Bookkeeping and Record Keeping Basics

Proper bookkeeping is extremely important for the success of a business. If you do not do that, you’d be wasting your money. You’d also not be able to expand your business. The reason why you should design a proper bookkeeping routine is that bookkeeping enables you to manage your business and lets the tax agencies know about your business activity.

Bookkeeping softwares are used by some small scale companies to keep records of their accounts and financial dealings. You can also do that but to you have to be sure that it’s saving you time and you can focus on running your business. It happens that bookkeeping can be more efficiently handled on paper than on bookkeeping softwares that may not be that reliable.

For this purpose, you could hire a bookkeeper. I say, it’s best to hire an efficient bookkeeper for your business because this way you’d have someone to take care of all the financial records for you and help you understand everything about your business records. I have a few tips to give you on hiring a reliable bookkeeper.

Tips on Hiring a Bookkeeper

Unprofessional bookkeepers can cause serious damages to your business. You’d need to be sure that the person you’re hiring is able and can handle your accounts and financial dealings with responsibility. You’d need to know the following things before you hire a bookkeeper.

● First thing you should know is if your bookkeeper Melbourne has enough experience bookkeeping for businesses like yours. He should have a certificate IV in financial services. Professional bookkeepers are a member of one of the many Bookkeeping Associations in Australia.

● Your bookkeeper Melbourne should be able to create easy to comprehend financial reports.
● Make sure that your bookkeeper is comfortable with your accounting system. If not, do not work with him.
● Whether you need a part-time service or a full-time service, you should hire bookkeepers according to your need.
● See if he has a proper insurance or not.
● See how’s his review history. Reviews are not entirely reliable. But it’s okay to still look into them.
● Know where your bookkeeper Melbourne wants to work. Onsite, offsite or remotely.
● Be clear on what you want to pay him.

Your bookkeeper will keep the following basic records of your business for you while you concentrate on running and expanding it.

1. Revenues and Expenses

Your bookkeeper Melbourne would keep a revenue and expenses journal or a ledger to keep a record of the amount of money coming in, and going out and where it is going.continue reading…

2. Cash Expenditures

Bookkeepers account for the amount of capital spent on your business every year. There are two ways to do that. 1) Write a reimbursable cheque or 2)Keep a cash record.

3. Inventory Records

Keeping your inventory records saves you from pilferage. It also helps you keep track of buying trends.

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4. Accounts Receivable

This depends on how and when your customers pay you. If they pay you at the time of the delivery of the item, there’s no need of a accounts receivable tracking system. But it they are supposed to pay you later sometime, this is a must! This system helps you keep the history of what your customers owe you.

5. Accounts Payable

In easy words, it’s the opposite of accounts receivable. Keeping a record of what you owe and until what date helps create good credit.
You can look into the webiste, http://bookkeeperco.com.au/ for the best bookkeepers in Melbourne.

An Online Bookkeeper Can Be Your Most Valued Employee

An online bookkeeper can be your most valued employee and if you didn’t consider it before to start making use of an online bookkeeper, then you should maybe consider it. There’s many reasons on why you should rather make use of an online bookkeeper than hiring a bookkeeper on your payroll. Here some valuable reasons on why it is such a great idea for your business to have an online bookkeeper. Read more at http://yfsmagazine.com/2013/08/23/top-5-benefits-of-outsourced-bookkeeping-for-small-businesses/

You don’t have to train them

Training a bookkeeper in Melbourne takes time and lots of effort. And, then we don’t even talk about the money that you need for the training. If you have a bookkeeper on your payroll, you need to make sure that she understands everything about your business and about the latest bookkeeping technology that you can use.

If you’re making use of an online bookkeeper company like www.bookkeeperco.com.au, you don’t need to train them in anyway. They will have the necessary knowledge about the latest bookkeeping technology and they will have the knowledge about your company that other, normal bookkeepers won’t know.

Have expert advice right at your fingertips

Another great thing about making use of online bookkeepers is that you will have the best expert advice right at your fingertips. You don’t have to pay extra for someone to come and give your great advice about your business to make the books better, and to make your business grow.

Using online bookkeepers will let you have access to this service, for free. This is because you just need to pay one fee per month, and it includes all the services that the bookkeepers can provide to make your business grow. If you have any questions about your books and your financial status, you can just ask your online bookkeeper.

An Online Bookkeeper Can Be Your Most Valued Employee

You will have less errors

Do you really realize how many errors you or your bookkeeper make a monthly basis? Errors that can cost you lots of money and even some problems with employees that’s getting paid less than what they should get paid.

When you’re using online bookkeepers in Melbourne, you will have the service of qualified and really experienced bookkeepers. This makes the chances of getting any errors very slim. The less change there are to get some errors, the bigger the change is a successful and growing company. And, you don’t have to pay extra because you want to have the expertise of a professional and experienced bookkeeper.

An online bookkeeper can be your best employee for sure. It will not need more training, you don’t have to pay high salaries for their expertise and you will have all the advice, without paying anything. There’s many reasons on why an online bookkeeper is such a great asset in any business. There is just no comparison in making use of an online bookkeeper and having a bookkeeper in your company. If you don’t make use of an online bookkeeper in Melbourne, then you should most definitely think about hiring an online bookkeeping company for maintaining your books.