When you outsource a virtual bookkeeper, you not only avoid the costs of maintaining a full-time employee, but also access top talent in the market. You only have to assess them for factors such as their industry experience, skills, and their professional attitude. The best virtual bookkeeper will help your business scale as they come in to find quick solutions that go with the times.

Most virtual bookkeepers can work with any business, regardless of size. They can be an invaluable and affordable resource for small and medium-sized businesses, which are vulnerable to cash flow issues. While the bookkeeper handles the time-consuming but important financial and administrative tasks, the owners can dedicate their attention to other critical business deliverables.

Another upside of virtual bookkeepers is how they largely integrate technology into their work. This aligns with an increasingly technologically savvy business world and the labour force. Virtual bookkeeping services, for instance, won’t lack the technological infrastructure, which can be a huge capital undertaking for a business to handle the accounting, communication, sharing, and management of work from a remote location.

Final Thoughts 

There’s no doubt a virtual bookkeeper will bring you better value for your money as they handle paperwork and taxes with the help of automation. And with more bookkeeping services rising and offering a variety of services, you have the chance to choose the right team according to your budget. What remains is to try to strike a balance in your working relationship, so you can both work in alignment as your business keeps evolving.

At Visory, we offer personalised bookkeeping services to our clients. We’ve invested in the best software to ensure you get your financial reports in a timely and accurate manner. Get started today to learn more about Visory’s bookkeeping services.

How Do Independent Bookkeeping Services Work?

Bookkeeping as a service is the new way to develop and maintain your business’ financial processes and management, at a fraction of the cost. Gone are the days when businesses had to hire an in-house accountant or bookkeeper and incur ongoing expenses like training and upkeep.

Today, outsourcing all aspects of your bookkeeping services to an independent professional is the new norm. It’s more cost-efficient, reliable, and scalable, meaning you get more time and resources to focus on growing your business.

But how do independent bookkeeping services actually work? This article will explain it all to you!

What Do Independent Bookkeepers Do?

An independent bookkeeper is not part of any accounting firm; instead, they’re self-standing professionals who offer their services to small businesses and startups. As such, they have no affiliation with any other businesses, so they can keep their clients’ information confidential.

The main job of an independent bookkeeper is to prepare financial statements and reports for your business. These include balance sheets, income statements, cash flow statements, and other documents that detail your business’ financial performance over time. An independent bookkeeper can also prepare your statements and documents so you’re ready when it’s time to lodge your taxes.

An independent bookkeeper must have specific qualifications before taking on this responsibility. For example, the bookkeeper must possess good communication skills, strong math skills, and excellent organisational abilities. They must also have experience working with small businesses and understanding the nuances of running one.

Benefits of Outsourcing to an Independent Bookkeeper

There are many benefits to hiring independent bookkeepers. Here are just a few:

  • Save Money – Outsourcing your accounting functions means that you won’t have to spend thousands of dollars each year on payroll costs. Instead, you can focus your efforts on growing your business instead of worrying about paying employees.
  • Get Better Quality Service – When you hire an independent bookkeeper, you’ll be working directly with someone who has been trained in accounting and finance. Thus, you’ll receive better quality service than if you were to hire a traditional employee.
  • Gain Peace of Mind – An experienced bookkeeper knows what is required to produce accurate financial reports. They understand accounting procedures’ rules and regulations and will help keep your business compliant.
  • Increase Efficiency – By outsourcing your accounting functions, you’ll be able to save time and money and use the savings to grow your business.
  • Reduce Stress – You don’t have to worry about whether your books are being prepared correctly. A good bookkeeper can handle this vital aspect of your finances.
  • Improve Your Business’s Image – One of the ways people often measure business success is by how well their financial statements look. An independent bookkeeper will ensure that your books are prepared accurately and professionally.
  • Benefit from Expert Advice. Because an independent bookkeeper isn’t bound by any type of contract, they can provide valuable insight into areas of your business that you may not know anything about.

How Do Bookkeeping Services Work?

Bookkeepers work for a variety of clients. Some businesses hire them to handle their entire accounting needs, while others only use them for specific projects. Either way, there are four basic ways that bookkeeping services work:

1) Full Service – If you want to outsource your entire accounting function, consider using a full-service bookkeeper. Their job includes preparing financial reports for you, including profit and loss statements, balance sheets, cash flow statements, etc. They may also offer payroll processing, tax preparation, and business reporting services.

2) Partial Service – If you only need help with some of the more complicated aspects of your accounting, such as preparing quarterly tax returns or creating monthly budget projections, you should consider hiring a partial service provider.

3) Contract – If you just need occasional assistance with your accounting, you should consider contracting with an independent contractor. These individuals usually charge hourly rates based on the number of hours worked.

4) Project-Based – If you just need a bookkeeper to complete a few specific projects, such as preparing monthly sales reports, you should consider using a project-based bookkeeper. This type of bookkeeper works on a per-project basis. For example, they might prepare a report for you once every two months.

How Do Independent Bookkeeping Services Charge Clients?

As we hinted earlier, independent bookkeepers are usually more affordable than hiring someone in-house. Most bookkeepers charge clients either a flat fee or an hourly rate. Here are some examples of these fees:

  • Flat Fee – Flat fee pricing means that the cost of the service is determined at the beginning of the relationship. It does not change during the engagement.
  • Hourly Rate – Hourly rate pricing means that the client pays for each hour worked.

Here are some other factors that affect the price of bookkeeping services:

  • The size of the business – The larger the organization, the higher the costs associated with running it.
  • The complexity of the accounting task – More complex tasks require more extended periods to complete.
  • The number of people involved in the process – A large team requires more time and resources to manage.
  • The level of expertise required – Tasks requiring more advanced skills or expertise will typically cost more.

