Bookkeeping - Why it should be outsourced?

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Australian Bookkeepers Network
Bookkeeping - Why it should be outsourced?
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Proper bookkeeping is very important to maintain
the consistent growth rate of the company. As a
matter of fact, it is the bookkeeping department
that discloses the actual status of the
organization in the market. With genuine
bookkeeping help, you not only avail a good
resource for the functioning of your statistical
data, but it also gives you valuable advice for
better execution of your finances whenever
required. It takes time to look after your own
books. Trying to understand the accounting
software programs can be a frustrating experience
for some small business owners, in spite of the
fact that most of the new ones are now very
user-friendly such as Simply Accounting. There
are two forms of seeking bookkeeping help. One is
manual and the other is computerized. Mainly
small companies with less workforce and low
number of transactions take the assistance of
manual accountancy. On the other hand, big
organizations with huge data, information
transfer mostly opt for the computerized
bookkeeping.
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A lot of small business operations are just too
small to justify the employment of a full-time
bookkeeper. The bookkeeping function is merged
with a variety of office procedures as well as
receptionist duties. The problem with this
arrangement is that the bookkeeping is not
completed accurately. The employee is distracted
from the input process and quite often errors are
made. These omissions end up costing money during
the year-end accounting process when the
accounting firm is preparing financial statements
and tax returns. There is also the danger of
incorrect allocation of disbursements which may
be overlooked by the accountant and could result
in tax re-assessments. The turnover of staff
makes it very expensive for a small business
owner to repeat the training process of
bookkeeping staff. Also, the owner does not have
the bookkeeping skills to carry out the actual
training. The lack of bookkeeping skills by the
owner makes it very difficult to supervise the
bookkeeper's work.
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The level of expertise in a bookkeeping firm can
be greater than the skill level of an employee
thus affording a more valuable overview of the
small business bookkeeping system. There is a
greater chance that better bookkeeping procedures
will be put in place thus resulting in more
accurate reporting. There can be significant
cost savings by outsourcing your bookkeeping to a
competent bookkeeping service. A small business
owner may only need a few hours of bookkeeping
support thus bringing down the bookkeeping fee to
the 200 per month range. This amount is no way
near the thousands of dollars per month for a
full-time employee. The payroll costs alone would
exceed the 200 per month.
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The disadvantage of outsourcing means that the
small business owner has to wait for the
designated date to get his or her bookkeeping up
to date. Also, the original receipts have to be
organized for the bookkeeper and sometimes
delivered to an off-site location. The receipts
not being available can be inconvenient when
needed by the small business owner. In some cases
a system of scanning the receipts and setting
authorization for the bookkeeping firm to review
banking transactions online can expedite the
receipt delivery process. Bookkeeping in
Australia is very often ignored by the small
business owner and not kept on a current basis,
thus causing late filing of sales tax reports and
resulting in the late filing penalties. The
hiring of a bookkeeping firm can avoid this
problem. Every small business owner should
carefully review his or her bookkeeping needs and
decide on the best course of action.
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Thank You
Australian Bookkeepers Network Email Us
info_at_austbook.net http//www.austbook.net Call
Us 1300 856 710