Many individuals start a business and they find themselves good at the admin side of it. If you have got a small business or are a sole trader, you can often manage your own bookkeeping. You may use simple accounting packages like MYOB Essentials or Microsoft Excel. However, you may want to talk to an accountant if you find it all confusing. Sometimes people try to do more than they are comfortable with when running a business. This can mean that they risk breaking the law and facing heavy penalties and fines.
Here are the top 5 signs that should look at hiring a professional bookkeeper:
1. When you are too busy to do your invoicing
You know that cash flow is important, but if you’re too busy to send out invoices it will suffer. And, without regular and proper invoicing, there is a risk that when they do get sent, your invoice may be completely missed altogether.
2. When customers are not followed up for non-payment
In business, there come times when your customers are not paying you on time. If you find yourself too busy to adequately follow up, or you resist doing so thinking it may spoil your relationship with them, it’s time to get professional help. This will ensure that accounts are followed up promptly, and that good professional relationships are maintained. If you face any trouble with bookkeeping, it is time to get in touch with Stones Corner business improvement professionals.
3. When things turn complicated
When you employ sub-contractors or staff, you enter a completely new realm of business. There are a number or rules and regulations which come into effect the moment you take on staff. However, there is a frequent misconception that when you hire contractors only and not employees, these rules won’t apply. But, there is no truth to that. Every situation must be evaluated effectively especially in scenarios when your contractor only offers labour. Expert bookkeepers are aware of the relevant legislation and have the capacity of advising you about your employment obligations.
4. When you fail to comprehend bookkeeping
Unless you’re in business as an accountant, you’re unlikely to be an expert at it. Doing it on your own can mean you may miss claiming GST paid back from the Australian Tax Office or deductions on your tax returns. Many people fail to realise that there are time limits specifying how long after an event you will be able to claim. Without comprehensive accounting experience, you may make decisions based on incorrect figures. This can have an adverse impact on your business. You must think about recruiting a professional and trained bookkeeper and Stones Corner tax agent.
5. When you are late to lodge returns
The Australian Tax Office is strict about late lodging returns. You can face fines of up to $850 for a late lodgement. And, if you are regularly late with your lodgements, hiring a bookkeeper becomes the obvious choice. It is worth noting that fines and penalties are not tax-deductible. Expert BAS and tax agent’s fees on the other hand are tax-deductible.
As your business expands it becomes wise to outsource some tasks. You should give consideration to hiring an expert Stones Corner Bookkeeper. As a business owner, you might have found it easy to manage everything when you started out, but it becomes difficult as the business grows. It is essential for you to focus on maintaining your business, you should assign other tasks to professionals who have the required expertise. And, bookkeeping is one such vital task that must be looked after by an expert bookkeeper.