For more information about Visory’s pricing, visit our pricing page

Using Professional Bookkeeping Services

If you’re in the market for professional bookkeeping services, here are a few things you can expect from a reliable bookkeeper like Visory:

  • Regular Reporting – We can provide regular updates regarding your finances, so you always know what’s going on.
  • Account Reconciliation – When we receive your books, we’ll handle reconciling them against your bank statement, credit card statements, and any other source documents you send us.
  • Tax Preparation – We can assist with filing your taxes on time and accurately.
  • Budgeting & Forecasting – We can create budgets and forecasts, so you have a clear picture of where your business is headed.
  • Payroll Processing – We can handle all of your employee payments, including direct deposit and withholding.
  • Accounts Payable and Receivable – We assist in keeping track of outstanding invoices and accounts payable.

We’re happy to answer any questions you may have about how professional bookkeeping services work. Click here to get started with Visory!

10 Bookkeeping Tips for Startups

When launching a new business, bookkeeping might not be the first thing that comes to mind. Your priority is probably finding clients and focusing on your business’ success. However, bookkeeping is foundational to the success and financial health of your startup. Having your books in order and detailed financial statements can help you make more informed decisions for your business.

So, where should you start? Read along for ten tips on bookkeeping for startups. 

Do Startups Need Bookkeepers?

Bookkeeping is essential to every business’ success. However, as a startup, you may have an additional need to maintain accurate financial records. Your investors will often request you to provide the records. Plus, your chances of qualifying for a business loan will increase when you offer precise and accurate financials to your lenders. 

Here is why you need to hire a bookkeeper:

Accurate and Reliable Numbers

Bookkeepers record and maintain accurate and reliable financial numbers. With these figures, it will be easier to make well-informed decisions about where to invest your money, how to acquire new clients, access financing, and grow your business. 

Monitor Cash Flow 

Bookkeepers have the expertise and experience to track revenue and costs and ensure that your startup doesn’t face any cash-flow problems. They can also discover ways of reducing your business expenses.

Tax Preparation 

Bookkeepers work alongside accountants to ensure that all your financial records are ready for tax season.

Professional advice  

It’s advisable to consider a second opinion before making major business decisions, especially for new business owners, your bookkeeping team comes in handy when you need professional advice. 

Save Time for Other Essential Duties

Tasks like financial monitoring and account reconciliation can consume a lot of hours that you can otherwise spend on growing a successful startup. Therefore, it would be best to let professionals handle these tasks.

 It’s also essential to maintain a healthy work-life balance. 

Top 10 Bookkeeping Tips for Startups

As a business founder, you must learn to incorporate bookkeeping into your startup. Early-stage financial reporting will save your business unnecessary expenses, set you up for tax benefits and ensure that you make informed investment decisions, among other benefits to your bottom line. Below are essential bookkeeping tips for startups:

1. Select an Accounting Method for Your Business

 There are two possible accounting methods; cash and accrual basis accounting. 

Accrual Basis Accounting

This method involves recording revenue earned before you receive payments for the services or goods sold and recording expenses incurred before you pay for them. 

For example, if you sign a contract with a new client, you will highlight the money earned in your accounting books regardless of whether you have received payments. 

While this method is a bit complex, it helps you track your business income and expenses more accurately, this is particularly beneficial when making scaling decisions and updating your investors. 

Cash Basis Accounting 

This simple method involves recording income when you receive the money and expenses when you make the actual payments. 

2. Stay on Top of Your Financial Records

What type of records do you need to keep? Everything. Follow up on all documents that show your business revenue, credits, deductions and expenses. These documents include invoices, receipts, bills, proof of payment, bank statements, and all other relevant records.  

3. Use a Bookkeeping Software 

Automating your bookkeeping process with software can be a lifesaver for startups. It eliminates manual calculations and spreadsheets and saves you time for other essential business tasks. 

Ensure that you choose software that works with your accounting method and suits all your business needs. Also, consider factors like security, storage and accessibility. 

4. Outsource Your Bookkeeping 

While accounting software may streamline the bookkeeping process and make things easier, it’s still necessary to work with a professional bookkeeper. 

Outsourcing offers various benefits, including saving time and ensuring that you maintain up to date and organised financial records.

Most bookkeeping service providers like Visory will integrate with your bookkeeping software so that all entries are added automatically.

5. Identify the Most Important Financial Metrics and Key Performance Indicators (KPIs)

Financial KPIs are metrics that you can use to measure your business profits, expenses and revenue, among other financial outcomes. With this accounting data, it will be easier to analyse the financial health of your business. They include net profit margin, gross profit, margin, current ratio, quick ratio, accounts receivables, inventory turnover, return on equity, earnings per share, price to earnings ratio and much more. 

Identify metrics and KPIs relevant to your startup and include them in your accounting books.  

6. Use a Payroll System That Works With Your Accounting Software

The main goal of using accounting software is to reduce the amount of work needed. A payroll system should offer similar benefits; save your time and let you focus on growing your business. Therefore, you should choose a payroll system that integrates with your accounting software for  streamlined payroll processing. 

7. Maintain Current and Accurate Cash Flow Statements

Tracking the flow of cash and cash equivalents into and out of your business is essential. Therefore, it would be best to keep accurate and updated cash flow statements to analyse how your business generates income, funds expenses and pays debts. 

The three major types of cash flows that you should include in your books include:

  • Cash flow from financing activities
  • Cash flow for investing activities 
  • Cash flow for operating activities 

8. Make Accepting Payments Easier With a Payment Collection System

Nothing will make your work easier and enhance business success more than establishing a payment collection system. This system will manage your accounts receivable billing and collect money from your customers.  

