Keep your focus on driving core business
A business needs the attention of its founder, including attention to growing the idea into a viable product or service. That means that, as that founder, your time should be devoted to strategy, marketing, funding and other key areas that require your focus over the daily operational tasks of a business.
Let someone else handle what you don’t really understand
Chart of Accounts, STP, PAYG, BAS – what are these terms? Not many business owners have backgrounds in finance or even a working knowledge of accounts payable, accounts receivable and taxes. It’s better that a professional who took courses and was certified in these areas handle those aspects of the business.
That way, mistakes will be less likely, as well as issues that could cost you more money. Remember, if you miss a bill or forget to pay something important, this will significantly impact your business credit.
Create a work-life balance
While you could focus on core business needs and handle everything else in your start-up, the problem is you’ll have no time left at the end of the day or week for yourself or your loved ones. Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out.
Get a different perspective on the business
Although you may believe you have a good idea about the state of your business, it helps to have another pair of eyes on this.
Your bookkeeper can put the financials in order and run reports showing how you are doing each month, where the funds are going and how your efforts are paying off (or might need improving upon). You will be given the “big picture” through the numbers being crunched.
Ensure ATO obligations are met
The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. Depending on the type of business structure you have, you will require various tax requirements, including tax payments, GST calculations, PAYG and IAS, TPAR for subcontractors and STP for payroll.
Resolve conflicts of interest with any business partners
With more than one business partner, issues could arise where each partner has some idea of how the money should be spent and how to easily access it. Otherwise, conflict could arise that could impede the direction of the business.
That’s why a bookkeeper should be the gatekeeper of the money, creating the necessary approval processes that stop partners from just withdrawing money.
Your accountant is performing bookkeeping duties – but charging you accountant fees
An accountant is more qualified than a bookkeeper and will charge accordingly and usually higher than a bookkeeper, who is also qualified. Big firms could also be off-shoring the bookkeeping to an overseas offshore finance department. They are accessing your information and taking away jobs from hard working Australian professionals.