There are various misconceptions about small business bookkeeping services. When you are looking for a bookkeeper for your company, then you may hear some positive things about a bookkeeper and negative things as well. Experienced and professional bookkeepers bring specialties to help businesses to keep an eye on financial transactions.
Professional bookkeepers offer various services, including cash flow management, tax compliance and much more. Even with various services they offer, some myths about bookkeeping for small business have been passed from one to another generation.
We hope, with this blog, we disprove those false conceptions about bookkeepers. Keep reading the following points to know what common misconceptions about bookkeeping are:
Common Misconceptions about Small Business Bookkeeping
Take a look at the following section to know some common false assumptions about bookkeeping:
- It is Data Entry Job
The bookkeeping profession is not all about data entry, in fact, a bookkeeper does more than clerical tasks. Experienced bookkeepers perform various tasks, such as:
- Internal auditing
- Taxation
- Payroll processing
- Cash flow management
- Preparation of financial reports
- Manage accounts payable
- Manage accounts receivable
- Recording all financial transactions
- Reconcile bank accounts
So from the next time you hire bookkeepers, and then make sure to listen to them to know what services they offer because bookkeepers don’t only do entry tasks.
- You can Do It Yourself
Now, you know, bookkeepers do lots of tasks, and it is not only a data entry job. If you are thinking of a DIY approach, then it might be easy in the starting days of your business, but when your business starts growing, then you may not be able to manage bookkeeping tasks on your own. Bookkeepers of Melbourne can help save you the time that you spend on bookkeeping tasks.
Suppose the time that you invest in bookkeeping tasks, you invest in other business tasks, then you can contribute to your business growth. - No Need of a Bookkeeper If You have Accounting Software
This is one of the top misconceptions in the bookkeeping profession. Many business owners think that accounting software can help them, and they don’t need to hire a bookkeeper or an accountant for their business.
If you think this, even then, you may need to take help to set up your transaction accounts and tax rates, etc. Bookkeepers of Melbourne know what is going on in an accounting system, and they can help you understand why they label the expense account as “Expenses” and an income account as “Income.” - Accountants are Better than Hiring Bookkeepers
Bookkeeping and accounting both professions are important to run a business smoothly. Accountants are responsible for preparing the company’s financial statements and auditing, on the other hand, bookkeepers are responsible to provide raw data to accountants to perform such tasks. But it doesn’t mean bookkeepers are less important than accountants. - You Need them During Tax Season
Basically, bookkeepers in Melbourne don’t file your taxes. But, they help close the books and prepare financial statements for your accountants during tax season. If bookkeepers manage the books all year, only then, they can help accountants to prepare taxes easily. If you hire a bookkeeper during tax season, then it would be difficult for a bookkeeper too to manage and organise your books.
Bookkeepers are important during the tax season, but it doesn’t mean you hire them at the end of the year. But you should hire them at the start of the year. - Only Large Business Needs Bookkeepers
Another misconception about bookkeepers is that bookkeeping for small business is not required. Business size doesn’t matter while hiring a bookkeeper. No matter whether your business is small or large, businesses at every stage need bookkeeping services.
Bookkeeping is important for the long-term growth of the business and helps you to make the right business decision based on your business books. - Accounting Software can Perform Bookkeeping Tasks
If you think accounting software is enough to perform your bookkeeping tasks, then you are wrong here. But accounting software will need daily inputs from your side. With the help of the bookkeepers of Melbourne, you can stay organised. No doubt, the do-it-yourself approach is beneficial but during the early days of your business. When your business starts reaching its goal, then you have to take help from a bookkeeper and an accountant.
Over to You!
Before you hire a bookkeeper, you may hear lots of negative things, but it is your responsibility to consider each point before making any decision. Being a business owner, you won’t be able to perform bookkeeping and accounting on your own because you have other tasks to perform for the growth of your business. So, it would be a smarter decision to hire a bookkeeper in Melbourne for your business, and for this, you can reach Reliable Bookkeeping Services.