For an efficient process, first, establish payment methods like cheques, online payment methods, cash, credit, and debit cards, then set rules for accepting and handling the payments. 

Setting up a payment collection system can help your business maintain a healthy cash flow.

9. Minimise Discrepancies With Regular Bank Reconciliation

Bank account reconciliation is an integral part of bookkeeping. Ensure all your records balance; the amount of money you withdraw from your business account should equal the amount spent. 

Regular bank reconciliation is critical, especially for funded businesses. Your current and potential investors expect accurate accounting and financials. 

10. Establish an Expense Policy

As an early-stage business, you need to track and manage your expenses. Without a clear expense policy, your team members may spend money without considering factors like acceptable expenses, budget and expense limits. 

Establishing an expense policy for your startup is vital in giving guidelines on using business money appropriately. As a result, you will eliminate unnecessary spending and create a positive culture. 

Conclusion 

It’s tempting to let bookkeeping take a backseat when growing your new business. However, if you want to run a profitable business, you must keep your financial records on top of your priorities. Follow the bookkeeping tips for startups above to avoid tax and cash flow issues and increase your chances for growth. 

Looking for a bookkeeping service provider? Learn more about Visory’s bookkeeping services for growing businesses.

How Bookkeeping and Accounting Services Help Small Businesses

All businesses, including startups and small-scale businesses, require a bookkeeper and an accountant. Besides managing your business’s day-to-day finances, these professionals help you track cash flow and improve your businesses’ financial health. Read along for more information on bookkeeping and accounting services for small businesses. 

What Can Bookkeepers and Accountants Do for a Small Business? 

What are bookkeepers’ duties? What do accountants do? Like most small business owners, you probably find it tricky to differentiate between accounting and bookkeeping. Yet you need to allocate your limited resources and assign duties wisely.

While both bookkeepers and accountants track and manage your finances to streamline your tax reporting process, there are still some significant differences between the two. 

Typically, bookkeepers are responsible for your business’ day-to-day record keeping. This can include recording transactions, maintaining a balance sheet, processing payroll, generating invoices, and merging accounts.

On the other hand, accountants analyse and process the data the bookkeepers put together. Accountants can use this data to create more complex financial reports or lodge the business’ taxes.

An accountant and bookkeeper can work side by side for a streamlined accounting process. For instance, when the bookkeeper records your financial details, the accountant counter checks the data and eliminates mistakes. Simply put, having both professionals ensures that your business remains compliant with tax requirements, offers a reliable cross-checking system, and strengthens your company’s financial picture. 

How to Choose the Best Bookkeeping Service

Bookkeeping services are an integral part of every business. Bookkeepers can either break or make your organisation. Choosing the right professionals for this crucial role is vital. 

So, what should you consider when looking to hire the best bookkeeping service? 

Which Accounting Method Does Your Business Use? 

There are numerous bookkeepers within Australia. However, not all of them have the expertise and experience to handle your business’s financial needs. In this case, when looking for a service, you need to consider your business’s unique bookkeeping needs, including the accounting method that you use. 

Does the Bookkeeping Service Work With Your Accounting Software?

When blended with bookkeeping expertise and experience, technology helps to generate better financial insights. You need to evaluate the technology expertise of the bookkeeping firm. 

If your business already uses specific accounting software, confirm that the bookkeepers have relevant experience in the same software. 

Does the Bookkeeping Service Have Experience in Your Industry?

Hiring bookkeeping services involves bringing the right team to the table. In addition to expertise, the bookkeepers should have experience in your specific industry. Remember, bookkeeping, and accounting mistakes can cost your business big time. Don’t try to cut corners when choosing bookkeeping services for your company. 

Why Is Bookkeeping Important for Your Small Businesses?

Bookkeeping can be the difference between a business’ financial health and bankruptcy. Every small business needs this service to maintain accurate financial records. Generally, bookkeeping allows businesses to organise, keep, and analyse financial data to determine their financial health. 

By now, you understand that basic accounting and bookkeeping for small businesses is key in managing finances. Check out reasons why you should invest in bookkeeping services. 

You’ll Be More Prepared to Lodge Your Taxes

Business tax filing can be time-consuming, challenging, and stressful for business owners, particularly those without an accounting background. Fortunately, bookkeepers prepare all necessary documents and keep accurate records throughout the financial year. 

Without proper bookkeeping, it can be impossible to file an accurate tax return, meaning you might overpay the government, which could cause financial problems in your business. On the other hand, underpays can result in heavy fines and payments with high interests.

Besides filling your tax returns, the tax laws require you to keep accurate business records that the Australian Tax Office (ATO) can use in the event of an audit. However, only a tiny percentage of small businesses are audited. 

Appropriate bookkeeping offers relevant justification if the ATO wishes to look at your business financial records. You can answer all questions regarding profits, costs, losses, tax returns and tax deductions. 

Save Time to Focus on Your Business

Every choice a business owner makes has an opportunity cost that can either be the opportunities you won’t take advantage of or duties that you won’t handle. Meaning before settling for DIY bookkeeping, you should consider the cost of spending a percentage of your time on financial books. Remember, “time is money.”

Every minute you spend creating ledgers, preparing invoices, reconciling your accounts and other bookkeepers’ duties, you will be missing out on a chance to focus on other essential aspects of your business. 

While bookkeeping is an integral part of running a successful business, it might not bring in new clients, improve your products, or directly boost business growth. 

Luckily, you can hire a bookkeeper to manage your books, while you direct your time and efforts to growing and expanding your business. 

Bookkeepers Can Identify Opportunities for Minimising Expenses

Tracking your business expenses and earnings is critical. Bookkeepers and accountants can quickly examine your costs and adjust your budget when necessary. 

