Efficient bookkeeping is essential to track your business performance and key point indicators (KPI’s). You need to have correct figures to understand how your business is performing in relation to your competitors and to keep up with your industry’s tax and compliance obligations. Bookkeeping involves different aspects such as invoicing, bills, payroll, transaction coding and bank reconciliations and it can quickly become exhausting handling the overwhelming number of bookkeeping tasks. Skill and expertise are required to produce accurate reports such as the business activity statements, profit and loss, balance sheet and job costing reports. Trade business owners are busy juggling work projects and employees; and to help reduce the burden of administration and bookkeeping tasks, the best alternative is to outsource these tasks.
This article details the top 6 benefits your trade business will gain when you decide to outsource your bookkeeping function.
Increased Efficiencies
Your time is key in the business. If you’re spending time completing bookkeeping tasks, you may be depriving yourself of time that can be spent growing your business, making crucial business development decisions, servicing clients and/or managing your team.
Having a qualified bookkeeper will ensure efficient bookkeeping processes with minimal errors. In turn, this will save you money as the bookkeeping function will be completed efficiently, and the accountant will have fewer adjustments to make if everything is recorded correctly.
Cloud-Based Bookkeeping System
Modern accounting firms such as Tradies Accountant, streamline your process by making use of online-based software. Apart from minimising paperwork, the best feature of a cloud-based bookkeeping system is being able to access your records at the same time as the bookkeeper from anywhere in the world (where you have access to the internet).
This online cross-collaboration allows the outsourced bookkeeper to instantly record your income and/or expenses. It gives you the option to view your updated reports including any new transactions. In the background, your bookkeeper can continue handling your day-to-day affairs even whilst you alter and review information.
Supplementary Service
The outsourced bookkeeper will get to know the flow of your business as they perform routine bookkeeping tasks. Additional jobs can be asked of a bookkeeper to help you establish the position of your business and forecast the cash flow for the next month to a year. Ad-hoc reports and reports designed specifically for your business. Whether you’re in a cash flow crisis or in the spur of growth, detailed reporting will provide information with which you can use to make sound decisions for your business.
Job Costing
Measuring the profitability of each job is imperative for builders and contractors. If you are utilising a bookkeeper, they can assist in setting up processes required to start job costing. Once the processes are correct, then you can consider the value of using job management software.
Informed Decisions
Successful business owners make decisions backed by accurate data. Financial intelligence is the backbone of business decisions that change the trajectory of business resources.
The financial information produced will enable you to make better decisions in your business. It will assist in all areas, such as marketing, sales and investment. Accurate data will enable you to make decisions and decide where costs can be reduced for improved profit margins, whether a new employee can be hired or if a new plant and equipment item can be purchased.
Prompt Service
Outsourcing is a business solution for survival, saving and convenience. Factors that are out of control such as a pandemic and lockdowns and/or natural disasters won’t affect the bookkeeping function of your business as it’s completed online.
Bonus Benefits
- You’ll save dramatically on payroll and operating costs, therefore leaving you with a bigger budget to spend on the growth of your trade business.
- Preparing for tax season becomes effortless. An outsourced bookkeeper will simplify the tax preparation process and ensure that you’re in full compliance. Not to mention that they’ll take advantage of available tax deductions.
- As your business grows, you won’t have to re-hire talent that can keep up with the new challenges faced by your trade business. Upgrading your bookkeeping package grants your business the capability to expand your business further.
At Tradies Accountant, you’ll get industry-leading bookkeeping packages that help you to smoothly transition your trade business to a new level. We’re invested in assisting in the growth of your business. You’ll gain all the benefits stated above and more when you outsource your bookkeeping with us.
Get started on saving time and money in your business by contacting us today!