As a small business owner, you may or may not have a background in accounting and know the specifics about debits, credits, and tax-deductible expenses. Even if you do, it doesn’t mean you should do your own Xero or spreadsheet bookkeeping. This article will discuss why hiring an expert is the best way to manage your finances.
Most business owners believe they ‘should’ be doing their bookkeeping. But what If we removed the ‘should’, removed the burden and wasted energy of procrastinating and freed up your valuable time? You concentrate on what you’re good at and outsource your Bookkeeping.
Here are a few reasons why:
Your Time is Valuable
This is probably the most obvious reason. As a business owner, you are the captain of the ship. You don’t have time to get bogged down in details. It would be best if you freed your time to make critical leadership decisions about the future of your business. When you outsource your bookkeeping, you’re hiring an expert. This frees up your time to focus on other aspects of running your business.
It may appear that you are saving money by doing your bookkeeping. However, if you could be making more money per hour serving your customers than you are saving per hour doing bookkeeping, DIY accounting will cost you money.
When you hire a bookkeeper, you get access to their expertise. When doing your bookkeeping, you will make mistakes, have incorrect figures, and can’t make critical business decisions. You then have more costs paying an expert to fix your errors.
When tax time rolls around, there are even more issues to consider. Income tax, GST, and other taxes or regulations have unique rules that you, a business owner, could pull your hair out trying to keep up. On the other hand, bookkeepers know all the latest government regulations and tax guidance.
Outsourcing your bookkeeping and tax filings to a dedicated Byron Bay based bookkeeper who understands taxes can be worth it for the peace of mind alone.
Understand Your Business’ Financial Position
So many businesses scrape by on the bare minimum of financial recording. They figure, “if it’s good enough for the tax man, it’s good enough for me. While this may get you along for a while, if you are serious about growing your business, you need a detailed understanding of your business’s financial position at any given time. Online accounting software such as Xero or our spreadsheets can give you the real-time financial data you need to make critical management decisions for your business. An expert bookkeeper will help you analyze that data to know what you need.
Outsourcing your daily bookkeeping and other accounting tasks can be worthwhile for any of the reasons here. Suppose even one of these ideas resonates with you as a business owner. In that case, it could be time to consult an expert to see how a partnership with a professional bookkeeper could benefit your business. Contact Nea Alexandra Bookkeeping today for a free discovery call.
Nea Alexandra Bookkeeping is based in beautiful Byron Bay, servicing Australia-wide.