But how? They identify the services and products that boost your profits and pick out unnecessary investments for your business. For instance, some forms of marketing like newspaper advertising were previously a crucial part of small business marketing strategy- however, in today’s business environment, the investment might not be worthwhile. Therefore, you can lower your marketing budget and direct the finances to other areas. 

Bookkeepers can help you analyse how things unfolded during your current year and make informed decisions when drawing up your next year’s budget.

Keep All of Your Financial Records Organised

Like most business owners, you are a pro in your profession, but you probably don’t know much about bookkeeping. While you might be financially savvy with some knowledge of QuickBooks and Excel, your level of expertise is incomparable to a professional bookkeeper’s knowledge.

Bookkeepers know and constantly learn new ways and processes for maintaining organised financial records. In addition, you may have a lot of duties that require your attention. With so much to handle, it’s easy to ignore some details here and there when managing your records. Unfortunately, in bookkeeping, a minor mistake can be costly. 

Bookkeeping and accounting services ensure that you keep accurate and organised financial books and eliminate the likelihood of mistakes. 

Conclusion

You might argue that an in-house bookkeeper can offer all the benefits discussed above. However, having a full-time in-house bookkeeper or accountant could cost you more than hiring a third-party service. 

Bookkeeping firms can charge fixed prices for a combination of services or a specific service; others offer monthly subscriptions, while others charge by the hour. You can choose the price point that best suits your businesses’s needs and bookkeeping and accounting service budget. 

The importance of bookkeeping and accounting services for small businesses cannot be overstated. Learn about Visory’s Bookkeeping Services.

Why SMEs Should Use an Outsourced Bookkeeping Service

The last few years have been tough for small businesses in Australia and New Zealand. One study found that 63% of small businesses in Australia report being negatively affected by COVID-19. In New Zealand, 43% of small businesses said they either had used or planned to use government wage subsidies to survive. When times are uncertain and cash flow is less reliable, it’s more important than ever to stay on top of bookkeeping to grow your business

Asking a small business owner to manage their general ledger and strategise their recovery order is a tall order. If you’re running a small- to medium-size enterprise (SME),  outsourced bookkeeping service help can keep you on track. Organise your financial data and create better systems with the help of an outsourced bookkeeping team.

What Does an Outsourced Bookkeeping Service Do for SMEs?

You may be hesitant to outsource your bookkeeping service because you don’t know what an off-site expert can really do for you. Well, a lot. A qualified off-site team will become an invaluable asset. Not only can an outsourced bookkeeper handle your day-to-day bookkeeping needs, but they can provide valuable insights to drive decision making for your business.

An outsourced  bookkeeping service can free up time in your back office by tackling:

  • Bills and payments. Your bookkeeper handles accounts payable to make sure your supplier invoices are paid in a timely manner. 
  • Invoices. Your outsourced bookkeeper can also make sure you get paid, keeping up on accounts receivable, so you don’t wind up with bad debts.
  • Payroll. Your staff will always be paid on time when you have an outsourced helper streamlining your payroll. 
  • Budgeting. Are you spending too much on one area of your overheads? Let a bookkeeping expert get outside eyes on your budget. 
  • Forecasting. Once an outsourced bookkeeping service becomes familiar with your business, they can provide important forecasting information to help you plan for the future. 
  • Customer analysis. Be honest, do you know exactly who your customers are? Talented bookkeepers also know how to analyse where your biggest sales are coming from. 
  • Generate financial statements. Quarterly reports are time consuming but essential. Outsourcing your financial reporting needs means accessing important profit and loss statements, etc., without having to put them together yourself. 
  • Ongoing reconciliation. Reconciling your accounts and key balance sheet items, as part of delivering ongoing reporting and insights, can easily be handled by an experienced bookkeeper as matter of routine 
  • Prepare for tax season. You don’t want to be caught in penalties after lodging a tax return. Professional help gives you peace of mind at the end of the fiscal year. 

A bookkeeper sits at his desk and looks over his client's financials.

How an outsourced bookkeeping service can help your SME

Outsourcing your books gives you both a macro view and financial health check and helps you take some of the more micro minutiae off your plate. 

If you outsource the bookkeeping of your small to medium organisation, you can expect:

  • Saved time. Some parts of bookkeeping are time-consuming. When it comes to data entry and report running, shortcuts may lead to mistakes. Your back office has time for other matters when your reports are streamlined by outsourced assistance. 
  • An objective view. You may be too close to your business to admit when one part of it isn’t working anymore. An outsourced bookkeeper may serve as a reality check by offering a new set of eyes. 
  • Access to expertise. A company like Visory can match you with a bookkeeping team that knows your industry inside and out. As you grow, having an expert handling your reports may be more helpful than a general bookkeeper. 
  • Saved money. You may also save money on staffing when you outsource bookkeeping. You can reinvest those funds into research and development, marketing, and other aspects of your company. 
  • Better understanding of cash flow. With an in-depth analysis of your spending, you may be able to better manage your cash flow and stay in the black at the end of each month. 
  • Detailed forecasting. Bookkeeping is more than just knowing what’s in your bank account; it’s also about keeping it full. Bookkeepers who are embedded in your business, even remotely, can update you regularly on your financial health. 

When Is It Time to Outsource Your Small Business’ Bookkeeping?

If your small business is growing quickly, your bookkeeping needs are likely to be scaling quickly as well. These are a few signs that your business would benefit greatly from an outsourced service taking over your bookkeeping needs:

  • Your bookkeeping and financial recordkeeping is taking more time than you can afford
  • Your books are always out of date and in need of catching up
  • Your business isn’t taking full advantage of potential tax write-offs
  • You are struggling with tracking your cash flow
  • Your accounts receivable and payable processes aren’t running smoothly

This is by no means an exhaustive list of signs that your business could benefit from using a bookkeeping service. Visory’s team helps businesses at all stages streamline their processes so you can stay focused on growing your business.

