Many small business people do their own day-to-day accounts. There is certainly nothing wrong with entrepreneurs keeping a close eye on both their expenditure and outgoing invoices in this way. However, you can still manage your business finances well enough from management reports that give you a regular overview of where you stand without having to be so involved in all the various aspects of bookkeeping. This is why it is often better to turn to a company providing bookkeeping services. You gain more time for doing what you do best — growing your business — while never relinquishing any control over your company's finances. Why else are outsourced bookkeeping services so popular these days?
Although bookkeeping is something most entrepreneurs can cope with, it is not usually an area which they could reasonably claim to be experts in. However, when you outsource your bookkeeping to a specialist, you can expect a much higher level of expertise. Of course, your books should be error-free, but they will also be more up to date with all of the latest purchases and outgoings accounted for when they are outsourced. This additional know-how should mean you are alerted at an earlier time to any potential problems, such as cash flow bottlenecks or unpaid invoices that may become bad debts.
Prepare Your Tax Returns
If you want a bookkeeping services firm to prepare your tax return with the Australian Tax Office (ATO), then you will need a certified BAS agent. Getting your tax prepared in advance can help a great deal when it comes to making the deadline and avoid penalties. It is equally as important for making sure your tax return is correct and avoiding any additional inspection that the ATO might otherwise impose on your business. Of course, even if your outsourced bookkeeper is not a BAS agent, having your books updated will make the process much simpler even if you lodge your tax return yourself.
If you are a sole trader, then is highly unlikely you will face cases of fraud unless a customer attempts to pay you with money that is not really theirs. However, for some small business people, especially those with employees who claim expenses or make purchases on the firm's behalf, fraud can be a real issue. Having a third-party, such as a bookkeeping service provider, overlook your company expenditure will help to prevent such attempted frauds, especially when your workforce knows that their spending is carefully checked every time it is recorded.
For more information, contact a bookkeeping service near you.