You started your own business because you wanted your passion to become your work. Now you're successful, but you find yourself spending more time on spreadsheets and invoices than on your work!
We all want to grow, but for many small businesses, growth doesn't just mean greater revenue. More customers also means more paperwork, more management and a more complicated tax situation. While a bookkeeper might seem like a costly indulgence when you're trying to watch every dollar, supporting the growth of your business requires delegation. You simply can't do it all!
Small business accounting software like Xero makes managing your business finances easier, but a good bookkeeper will also keep your account entries up-to-date, perform necessary monthly bank reconciliations and keep your records organised making tax time easy and efficient. The added expense for bookkeeping might even be offset when your accountant needs less costly billable hours to unravel confusing or incorrectly entered information.
Still not sure if you need a bookkeeper? We have a few questions to help you decide!
Are you behind on entering invoices and expenses?
Letting expenses pile up means you might be missing tax-deductible items, have an incomplete picture of the financial health of your business or even risk being late paying your own suppliers. If you find yourself spending several hours entering invoices and receipts when you could be working or taking time with your family, a bookkeeper is the solution.
Are you forgetting to send invoices?
Having your own business lets you do what you love and get paid for it. If you're so busy you're forgetting to send invoices, or if those invoices don't reflect the full amount you should be billing, your business will be in trouble quickly! With multiple invoices going in and out for each client, a bookkeeper will help you manage the process so money keeps coming in.
Are you late lodging BAS or annual taxes?
The ATO does not look kindly on having to send you a request to lodge your tax return or on repeated late lodgements. Rather than pay a hefty failure to lodge on time penalty, why not pay a (tax-deductible) bookkeeper to help you stay on track?
Outsourcing your bookkeeping to a certified Xero bookkeeper rather than trying and failing to do it yourself not only keeps your finances in order, but also helps your business run efficiently.
You'll have access to the monthly financial documents you need to make sound financial decisions and experience less stress knowing that you're paying and being paid on time. If you're ready to take the next step in your business, get in touch with the team at Digit Books today!