Learn More: 6 Signs You Need to Upgrade Your Business Bookkeeping

Outsourced bookkeeping keeps robust financial reporting affordable and reliable. Visory can match you with an expert who understands your industry and grants you 24/7 access to your double-entry bookkeeping, tax records, and more. Keeping your SME nimble for whatever comes its way is a lot easier with a financial expert on your side. 

How a Bookkeeping Service Can Help Your Retail Business

Bookkeeping for retail business involves keeping a record of all your daily financial transactions within an organised accounting system. Maintaining precise records of your expenses, sales, receivables, inventory, and payables ensures that you create accurate financial reports and assess your business performance. Detailed and authentic records are also handy in case of a tax audit.

Before you initiate the bookkeeping process, you must identify the best booking system for your business and decide whether to invest in in-house bookkeeping or outsource the services. 

What Does a Store Bookkeeper Do?

A store bookkeeper records and maintains a business’s financial transactions, including sales revenue, expenses, invoices, payments, and purchases. Their responsibilities mainly involve using numbers, math skills, and accounting principles.

 Typically, bookkeepers handle the initial steps of the accounting cycle, which include:

  • Identifying transactions
  • Recording transactions in a journal 
  • Posting to the general ledger
  • Calculating the total balance for the accounts
  • Looking for errors and adjusting worksheet 
  • Adjusting entries 

Financial reporting requires maximum accuracy and one way of ensuring precision is by communicating with colleagues and clients. Bookkeepers collect purchase and sales documents from coworkers and handle other tasks that require them to engage with other parties. 

Proper communication ensures correct documentation of all transactions and eliminates chances of omission. You can enhance your line of communication by investing in a reliable system of cash distribution, expense account reimbursement, and receipt submission. 

Additionally, a bookkeeper liaises with the heads of departments to make enquiries on inventory needs. For instance, the bookkeeper can order if office supplies and products are less than needed. 

Other primary responsibilities of a bookkeeper include;

  • Processing payroll 
  • Performing banking activities 
  • Reconciling reports 
  • Producing monthly financial reports 
  • Handling accounts receivable 
  • Handling accounts payable

Some bookkeepers have expert knowledge on accounting and may take up advanced duties such as creating budgets and forecasts, tax filing, training staff on the use of software solutions, and end of year reporting, particularly for small businesses. 

How Does Bookkeeping for Retail Business Work?

Retail business bookkeeping involves creating a framework, choosing between double- or single-entry accounting methods, and keeping records.

For single entry accounting, bookkeepers make entries once, either as an income or expense. On the other hand, the double-entry transaction involves recording transactions twice as a credit or debit. Your choice of entry system impacts the accuracy of your transaction records and the efficiency level of your bookkeeping process. Typically bookkeeping for a retail business entails keeping tabs on expenses, sales, inventory, receivables, and payables. 

Inventory Accounting

Bookkeepers use reliable systems to track and record inventory movement daily into and out of the retail business. As a result, you will have a record of the cost and quantities of all supplies you receive, along with the selling price of every product sold. In addition, bookkeepers adjust records regularly to account for damaged, stolen, or spoiled goods – this ensures that the documents show accurate numbers of the available inventory. 

Since your inventory is the most significant asset of your business and probably your biggest investment, it’s only reasonable to ensure that you keep accurate records that you can access when necessary.  

Income

Bookkeepers keep records of all income that flows into the business and compare the figures with bank statements to identify any variation. While you may be generating income via other sources like after-sale service fees or consignment commissions, your sales revenue is your primary driver of income. 

Also, bookkeepers regularly perform audits of the point of sale system records to ensure accuracy. Simply put, bookkeepers keep receipts of all revenue earned and transfer the sum into the business accounting system. 

Expenses

Bookkeeping involves tracking business expenses and comparing the figures with the bank records as often as possible. A good bookkeeping and accounting system automatically records recurring, variable, and one-time capital investment expenses. All these expenses are recorded in separate accounts to make calculating profits and preparing financial reports easier. Typical expenses include rent and lease, labour expenses, taxes, fees, and purchases.

Payable and Receivable

Bookkeepers handle accounts receivable and account payable. Your accounting system should remind you to clear your debts on time and manage debt collection from credit customers. 

Managing payables can raise your credit rating while keeping track of your receivables ensures that you have enough working capital. 

Owners’ Equity and Retained Earnings

Bookkeepers record all owners’ resources added to the business in a different equity account. Although this information might not be relevant in the short term, it will be beneficial in the future when a partner quits.

Additionally, bookkeepers document the amount saved, the amount retrieved, and all interest earned within a retained earnings account. 

What Types of Records Should a Retailer Keep? 

To properly determine your retail store business performance and prepare for tax time, you need to have accurate records of all your sources of income, expenses, purchases, payables, and receivables. Some of the critical documents that you need to keep include:

Journal of Non-Cash Transactions Affecting Accounts Payable

This journal lists the amount of money you owe another business or individuals after purchasing inventory on short-term credit. It includes the actual amount owed, the creditor, payment date, and the date when you cleared the debt. You can’t be charged twice for one service or product with this record.

