5 Reasons to Use an Outsourced Bookkeeping Service
Bookkeepers record all business transactions and with accurate financial records, while managers and business owners answer the following crucial questions: Who owes me money? Who do I need to pay and when? How financially sound is the business or is cash flow becoming patchy?
The reason you need a sound system of bookkeeping is because it provides a secure bedrock to gather the necessary information to answer the above questions. However, running a business means you have to have your fingers in many pies, and bookkeeping seems to be the bugbear for most companies and organisations.
So, why not outsource your bookkeeping to the team at BYO Group? We can provide you with a quality service and do what we enjoy most, while leaving you to do what you love as a business owner or manager. By outsourcing your bookkeeping, your bills will be paid when due, and our BYO Group team of bookkeepers can make sure your BAS is accurate and lodged on time, and your cash flow is managed.
1. Bookkeepers LOVE Bookkeeping!
At BYO Group, we love what you loath! Yes, it’s true, bookkeepers do love bookkeeping. Having a qualified, experienced bookkeeper to manage the transactions and paperwork required to run a small business allows you to free up your time and focus on revenue-generating activities.
When you outsource to a bookkeeping service, it means they can update your transactions a lot quicker and more accurately than you can, and they are also up-to-date with all of the current regulations and legislation.
2. Avoid Fines & Penalties
The Australian Taxation Office (ATO) is not happy when businesses fail to lodge their BAS statements on time. If this is you, then you’re probably liable for late lodgement fees. Unless you call the ATO and explain your situation and get an extension, you could be up for a penalty of $170 charged for every 28 days the BAS remains unlodged plus interest on late payment.
For medium-sized enterprises with a yearly turnover of $1 million to $2 million, they’re hit with double that fine. Larger businesses are charged five times more.
If you use a BAS or tax agent, you must supply them with all your documents well in advance of the due lodgement date to avoid these hefty fines. But if you outsource your bookkeeping to BYO Group to complete your BAS statements, you can be sure you don’t miss the deadlines.
3. Who Owes You Money?
All business owners and managers should ask themselves daily: Who owes me money? Do my customers know they owe me money? Do my customers know how to pay me? Chasing unpaid debts is no fun, but there are things you can do to recover the debt, and measures to reduce the chance of a recurrence.
The most important first step is to do thorough background checks on any businesses or customers before entering into any financial agreements with them. Where do you stand if they can’t pay you?
They could be in the process of liquidation, or deregistration for example, so always check with the Australian Securities and Investments Commission (ASIC). These tips can help:
- Don’t provide goods or services until the customers’ bills are paid.
- Make sure your payment options are clear and straightforward.
- Don’t be slow to send invoices.
- Give customers an incentive to pay early or on time by offering discounts if they do.
- When providing credit, set reasonable limit.
This makes all the more reason to outsource your bookkeeping.
4. Who Do You Need to Pay?
Managing your cash flow is crucial, so be prepared well ahead of time for the bills that are coming in. Knowing who you need to pay and when it is due is critical, and it’s part of good business practice.
Late payments cause a great deal of pain for small businesses by creating a patchy cash flow. And such an irregular cash flow can affect your ability to come up with the money to pay the bills and wages and enough profit to put back into your business to help it grow.
If you outsource your bookkeeping to a service such as the team at BYO Group, you will have a tailored system that is essential to help you stay on top of paperwork and keep your business forging ahead.
5. How is Business Going?
Integrity in your record keeping with up-to-date data will tell you how the business is performing.These two essential elements of both accuracy and timing is what great bookkeeping and business management is based. Keep your eyes on the numbers not populating the number iis the reason you need to outsource the bookkeeping to a quality service provider. Your outsourced bookkeeper can take care of all of the above, and show you how your business is going, so that you can keep it growing. To stay on top, you also need a written plan for a complete understanding of your business’s health and prospects, and a bookkeeper to keep everything running smoothly.
Call us today at BYO Group to speak to one of our highly qualified team members about your bookkeeping needs on 0402 100 421.