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Proper bookkeeping is very important to maintain the consistent growth rate of the company. As a matter of fact, it is the bookkeeping department that discloses the actual status of the organization in the market.
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Australian Bookkeepers Network Bookkeeping - Why it should be outsourced?
Proper bookkeeping is very important to maintain the consistent growth rate of the company. As a matter of fact, it is the bookkeeping department that discloses the actual status of the organization in the market. With genuine bookkeeping help, you not only avail a good resource for the functioning of your statistical data, but it also gives you valuable advice for better execution of your finances whenever required. It takes time to look after your own books. Trying to understand the accounting software programs can be a frustrating experience for some small business owners, in spite of the fact that most of the new ones are now very user-friendly such as Simply Accounting. There are two forms of seeking bookkeeping help. One is manual and the other is computerized. Mainly small companies with less workforce and low number of transactions take the assistance of manual accountancy. On the other hand, big organizations with huge data, information transfer mostly opt for the computerized bookkeeping.
A lot of small business operations are just too small to justify the employment of a full-time bookkeeper. The bookkeeping function is merged with a variety of office procedures as well as receptionist duties. The problem with this arrangement is that the bookkeeping is not completed accurately. The employee is distracted from the input process and quite often errors are made. These omissions end up costing money during the year-end accounting process when the accounting firm is preparing financial statements and tax returns. There is also the danger of incorrect allocation of disbursements which may be overlooked by the accountant and could result in tax re-assessments. The turnover of staff makes it very expensive for a small business owner to repeat the training process of bookkeeping staff. Also, the owner does not have the bookkeeping skills to carry out the actual training. The lack of bookkeeping skills by the owner makes it very difficult to supervise the bookkeeper's work.
The level of expertise in a bookkeeping firm can be greater than the skill level of an employee thus affording a more valuable overview of the small business bookkeeping system. There is a greater chance that better bookkeeping procedures will be put in place thus resulting in more accurate reporting. There can be significant cost savings by outsourcing your bookkeeping to a competent bookkeeping service. A small business owner may only need a few hours of bookkeeping support thus bringing down the bookkeeping fee to the $200 per month range. This amount is no way near the thousands of dollars per month for a full-time employee. The payroll costs alone would exceed the $200 per month.
The disadvantage of outsourcing means that the small business owner has to wait for the designated date to get his or her bookkeeping up to date. Also, the original receipts have to be organized for the bookkeeper and sometimes delivered to an off-site location. The receipts not being available can be inconvenient when needed by the small business owner. In some cases a system of scanning the receipts and setting authorization for the bookkeeping firm to review banking transactions online can expedite the receipt delivery process. Bookkeeping in Australia is very often ignored by the small business owner and not kept on a current basis, thus causing late filing of sales tax reports and resulting in the late filing penalties. The hiring of a bookkeeping firm can avoid this problem. Every small business owner should carefully review his or her bookkeeping needs and decide on the best course of action.
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