A Journal of Cash Transactions

A cash transactions journal contains records of all payments you make in the form of cash. Some cash transactions include;

  • Cash refunds after the return of goods sold
  • Payment to creditors
  • Cash payment for rent, insurance, salaries, and other expenses
  • Cash withdrawal

Sales Slips, Invoices, Receipts, Cash Register Receipts, and Other Sales Documents

Sales documents indicate the quantities of products you sell and the revenue your retail store makes daily, weekly, and monthly. In addition, they include the type of goods or services sold and the cost of each sale. Cash register receipts, for instance, show the different forms of payments used by customers, such as credit cards, cash, or checks. On the other hand, an invoice shows the type and cost of the product you have provided to your customer. It serves as a request for payment.

Conclusion

Bookkeeping for retail business is key to business success and growth. Without proper financial reporting, chances of making business decisions based on inaccurate financial statements are high. And most importantly, you are legally required to use correct records when filing taxes. It’s never too late to get started. Learn about Visory’s Bookkeeping Services.

Single-Entry vs. Double-Entry Bookkeeping

One of the significant decisions you must make when starting a business is whether to use double or single-entry bookkeeping. Your business survival highly depends on your ability to maintain accurate records of all your financial transactions. So, which is the best bookkeeping system for your business? This article discusses single entry vs. double-entry bookkeeping plus the pros and cons of each financial reporting system.

What is Single-Entry Bookkeeping?

Single entry bookkeeping is an accounting system that features one entry for every transaction. It is an excellent choice for small, uncomplicated businesses with minimal activity. 

With a single-entry bookkeeping system, you will record transactions like taxable income, cash, and tax-deductible expenses. Each transaction included in the single column can either be negative or positive. However, you can also add expenses and revenue in a two-column ledger with each transaction on one line. 

You can manage your single-entry bookkeeping system in accounting software or use a spreadsheet or paper. A typical single entry journal contains details like;

  • Date 
  • Transaction description
  • The value of the transaction; can either be an expense or an income
  • Balance

The last row on your single-entry table should highlight the monthly or yearly ending balance. There is also no harm in adding another column for notes.

Advantages of Single-Entry Bookkeeping

Straightforward

Single-entry bookkeeping is simple and easy to manage, making it an ideal choice for business owners who don’t have adequate accounting knowledge. In addition, it doesn’t feature complex rules and principles of financial recording. 

Cost-Effective

You don’t have to hire a professional bookkeeper or accountant to manage your single-entry bookkeeping system; hence the cost is low compared to the double-entry system. 

In addition, a single-entry system involves recording a few transactions. It, therefore, doesn’t require an expensive software program. 

Easy to Determine Profit

A single-entry system allows you to calculate the profits or losses of your business. As a result, you can understand your business’s financial health and areas you need to reduce costs. 

Ideal for Service-Based Businesses

If you run a small service-based business, a single-entry system is an economical choice. You don’t need to invest in an expensive accounting system since you won’t be dealing with inventory complications. 

Disadvantages of Single-Entry Bookkeeping

Unsystematic and Unscientific

The single-entry system is an unsystematic method of recording and keeping business financial transactions since it doesn’t feature any fixed rules or principles for updating the records.

Hard to Track Assets and Liabilities

While this drawback wouldn’t be an issue for small businesses, it would matter for larger businesses with many assets like buildings and cars. In addition, it’s almost impossible to track the effects of liabilities with a single-entry system.  

It’s an Incomplete Accounting System 

The single-entry accounting system is considered incomplete since it doesn’t include critical accounts like inventory, payable, and receivable. Meaning it’s almost impossible to create an income statement or balance sheet.

 Generally, a single-entry system doesn’t reflect the actual financial health of the business.

Hard to Detect Errors or Fraud 

The rule of thumb in a double-entry booking system is that the credits and debits figures must match in the final report- a mismatch indicates inaccurate entries. On the other hand, the single-entry system doesn’t follow this rule; hence mistakes can be compounded without noticing. 

What is Double-Entry Bookkeeping?

A double-entry bookkeeping system involves recording financial transactions in two accounts- debit and credit accounts. It relies on the rule of duality; every transaction affects both accounts simultaneously. One account is therefore credited while the other is debited. At the end of the financial period, the total credits must equal total debits. 

It’s easier to detect errors with a double-entry accounting system due to the equation it is based on:

Assets = Liabilities + Equity 

Liabilities, in this case, represent everything you owe including payroll, and assets are what your business owns. Equity is the shareholder’s stake in the business.

Advantages of Double-Entry Bookkeeping

Ensures Accuracy and Detects Fraud 

With a double-entry system, bookkeepers can notice and correct errors quickly. All transactions are recorded on two accounts -the debits and credits must balance. Therefore, there is minimal to zero chance of mistakes, misappropriation, and fraud.

Complete Accounting System

The double-entry system features personal, real, and nominal accounts. Therefore, you can quickly generate financial reports straight from the accounts since all the relevant information is available. 

 Scientific and Systematic System 

You must follow specific rules and principles of recording financial transactions when using the double-entry system-this is why it’s classified as a scientific system. 

Generate a Trial Balance 

A double-entry system allows you to generate an income statement and balance sheet that make up the trial balance. You can monitor your business growth and assess revenue and expenditures using data on an income statement. 

As a result, it becomes easier to decide what areas need more investment and how you can cut costs to boost profits. 

Disadvantages of Double-Entry Bookkeeping

More Expensive

The double-entry accounting system requires numerous accounting books like cash books, ledgers, and journals. In addition, you might need to hire a bookkeeper or invest in bookkeeping software. It’s, therefore, costlier than the single-entry system.

Complex 

The double-entry accounting system is complex since it follows certain accounting principles and standards. You must therefore have expert knowledge and experience to manage the books. 

What Is the Difference Between Single Entry and Double-Entry?

Number of Entries

With a double-entry system, a single transaction has two entries, one in the debit account and the second in the credit account. On the other hand, a single-entry system features one entry for each transaction. 

