7 Ways a Professional Bookkeeper Will Save you $$$ (Part 2)

Here’s a few more specific ways a professional bookkeeper will save you money.


4. Opportunity to Implement Efficiencies

If you employ a bookkeeper directly, you normally have to guarantee them a certain amount of work each week. There is no incentive for them to implement efficiencies to reduce the amount of hours required to perform the bookkeeping functions for your company as it will mean they will be robbing themselves of a job.

If a professional bookkeeper reduces the role from one to two days per week, they can allocate that staff member to another client so the client is saving money and the bookkeeper will make up those hours at another client.

5. Flexibility and Backup

Guess who has to pay the wages and the bills while everyone else is on Christmas Holidays? That’s right- it’s the bookkeeper. If you employ a bookkeeper directly, there’s never a good time for them to take a holiday as there are certain duties that may be confidential and you may not wish to share with your other staff.

A professional bookkeeping firm will ensure there is backup for that role and that there is a second person with knowledge of those crucial areas so that there is no gap over Christmas Holidays or when the bookkeeper wants a holiday.

6. Save Payroll Tax and other Employment Costs

When you compare the cost of employing a bookkeeper directly as opposed to outsourcing to a professional bookkeeper, make sure you include all the additional on-costs associated with employment when making your comparison.

On-costs include superannuation, annual leave, sick leave, public holidays, workers compensation insurance, payroll tax and recruitment. For a detailed example, see our Hidden Costs of Employment example. In the example you’ll see how these on-costs add up to an additional 42% of the base salary.

7. Stricter ATO Regulations for BAS Preparers

The ATO has recently introduced penalties of up to $22,000 for unqualified bookkeepers that perform BAS related work. This means that if you have an unqualified bookkeeper, you will have to pay your tax accountant to review any BAS work and will be paying the tax accountant rate.

If you use a professional bookkeeping company that is properly qualified, your BAS will be prepared at the bookkeeper rate.

I hope this gives you some ideas of how using a professional bookkeeper can save your business money. If you have any queries please contact us though www.booksonsite.com.au

Tim Johnston

Related posts:

  1. 7 Ways a Professional Bookkeeper will save you $$$ (Part 1)
  2. Welcome to my SME & Bookkeeping Blog
November 21, 2007 | Filed Under Bookkeeping Tips 

Comments

2 Responses to “7 Ways a Professional Bookkeeper Will Save you $$$ (Part 2)”

  1. Zanria on May 28th, 2008 10:05 pm

    Dear Sir

    What is a professional bookkeeping? Is it CPA or Master or BA in accounting?

    REgards
    Zanria

  2. Shane Holbeck on January 25th, 2010 7:38 pm

    Zanria

    There is no strict defination of a professional bookkeeper, nor is there a minimum level of educational qualification that is attached to defining a professional bookkeeper. Being a professional bookkeeper is all about being competent to perform bookkeeping duties.

    There are however certain factors that would tend to indicate competency:
    1. member of a professional accounting or bookkeeping association
    2. relevant experience
    3. educational qualifications
    4. ongoing professional development or education

    Hope this helps

    Shane Holbeck
    Accountix

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