Deciding to choose a bookkeeper for a small business can be challenging but one of the best business decisions you will make
Bookkeeping is rife with deadlines, government legislation, statutory reporting requirements, acronyms that are almost impossible to remember and most challenging of all consistent change! The Australian Taxation Office (ATO) is constantly increasing the responsibility of businesses to provide accurate and regular financial information including weekly Single Touch Payroll (STP), Taxable Payments Annual Report (TPAR) for contractors, superannuation payments, BAS/GST reporting and more. Ensuring your data is correct and meeting the required timelines is one of the major roles of your bookkeeper.
As well as ensuring that your business is meeting its commonwealth and state government financial requirements it is in your best interests to choose a bookkeeper that is an expert in managing your finances. A certified bookkeeper is a valuable asset to you business. They keep their finger on the pulse and provide you with regular financial reports and information that you might otherwise miss. The more informed you are the better decisions you will be able to make as your financial information is crucial in all aspects of your small business.
In every profession there are the experts and then there are always the cowboys. Your business is your livelihood and your finances underpin everything you do. Make sure that you choose a bookkeeper that is qualified, adds value to your business, is trustworthy and communicates well. While you need to ensure that hiring a bookkeeper is cost effective you need to ensure that they have the relevant expertise. There has been instances where inexperienced bookkeepers have caused bigproblems for small businesses but with some due diligence on your part your relationship with your bookkeeper should be very successful.
So how do you determine which bookkeeper is going to be good for your business and is someone you can trust?
Here are a few steps that will help you on your way
1. Ensure your bookkeeper is qualified
The Australian Taxation Office (ATO) requires your bookkeeper to be a registered BAS Agent. They need to have a Certificate IV in Finance, have achieved 1200 hours of certified and supervised experience and be a member of a relevant professional body. They are also required to undertake prescribed training each year.
When you are hiring a bookkeeper for a small business make sure they are certified and that you have a list of bookkeeper interview questions that relate to your business sitting beside you. To ensure they are a certified bookkeeper ask them to provide you with their BAS Agent registration details or go to the Tax Practitioners Board (TPB) and search their details.
2. Ensure your bookkeeping is adding value to your business
Your bookkeeper knows your finances intimately. They process your data, lodge your statutory reports and keep you updated with information to help you manage all aspects your business. They provide you with a host of professional benefits including access to technology that provides real time reporting, data accuracy giving you peace of mind, having credible records if you are investigated by the ATO at any stage, improving business systems and procedures and helping you develop success in your business.
Work with your bookkeeper to identify what information will provide you with your tools for success. They will be able to present you with a scheduled reporting package that will meet your needs.
3. Ensure that your bookkeeper is trustworthy
Your bookkeeper should always ‘have your back’. They see all the details of all your financial transactions so it is very important for you to feel comfortable with them and that you both build an ongoing relationship based on genuine trust and respect. Hiring a certified bookkeeper goes a long way to ensuring that they are ethical and reliable. BAS certification is managed by the TPB and all certified bookkeepers are regularly reviewed. They are required to have Professional Indemnity (PI) insurance, maintain a training schedule and keep their personal and financial credibility current. Click here for more information.
It is recommended that your have a contract and a Confidentiality Agreement with your bookkeeper. Your bookkeeper will be able to provide you with both of those via their professional body. Also make sure they provide you with their BAS Agent registration details and current Xero or MYOB certification.
4. Ensure that you have open lines of communication
Open communication is always the road to success. Your finances should always underpin your business decisions. Your bookkeeper can assist you by sharing ideas with you including financial planning strategies, increasing revenue, rationalising expenses, etc. With your understanding of the overall goals, strategies and operations of your business and the expertise they provide, you will be able to grow your business while keeping costs under control. While they provide you with reporting and financial data they can also discuss and explore improvements with you around business systems, compliance and software. They can also help develop financial policy and procedure.
It is important that your bookkeeper provides you with information in a manner that is easy to understand and relevant. Your questions should be answered readily and quickly. Some queries may need further clarification. A certified bookkeeper will have the capacity to do this for you.
5. Ensure that your software is right for your business
When choosing the accounting package for your business your bookkeeper’s expertise will be invaluable. Most bookkeepers have their own software preference however each software program has its own strengths and weaknesses. It is important for your business that you are being directed to the most appropriate software for your needs. Each accounting package also has a range of products to fit the size of your small business. When you are starting out you may only need a small package that is simple and cost effective. As your business grows you can easily upgrade into larger packages and use more complex add-ons to improve productivity.
A experienced bookkeeper will be able to discuss your requirements with you and give objective feedback on the pros and cons of the software packages available and the costs involved. There are also many add-on solutions available, that for a small fee will streamline your business efficiently and effectively.
6. Ensure that your bookkeeper is giving you value for money
A very important question you will be faced with when making your choice is how much does it cost to hire a bookkeeper. Different bookkeepers offer different services and costs that can be quite confusing. Some bookkeepers charge by the hour, some in blocks of time and some offer a variety of set packages to choose from. Also certified bookkeepers may charge different prices for similar services. They may determine this by their experience, qualifications, their standing in the business community or whether they employ staff or have an office suite. Undeniably Covid19 changed the way in which businesses work today and still remains a consideration that we all must face. One of the things that was impacted the most in the finance industry was the rapid development of online accounting packages. Many bookkeepers work from a home office these days and will either meet online with you on a platform like Zoom or visit you at your premises. While this could definately be a cost effective solutions for you it can also provide efficiency gains by freeing up your valuable time.
The structure and requirements of your business will determine the bookkeeper that is most appropriate for you. There is really no right or wrong and it will come down to your own personal choice. If you would like to discuss the different options available to you and which would best suit your small business. Click here to organise a free consultation today.
Your certified bookkeeper is as much a part of your business as you or any other staff member.
When you choose your bookkeeper make sure you like and trust them, and they speak your language.
Great bookkeeping will add value to your business and give you the freedom to manage and improve your business.