What Is Recorded 

A single-entry system records cash flowing in and out of business- revenue and expenses. The cash can be physical cash, electronic fund transfers, or credit card payments. 

The double-entry system includes expenses, assets, revenue, equities, and liabilities. 

How Transactions are Recorded 

Bookkeepers that use a single-entry system document revenue when it flows in and record an expense when it flows out. In contrast, businesses that use the double-entry system document revenue when earned and document expenses before making payments. 

Conclusion

Maintaining correct financial records can help you prepare for the tax period, create a budget, and evaluate your business’s financial health. 

The best bookkeeping system depends on the size of your business and requirements. A double-entry system is arguably the best since it can offer a 360-degree view of all your financial transactions. As a result, it makes financial reporting more manageable and helps you make informed financial decisions. 

Learn about Visory’s bookkeeping services.

 

Should Your Bookkeeper Have Access to Your Bank Account?

Bookkeeping is a vital part of any business. As a growth-focused entity, you should have an accountant that can help guide your bookkeeping needs and keep you on track with the best practices in the industry. Like any other professional or employee in your organisation, the accountant deserves respect and trust.

But what should be the limit for that respect and trust, especially when it touches your business finances? For instance, should your bookkeeper have access to your bank account? The short answer is, it’s a personal choice, so there’s no right or wrong decision.

Let’s face it, though; surrendering your bank details to another party isn’t the easiest decision to make. That’s why we’ve prepared this comprehensive resource to discuss the top factors to consider before giving account access to your bookkeeper. We’ll also look at other options to explore and highlight the importance of your bookkeeper accessing your accounts. So let’s get started!

Should Your Bookkeeper Have Access to Your Bank Account?

As we hinted above, giving a bookkeeper access to your bank account is a personal choice. But before you make that decision, here are some things to think about:

What Is Your Bookkeeper’s Experience Level?

The first thing to consider is whether you’re comfortable handing over control of your financial information to someone who has less experience than yourself. If you’re unsure how much experience they have, it might be worth checking their credentials and references.

How Much Do You Trust Them?

The next step is gauging how much you trust them. You need to feel confident that they won’t use your information inappropriately. That means having an open line of communication between you and your bookkeeper. It also means making sure they understand the terms of service for your bank accounts.

Are They Responsible for Managing Your Accounts?

If you choose to share your banking information with your bookkeeper, you must also consider whether they will be responsible for managing your accounts. That means being able to log into your online banking platform and monitor transactions.

Will They Be Able To Provide You With Financial Reports?

If you want regular reporting of your business finances, you’ll need to provide your bookkeeper with login credentials. And while many accounting software packages allow for remote access, you may find it easier to meet with your bookkeeper regularly to review your financial statements.

Can They Manage Your Payroll, Taxes, and Wages?

Finally, you’ll want to ask yourself if your bookkeeper can manage these critical areas of your business as well. While most accountants specialise in tax preparation and payroll services, they often offer additional support such as bookkeeping, general ledger management, and even payroll processing.

What Other Options Should You Explore If You Don’t Want to Give the Bookkeeper Your Bank Account Login Credentials?

If you’re not comfortable sharing your bank account login credentials with your bookkeeper, there are still other ways to go about it. Here are a few ideas:

Give Your Bookkeeper Read-Only Access to Your Accounts

Giving ‘Read-Only Access’ allows your bookkeeper to view your transaction history but doesn’t require them to have access to your bank account login credentials. That means they can view transaction statements and see images, but can’t complete transactions, move money, or pay bills.

Use Barriers

Several top-tier software programs enable companies to allow their bookkeepers to view financial details without being able to make changes or adjustments. This comes in handy if you only want your bookkeeper to have a level of access to your business finances that you’re comfortable with. 

Share PDF Statements

If you don’t trust your bookkeeper with your bank account details, you have the option of providing them with regular copies of your financial statements in PDF format. That way, they can effortlessly download the information and feed it into the online accounting software or print out a copy for themselves.

Why Give Account Access to Your Bookkeeper?

The benefits of giving your bookkeeper access to your bank account can outweigh the risks, and industry experts generally recommend it. If you’re still sceptical, you may change your mind after discovering what your business stands to gain should your bookkeeper have access to your bank account. Here’s a highlight of the top benefits:

Better Financial Reporting

When you give your bookkeeper access to all of your accounts, they will be able to better prepare reports for you. These reports include balance sheets, income statements, cash flow statements, and profit and loss statements. They also provide valuable insights into how your business is performing.

More Effective Budgeting

Your bookkeeper can help you create a budget and track spending. They can also implement strategies to manage your expenses better, helping you know exactly where your money goes.

Faster Payroll Processing

When you share your bank account login credentials, your bookkeeper can process payroll faster than ever before. They can easily import data from your bank statement and send out invoices to your employees.

Efficient Cash Flow Management

Your bookkeeper can quickly identify any problems in your cash flow management system. By having access to your bank account, they can spot potential issues such as overdrafts or insufficient funds.

Easier Tax Preparation

By sharing your bank account login credentials with your bookkeeper, you can save yourself some time during tax preparation. You no longer need to go back over each transaction one by one to ensure everything is correct. Instead, your bookkeeper can simply log in to your online banking portal and pull up your transactions.

Conclusion: Visory is Your Go-To Bookkeeping Service!

Visory is a top-rated service provider that offers excellent bookkeeping services at competitive prices. Our team of highly trained professionals is ready to take care of all your business-specific bookkeeping needs. We offer a wide range of services, including bookkeeping, reporting & insights, accounts payable & receivable, payroll processing, and taxes.

Our purpose is to help business owners and SMEs realise their growth goals through effective bookkeeping solutions. So don’t get left behind. We invite you to learn more about Visory’s bookkeeping services, so you can take advantage of our expertise today!

