By Avi Bendetsky, Principal Director BAS & MORE Bookkeeping and Virtual CFO
While bookkeeping is not a direct source of revenue, if done right, it can help eliminate many costly mistakes and save your business more than a bookkeeper’s salary.
Proof? Here are just a few examples:
Making Sound Investment Decisions
It’s almost impossible to grow your business into a large company without external investments from various sources – be it angel investment, banks or partnerships. However, your eligibility for such investments is 100% driven by your company’s shape.
Your bookkeeper should advise you on the need and feasibility for specific changes in services, workflow or operations, possible expansions and the need to make cutbacks.
So too, a smart bookkeeper should identify areas where you are overspending and can find such issues as redundancies where payroll and supplier expenses are eating up potential profits.
Don’t forget about the benefits of financial reporting to analyse operations, cash flow trends, risks and projections.
Compliance and Regulations
The ATO, SRO and other government regulations are time-consuming to meet. A trustworthy bookkeeper will liaise with third parties on your behalf and can even negotiate payment plans to help avoid late BAS lodgment fees and other costly fines and penalties for non-compliance.
Grant and Loan Applications
When you apply for business loans or grants to facilitate growth, lenders and grant agencies expect an accurate overview of the company’s financial affairs.
If this information is not available or is poorly organised or incomplete, you can forget about getting that awesome grant or loan.
A good bookkeeper should present your company in a favourable light – by understanding your current state, potential for growth and business projections.
Saving Time for What You Do Best
How often do you find yourself drowning in the piles of paperwork? It takes you forever and results in unnecessary stress and frustration because — let’s face it — bookkeeping is not your forte.
And there is nothing wrong with it. We all have our strengths and weaknesses. You’d rather be growing your business, making sales or developing new products, as those are the things that make your business stand out and bring in cash. Sometimes, bringing even one new client on board covers your monthly bookkeeping fees.
Getting organised and avoiding costly mistakes
Efficiency is another thing a good bookkeeper brings into your business so you can get instant access to any information you need.
Importantly, analysing your figures helps to make money-saving and money-generating decisions, and helps avoid:
• Data entry mistakes
• Lost transactions in Accounts Receivable/Payable
• Business expenses, mix-ups or abuses
• Late fees caused by not paying your suppliers’ invoices promptly
When it comes to making plans about the future of your business, a good bookkeeper will provide expert advice on proposed expenses, expansions, replacements, reductions, and plans for generating the funds for making these changes a reality.
But to get there, you need to get the basics right first.
If you want to get your burning business questions answered, book a free phone consultation with BAS & MORE’s Principal Director, Avi Bendetsky Click here to choose a good time.