A professional bookkeeper not only helps you with business finance management but they are also responsible for helping you reduce your tax liability by working with your accountant. Therefore, finding the best bookkeeper and maintaining a robust relationship with them is essential. Now the question arises, how can you get the most out of your bookkeeper? Let’s know the answer:
4 Ways to Get the Most Out of Your Bookkeeper
The following are a few ways you can use to get benefits from your bookkeeper:
Let Your Bookkeeper Manage Your Business Books
It might feel difficult at first when you give access of your business books to your bookkeeper. As a result, you can better focus on your business strategy to grow your business rather than spending your valuable time managing your business books. The bookkeepers are trained to prepare bank reconciliation statements, and financial reports and can better take care of your payroll. When you receive support from a bookkeeper, be clear about what your bookkeeper will do for you. As you grow, you can assign more tasks to your bookkeeper.
Allow Your Bookkeeper to Do Your BAS
Most bookkeepers are also BAS agents. Your bookkeeper knows how to manage business books effectively and can simplify the process of creating your BAS. Your small business accountants can check in to ensure everything is accurate.
Use the System Suggested by Your Bookkeeper
Your bookkeeper may suggest you use Xero, MYOB, and QuickBooks. These systems track expenses and income easily. Your bookkeeper will use this software to issue and reconcile bank statements, create reports and help you share this information with your tax professional.
Let the Bookkeeper and Accountant Work Together
It is important to let your bookkeeper and accountant work together. Prepared financial reports by your bookkeeper will be helpful for your tax accountant at the time of tax return lodgment. That’s why clear communication between your bookkeeper and accountant is crucial. As a result, your accountant will give you better tax advice because they can access the information they need.
How a Bookkeeper Can Help Your Business?
Now, we’ll discuss how your bookkeeper can help you simplify your bookkeeping processes.
Manage Your Financial Documents
It is crucial to keep your financial documents, such as receipts, invoices, bank statements, and payroll records organised and readily accessible. By following a systematic approach, you will be able to access and accurately record information when required.
Separate Personal and Business Accounts
To ensure accurate recording of expenses and income related to business, it is crucial to maintain separate bank accounts and credit cards for personal and business transactions. This separation is helpful for removing confusion and streamlining year-end tax preparation.
Accurate Chart of Accounts
Develop a chart of accounts that is tailored to your business needs. This framework divides and manages financial transactions accurately, allowing accurate reporting and analysis. It offers an accurate structure for recording income, expenses, assets, and liabilities.
Track Business Income and Expenses
A bookkeeper will be responsible for tracking and recording your business income and expenses. This includes sales, purchases, overhead costs, payroll, and any other financial transactions. They will reconcile your bank statements to make sure that all financial transactions are recorded accurately. Based on your business type, you should consider reconciling your bank statements weekly or monthly.
Cash Flow Management
It is important to monitor the cash flow of your business. Your bookkeeper will pay attention to the inflow and outflow of cash to estimate and identify any cash shortages on time before it’s too late. It will allow you to make informed business decisions.
Stay on Top of Tax Regulations
Bookkeepers in Melbourne and accountants will help you stay on top of tax regulations relevant to your company, such as PAYG withholding, GST, payroll tax, and other obligations.
Conclusion
If you have a professional bookkeeper by your side for your business, then you can follow all of the above-mentioned tips to get the best out of your bookkeeper to improve your business books. You can also get in touch with a Reliable Bookkeeping Services provider to stay on top of your business books.
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