The role of bookkeepers and accountants has not changed despite the introduction of high technology as well as automation in business accounting. Businesses still rely heavily on bookkeepers, who are responsible for monitoring and controlling finances, the lifeline of any business.
Any stress on finance can negatively impact business performance which is why bookkeepers are in high demand because of their abilities to help business owners know the financial status of business at any point in time. Regardless of the size of business, you would need someone to look after financial status for which you must hire the services of a qualified and certified Xero Software Bookkeeper. The bookkeeper performs his or her tasks and duties by using some software that automates business accounting processes.
Why you need a bookkeeper?
Having a tab on the cash flow is essential to make businesses thrive for which you must depend on the expertise of bookkeepers who monitor cash on day to day basis. The bookkeeper is responsible for following the best practices in bookkeeping. Although bookkeepers are part and parcel of accounting, they are not accountants, even though people often think that both are alike. Bookkeepers are essentially the watchdogs of company finances as well as responsible for highlighting the financial status of the business. They are the record keepers of business and accountants use the records to extract information for taking decisions and revising business strategies to take the business forward. While accountants might perform the duties of bookkeepers, it is always better to entrust the responsibility with bookkeepers only.
The role of bookkeepers
Bookkeepers are financial record keepers of business. They use documents like invoice and receipts to record cash flows and even prepare tax documents and pay wages. They are responsible for managing accounting systems and payroll as well as issuing invoices, receipts and managing other financial transactions. Managing loans and debt payments, preparing financial statements and preparing as well as lodging BAS as per Australian rules is their responsibility. They also help to prepare a business forecast.
Bookkeepers are early recruits for any business
Bookkeepers have their roles cut out right from the time of launch of business which is the reason why companies hire bookkeepers first before recruiting other people. You can engage a freelancing bookkeeper who works on an hourly basis because during the start-up phase they would have work for just a few hours. You can consult an accountant to set up the legal and tax structures of business as required while the bookkeeper with look after the day to day functioning of business with respect to the financial transactions. Work out a working arrangement with the free-lancing bookkeeper with whom you can work remotely. Working online with bookkeeper helps to reduce the cost of business overheads.
Once the business gets going, you would need a fulltime bookkeeper that you may hire or even think about outsourcing the bookkeeping activities with companies that offer bookkeeper services.