How to Handle Small Business Bookkeeping

If you've decided to follow your dream and set up a business on your own accord, then you may be ready to roll your sleeves up and tackle it head-on. You need to remain lean as you grow and thus you're ready to do all the "extra" stuff as well, like SEO and bookkeeping. Yet you really need to focus on what you're good at and outsource some of this critical work to a third party. Why do you need to bring in the help of a professional bookkeeper, as an example?

Time for Tax

The ATO will be delighted that you have joined the ranks of the self-employed and can now become an unofficial tax collector on their behalf. They will require you to keep very clear documentation to support all of your efforts and especially when it comes to filing paperwork like the GST and BAS.

Complex Task

You need to be an experienced lawyer or accountant to fully understand the intricacies of the tax code. Yet the government will not be willing to turn a blind eye if you make any mistakes and they will certainly levy fines and late penalties should you report incorrectly. This is why you need a bookkeeper to help keep all your affairs in order. They'll make sure that your financial details are up-to-date, that all of your paperwork is copied and filed correctly and will also be ready to help you, should you be the subject of an audit.

More Than Just Software

Certainly, there are many software tools that can help a small business owner with their bookkeeping work, but these are only part of the equation. You'll soon find out how much time you need to devote if you take this on yourself and you should calculate how much your time is actually worth if you're worried about the cost of a bookkeeping service.

Keeping on Top

During the course of a year, it's not unusual for the tax laws to change and sometimes with immediate effect. It can be difficult to keep up-to-date with any such change but a bookkeeper undoubtedly will. They won't need to take valuable time to research the particular process or to fill in some paperwork correctly, whereas you undoubtedly will. Once again, you should stick to what you do best and leave the experts to take care of the rest.

Don't Ruin Your Dream

You may have set up your business to earn some money from a product or service that reflects your expertise. Don't underestimate, however, how much additional stress you may suffer as you try to grow your business. You will need to try and alleviate as much of this as you can and this is another reason, therefore, to outsource what you're not good at to an expert.

Cautionary Tale

Many small businesses fail due to overwhelm and mistakes that could have been avoided. Think carefully before you proceed and bring in experts who can help you survive and prosper.