There’s a reason why bookkeeping itself is an industry. With so much red tape to wade through when owning your own business – and specific business accounting guidelines to follow with little room for error – it’s no wonder so many new business owners pass the bookkeeping baton to external companies that specialise in business accounting and bookkeeping. When you hire a bookkeeper, or request the services of a company specialising in bookkeeping services, you can rest assured that your business accounting is being done properly and to government specifications. So, put down your pencil, switch off your calculator, and have a look at the five reasons to hire a bookkeeper.
Many business owners without formal accounting and business tax training will agree that doing your own bookkeeping is a challenge. One miscalculation or oversight and the business could be slapped with a hefty fine – something your cash flow really could do without. When you hire the services of a formally trained and dedicated bookkeeper, you are entrusting an individual – or a group of individuals – with your business accounting responsibilities. If there’s an error in your bookkeeping, it becomes their problem and you can hold them liable.
Even the most thorough business owners will forget to save a small business purchase slip here and there. While you might not see it as too big an issue at the time, you really don’t want to be explaining to the tax man why your business expenses don’t add up come financial year end. When you outsource your bookkeeping functions to a business accounting firm, you gain access to sound bookkeeping advice and pointers to assist you with keeping track of your expenses on a day-to-day and month-to-month basis.
In this marvellous age of cloud computing and online information storage solutions, many of the more tech-savvy business owners feel safe relying on foreign servers to store their important documents such as bank statements. While it might be deemed less eco-friendly than one would like, keeping a physical paper-based filing system is still the best way to go when it comes to business bookkeeping. Some institutions only allow you access to your online records for a limited amount of time, so ensure that you don’t lose vital business information by handing your bookkeeping filing system procedure over to a bookkeeper.
One thing many business owners forget when they first attempt to perform their own business bookkeeping functions is that SARS has little tolerance for error – especially on business tax returns. If you fail to correctly present the amount of sales your business has enjoyed, or the amount of payroll tax owed, you could land in some serious hot water! Outsource your bookkeeping functions and ensure that your details and figures are double, triple and quadruple checked before being submitted to the tax man.
A booming business is often the reason business owners neglect their bookkeeping duties. The initial years of being in business are often overwhelming, but failing to get on top of bookkeeping from the start will only lead to more stress and panic down the line. By aligning your business with a reputable bookkeeping services provider, you can focus on building your business – instead of wasting your precious time on crunching numbers and trying to decipher faded receipts. This way your bookkeeping remains on trend with best practices, and financial year end will be just another day at the office.
Do you own a business? Is bookkeeping a headache you’d rather leave to the experts? Get professional bookkeeping services and business accounting solutions with RBK Business Accountants!