7 Ways a Professional Bookkeeper will save you $$$ (Part 1)

Some small and medium business (SME) owners try to do their own accounts or they may employee a bookkeeper directly. This can be fine if you are lucky enough to recruit a good bookkeeper directly, however unless you have an accounting background and a thorough understanding of the accounting software involved, it can be difficult to know what questions to ask at the interview process.

Even if you find someone who looks good on paper, unless you know what reports to ask for it can take months to pick up if they are performing or not. Over 50% of clients that come to us have had a bad experience trying to employ a bookkeeper directly. Usually within the first week we uncover things such as:

These mistakes can be very costly and sometimes terminal for some businesses.

Here’s 7 ways a professional onsite bookkeeper will save you money:

1. Help you work “on your business, not in your business!”

I know, it’s an old chestnut from that fantastic book E-Myth and which forms the cornerstone to most business coaching strategies. It is the key to being able to grow any business and applies to bookkeeping as with any other part of your business.

If you employ a bookkeeper, you still have to monitor the quality of their work, when they work, when they take holidays, etc. By outsourcing all of your accounting and bookkeeping functions to a professional bookkeeper, all of your accounts duties become their responsibility and you can focus on growing your business, with the confidence that you are receiving accurate reports on your performance and meeting all statutory obligations.

2. An onsite bookkeeper gets to know your business

There are some bookkeeping services that offer to take care of your accounts from their office which could be based anywhere in Australia or as far away as India. This involves transferring source documents either electronically or physically back and forth from your office to theirs. While this can be fine for micro businesses, it can prove difficult once your business begins to grow.

Before you can provide meaningful management reports, you need to know how a business operates and what are it’s key performance indicators. The only way to achieve this effectively is to get to know the company and the people who work within the company. This can only be done by performing the bookkeeping functions at the clients premises.

3. There’s “bookkeepers” and then there’s “bookkeepers!”

There can be a huge difference in skill level of people that call themselves bookkeepers. Just as an apprentice “chippie” and his boss with 30 years construction experience may both call themselves “builders,” people representing themselves as bookkeepers can range from data entry clerks through to qualified management accountants.

A professional bookkeeping firm should be accredited in the accounting software used by your company and they should have qualified accountants to support their bookkeepers to enable them to provide a management accounting level of service.

In part 2 of this blog I’ll look at a couple of more specific ways a professional bookkeeper can save you $$$.

Comments

9 Responses to “7 Ways a Professional Bookkeeper will save you $$$ (Part 1)”

  1. Accounting Police: Do They Exist? on February 25th, 2008 9:37 am

    Who created accounting principles? Who sets and revises accounting standards? What if you don’t follow all the rules, do you go to jail? Is there an accounting police force that investigates and arrests violators? It would seem that there must be some regulatory force to make sure that providers of financial statements conform to the rules.

  2. Daniel on February 27th, 2008 6:05 pm

    I couldn’t understand some parts of this article a Professional Bookkeeper will save you $$$ (Part 1) | FINOS, but I guess I just need to check some more resources regarding this, because it sounds interesting.

  3. Small Business Accounting on March 11th, 2008 5:43 am

    I love your site. I found your blog via Google while searching for small business accounting and your post regarding a Professional Bookkeeper will save you $$$ (Part 1) | FINOS looks very interesting to me. It really looks very nice. The articles provided are long enough to provide great content but not so long as to be totally engrossing, if you know what I mean.

  4. james on March 31st, 2008 12:07 pm

    “They should be accredited in the accounting software used by your company”
    what sort of accreditation should I look for?

    “they should have qualified accountants to support their bookkeepers to enable them to provide a management accounting level of service.”
    Doesn’t that mean that you are an accounting firm who provides bookkeeping? If I want Accountant Management Level service, shouldn’t I hire a CPA?

  5. Shane Holbeck - Accountix on January 25th, 2010 8:20 pm

    Very good article and so very true.

  6. Bookkeeping Brisbane on April 5th, 2011 1:16 pm

    I totally agree with your comments on using an onsite bookkeeper. It is invaluable for them bookkeepers to work at the premises and get a real understanding of the business. It can also significantly improve communication and results.

  7. aprbookkeeping on July 25th, 2011 6:52 am

    There have been a number of changes in the last 12 months affecting business and bookkeepers.
    These changes relating to bookkeepers ensures that the bookkeeper you contract to undertake your financial processing and reporting holds the relevant qualifications and certifications. It also means that they are up to date with the latest changes in legislation. The changes to the legislation make bookkeepers accountable for their actions and bring them into a more professional business field.

  8. accounting firms on August 6th, 2012 8:24 pm

    It is true to say that in the year 2007, the cost of legal aid has become so expensive that it is fast becoming out of the reach of most individuals and small businesses. This introduces significant problems to people and small companies which find themselves in the situation where they need to get expert legal advice. One option is the Do-It-Yourself (DIY) approach. This approach might work well when remodeling the house or servicing your car, but is fraught with dangers and difficulties when you need to deal with something as complex as the law. Getting it wrong can end up costing you, or your company, a lot of money. It can lead to bankruptcy, or worse still – a conviction and jail term.

  9. Bookkeeping on November 8th, 2012 2:51 pm

    Hey there! I really appreciate your article. You have given a good insight and a clear picture of why professional bookkeeping services are important. Professional bookkeepers take care of everything as per ATO rules and regulations and more important is that things are done timely as you have very rightly said.

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