How Does Bookkeeping Help a Business?

Finding the right bookkeeper, who can smoothly apply themselves in the role they’ve been hired to do, gives your business an edge. You need to be able to trust your bookkeeper to competently handle the important financial and accounting tasks such as reconciliation, invoicing, payroll, and preparing financial statements.

When you’re a small business owner, you may prefer to be your own bookkeeper, likely because you’re still dealing with a few transactions and want to avoid the hiring cost. However, in the future, as you expand and acquire more customers, you may struggle to catch up with your books as you will not just be handling income and expenses. You will have to track factors such as assets, employees, and taxes that require an extra hand to document consistently.

Further, bookkeepers are increasingly becoming invaluable to businesses as they advance into consultancy, training, implementation, and maintenance of business systems. Growing your brand means you are wearing many hats, which limits your ability to achieve your vision. A bookkeeper will help make the transition less stressful, as they will fill in the role of sustaining your business’s lifeline.

How a Bookkeeper Can Help Your Business

A bookkeeper essentially keeps your books in order. They undertake the mundane but vital tasks that help your business stay afloat. A growing business needs good decision-making, strategizing, and planning. Maybe you need to add another line item, develop a marketing campaign, or hire new employees; bookkeepers are tasked to prepare reports such as the cash flow, profit and loss, and balance sheet, which reveals if you have the money to do all that.

A well-rounded bookkeeper will also offer you solid professional advice and be a good problem solver to rely on when going through a rough patch in the business. In the coming decade, bookkeepers, along with other financial professionals, will largely help boost the revenue and growth of many businesses by leveraging digital tools and their professional skills.

Regardless of the size of your business, a bookkeeper is important to help ease the daily pressures of being an entrepreneur.

You’ll Have More Time to Focus On Your Business Functions

Businesses spend on average 12 hours in daily meetings, making cold calls, negotiating terms with vendors, and training their staff. If this is what your day looks like, you still have to prepare a payroll, generate invoices, and file taxes, which could take endless hours of gathering and reviewing your reports. This allows room to make costly errors with your finances and taxation.

A bookkeeper could halve or completely save the time you spend collecting, analysing, and reporting on financial documentation. This frees up your time to fully take up your leadership role and come up with ways of getting your business to the next level in your industry. Most successful organisations have not reached where they are without at most delegating work to their teams.

Save Money With an Outsourced Bookkeeping Service

Cost reduction is a leading factor when organisations outsource services, according to the Deloitte Global Outsourcing survey. This trend will likely carry on into the future as more workers and organisations embrace working online and remotely, opening spaces for third-party services.

Thinking that you’re saving money by doing your own books could potentially open your business to grievous financial consequences. One of the mistakes you can make is failing to be consistent in following up on your invoices, leading to cash flow problems. Another mistake is inaccurate tracking of your payments, which will prevent you from claiming the correct GST and tax deductions to reduce your tax bill. Outsourcing to a bookkeeper may cost you upfront in fees, but in exchange, you potentially insure your business against losing money and facing a huge tax burden.

Find Business Opportunities and Optimisations With Improved Reporting

Working with a bookkeeper who is knowledgeable about accounting systems makes sure you get reports like clockwork. Your financial reports show a big picture of whether your business is failing or succeeding. A bookkeeper handles thousands of financial transactions, which need to be captured and be analysed in detail and summarised into reports that influence your decision-making. For example, when doing a market analysis to determine if you can set up a new store in a different location, a cash flow projection will inform you if it makes business sense. Your bookkeeper is best suited in preparing a cash flow projection as they are deeply involved in the operations of your business.

Reports also enable you to identify areas needing improvement to boost your business’s revenues and market position. Also, taking advantage of automation in your reporting helps your bookkeeper to give you value for your money.

Get the Most Out of Your Existing Bookkeeping Software

Many bookkeepers are going a step beyond their normal roles, like training staff on how to use accounting software. They are also helping in choosing the right software that is customised to a business’s needs.

Most cloud-based accounting software like Xero helps bookkeepers to smoothly perform expense tracking, financial reporting, billing, invoicing, and budgeting, so your business stays on a growth trajectory. However, bookkeeping software is only useful if it’s fed with relevant and accurate information, which a bookkeeper can handle without a challenge.

Outsourced Bookkeeping Is More Affordable Than Hiring a Full-Time Employee

Many growing businesses prefer to outsource to third-party providers rather than have an employee on payroll to save costs. A full-time employee can cost you thousands of dollars in training and benefits. In comparing costs, the annual salary of an in-house bookkeeper is an average of $67,500, while outsourced bookkeeping services will cost you from $500 to $5,000 per month, which is $60,000 per year if you’re a small to medium-sized business. The difference in service charges is $7,500, which is significant. 

In addition, outsourced bookkeepers have the tools and capacity that your business may lack, which translates to better tracking of spending and generating more revenue. They can also act as your trusted advisor as there’s no conflict of interest, unlike with an employee, which could expose your business to fraud.

Working With a Bookkeeper Is the Right Move for Your Business

Your team is one of the best investments for your business. Having a bookkeeper as part of this team means your accounting and financial needs will be met with the utmost professionalism and integrity. Ultimately, you have to get the right person for the work to avoid paying for messy accounting work in the future. Aside from having the right training and experience, finding a bookkeeper who is dedicated and strategic with your vision is impactful to your success.

If you’re looking for a reliable and trusted bookkeeping solutions provider, Visory is here for you. Our bookkeeping experts will help fix any issues with your books of accounts that are stopping your business from scaling up. Go ahead and get in touch with us today to learn about Visory’s bookkeeping services.