Should a Small Business Use a Bookkeeper All Year Round?

Published on May 05, 2023

Business owners typically want to maximise profits by cutting down on expenses. They would opt to do the bookkeeping themselves rather than hire a bookkeeper. If this sounds like you, remember that doing everything on your own will only make you and your team’s life harder.

So should a small business use a bookkeeper all year round? Yes – hiring a bookkeeper saves you more time, money, and resources. A professional will save your business from costly errors and missed deadlines. Keep in mind that the frequency of outsourcing virtual bookkeeping services depends on your unique needs.

Why Businesses Should Start With a One-Page Business Plan

It’s tough finding the time to sit down and write a comprehensive business plan – only to find out that you aren’t going in the direction you were hoping for. That’s where a one-pager comes in.

A one-page business plan allows you to capture the essence of your business without drowning in the details. It keeps your vision and objectives front and centre. It trims the fat and focuses on what truly matters.

Plus, the short and sweet nature of a one-pager makes it the perfect complement of a sales pitch. A one-pager is easier for others to understand, which can be a big help when you’re looking for potential investors, partners, and stakeholders to put money behind your business idea.

Why Your Small Business Most Probably Needs Help with Bookkeeping All Year Round

Entrepreneurs thrive on the DIY spirit: Do everything yourself, and don’t spend a dollar unless absolutely necessary. It can be especially hard to justify the costs of financial help – like outsourcing to a bookkeeper – if it looks like you can’t afford any more expenses. But the thing is, with a growing business, you can only handle bookkeeping on your own for a limited period of time.

Everyone in the Australian market is focused on making their business more competitive and profitable. And one of the most important tools in a business toolbox is the bookkeeping service. Bookkeeping shouldn’t be handled by anyone other than a bookkeeper, the same way legal matters shouldn’t be handled by anyone other than a lawyer.Related article:Small Business Tax Deductions in Australia

1. As You Business Grows, so Do Your Needs

As a small business owner, it’s crucial to recognize that your financial needs will evolve as your venture expands. By getting bookkeeping services all year round, you can ensure that your financial systems grow in tandem with your business. This, in turn, allows you to focus on strategic planning and decision-making, without being bogged down by day-to-day financial tasks. An all-year-round bookkeeper will also develop a deep understanding of your business. They can spot trends and patterns in your financial data, monitor cash flow closely, and mitigate any risks. This helps prevent financial errors from slipping through the cracks. As your business grows, so do your tax obligations and regulatory requirements. By having a bookkeeper all year round, you can be confident that your business remains compliant with the Australian Taxation Office (ATO) and other relevant regulatory bodies. This will save you time, money, and potential headaches from non-compliance issues.

2. Make Data-Informed Decisions

No matter how hard you work to generate leads and nurture clients, you’re not going to make more money if you’re not making more in your bottom line.

Bookkeepers can give you a level of insight that no layman can. They’ll transform your financial data into actionable recommendations that just make sense. This way, you’ll be empowered to make decisions that are grounded in reality and backed by solid data, ultimately improving your chances of success in the competitive business environment.

3. Optimise Your Budget

Bookkeeping isn’t just about adding sales then subtracting profit. They also create a financial roadmap that leads to business success. For example, with an optimal budget in place, you can plan for future expenses without relying on guesswork.

A good bookkeeper takes into account all aspects of your business – including revenue, expenses, and cash flow – throughout the year. By doing so, they can identify areas where you may be overspending and recommend adjustments so that your budget remains realistic and achievable. You need this type of financial discipline to grow and thrive.

4. Accurately Map Out Business Goals

With no bookkeeper to help you analyse your data, you may end up disappointed if you don’t hit the growth goals you previously set.

A bookkeeper’s expertise can be instrumental in helping you accurately map out your business goals and develop a viable strategy to achieve them. They’ll track your progress all year round and implement more effective goal-setting processes.

Your books of accounts should be the least of your worries when you’re preoccupied with messaging prospects, serving existing clients, and improving your products or investors. When you trust your bookkeeper, you’ll realise how good it feels to have one less thing to worry about.

5. Get Investors

Investors may not be top of mind for you right now, but should the time come, it’s best to be prepared. Having a reliable bookkeeper all year round will instil confidence in potential investors, increasing the likelihood of securing the funding you need to get your small business to the next level.

A bookkeeper can also prepare financial projections and cash flow forecasts, which are often required by investors. These projections provide a compelling case for investment by showcasing your business’s potential for profitability.

6. Get Extra Piece of Mind

You can rest easy knowing that your books are accurate, taxes are filed on time, and your business isn’t drowning in debt. You can dedicate more time and energy to business activities you genuinely enjoy.

7. Learn From the Tax Pros

Whenever tax season comes around, I hear many business owners talk about how they’re scrambling for files and updating their books. As a bookkeeper for over a decade, that always hurts my soul a little bit because it shows that business owners don’t understand why they should regularly check-in with their finances.

I could go on and on about why you need bookkeeping services all year round, but that would be a bore to read. Instead, I want to remind you that a professional bookkeeper can teach you a lot more than you think about your business’ finances. They’ll help you make smarter decisions, how to minimise tax liability and maximise returns, as well as improve the cash flow of your business.

With an all-year-round bookkeeper, you’ll never have the taxman breathing down your neck.

The Bottom Line

When you’re handling a small business, you don’t want any big surprises (unless it’s skyrocketing profit, of course). Outsourcing your bookkeeping to a team of professionals gives you the time of day to focus on what you do best – making your business offerings better for your clients.

If you’re seeking cost-effective and reliable bookkeeping services, look no further. The Bookkeeping Studio will be your partner in everything – from finances to taxes, except crime. Take your small business to the next level today.

About the Owner

Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.

I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.

Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.