Basic Bookkeeping, It’s one of the universal realities of being in business … you will have to do things that are far from your core skill set, have nothing to do with your products and services, and really don’t inspire you! Along with marketing, networking and website maintenance, keeping the books is one of those universal jobs that few people find comes naturally to them.
Engaging a service to do basic bookkeeping makes good sense – but exactly what services can you expect them to provide? We look at the 5 core components of any good bookkeeping company.
Accounts Payable and Receivable
This is one of the most universal of all the basic bookkeeping functions – all businesses need to buy things and be paid for the things they supply. You can expect your bookkeeping company to do things like:
Set up an invoicing system
Track the status of payments
Identify problem payers from among clients
Pay your bills promptly
Payroll and PAYG
This is one of the most heavily regulated sectors in bookkeeping, and what you have to do to comply often changes from year to year. Payroll law is something that really doesn’t interest many business owners, and you can expect any good bookkeeping company to provide both payroll and PAYG administration.
BAS Preparation and GST compliance
Though the system has been in effect now for well over a decade, GST law is still something that doesn’t come naturally to many business owners. Depending on your particular business, there may be specialist taxes that you need to account for, such as the wine equalization tax and luxury car tax.
A good bookkeeping company can handle your Business Activity Statements, help you keep up to date with GST obligations, and identify any problems with your system or records before they become unmanageable.
Even sole traders and partnerships can benefit from the help of a basic bookkeeping service in maintaining superannuation records for themselves; for businesses that are employing people though, professional assessment is critical. Your bookkeeping company will manage aspects of superannuation obligations like:
Amount and regularity of contributions
Ensuring super fund eligibility
Provide your employees with a choice of super fund
Calculating the superannuation guarantee charge
Profit and Loss Statements / Balance Sheets
It can be impossible to get an accurate idea of where you business is positioned financially by looking at the fine details. Even if you are the one paying the bills and doing the invoicing, Profit and Loss statements, or a balance sheet, help keep the big picture in mind.
A professional bookkeeping company can generate these in a way that makes it simple for an accountant or other qualified financial adviser to import the records into their system, and offer advice on the bottom line. Make sure you have an understanding of basic bookkeeping so you can liaise with your bookkeeper.