Running a small business can be less complicated when you have a few clients, and everything is easily manageable including job scheduling and making payments for raw materials and tools. However, keeping track of these small daily transactions will start requiring more of your time as your business grows.
Here are 4 signs that your Trade business needs a bookkeeper
1. Your business is growingThe more your business grows, the more time you need to focus on service delivery leaving you with less time for other tasks such as reconciliation or bookkeeping. A growing business is a good thing, it usually means more money in the bank. However, not understanding how the money is being used up within the business can lead to cashflow problems. Bookkeepers can keep your receipts, invoices and payments in check so that you do not overspend and stay within agreed budget.
2. Growing pile of documentsTrying to keep up with bookkeeping after working all day or all week could become difficult as you might need rest and time with the family. As soon as you start postponing your bookkeeping duties to the next day, it will only lead to a growing pile of paperwork. A bookkeeper will ensure you have the right financial checks and balances to keep your business on track while reducing the paperwork that you need to do.
3. You always rush to meet BAS deadlineWhen you are constantly busy and find yourself rushing to meet BAS deadlines then you might need help. According to the ATO here are some BAS and GST record keeping tips:
- Keep records of all sales, fees, expenses, wages and other business costs
- Keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims
- Reconcile sales with bank statements
- Use the correct GST accounting method
- Keep all your tax invoices and other GST records for five years
A bookkeeper can ensure that all the above documents are in order and available when needed. Engaging an experienced bookkeeper will also ensure that you meet your ATO obligations on time, avoiding late fees or penalties, and save interest on payment arrangements.
4. You think a Bookkeeper is expensiveIn a time when small businesses are trying to save money and increase profits, many small business owners might think that an outsourced bookkeeper will only lead to an increase expense. However, at Tradies Accountant, we provide affordable professional bookkeeping services tailor made to your needs. Having an outsourced bookkeeper can add value to your business by keeping track of your debtors, improving the cash flow and making reminding you to make payments when they are due.
Tradies Accountant is a team of experienced accountants who all specialise in bookkeeping, accounting and quarterly consulting services for trade businesses. We focus on processes that will make your life easier while growing your business, so that you don’t have to worry about your finances.