Setting up a small business and nurturing it into a healthy business is fraught with several challenges. Most businesses comprise of multiple disciplines like finance, marketing, inventory management, stores, logistics and so forth. It is unlikely that the small business owners have adequate expertise in all disciplines through the success of the business itself will be guided by the level of efficiency in all the relevant disciplines.
Financial management is among the core functions of any business and proper bookkeeping is essential for the business owner as also to meet the statutory stipulations applicable in your state. Outsourcing bookkeeping from local companies, such as BAS Group in Victoria, is a great idea for small business owners since it puts that bit of extra time on their hands to focus on activities that can enhance revenues for the business through networking, meetings and by establishing a relationship with customers. This is particularly so when the business owner is not conversant with the nuances of bookkeeping and he is always dependent on someone more competent and qualified to do the job.
Outsource bookkeeping with the help of the digital world
The digital world has impacted our lives in more ways than one, and outsourcing work is a major benefit that we have from the digital world today. The seamless character of the digital world also makes it convenient to find competent professionals who are either close to your physical location or distanced by several thousand miles. If you devote a few hours of quality time researching the task of outsourcing your bookkeeping, you will be amazed at the options that are thrown at you.
There are also several freelancers offering expert services and you can carefully examine the individual profiles to determine suitable candidates before establishing contact with them. Cost is always a prime consideration for small business owners and freelancers often tend to be significantly more competitive compared to established businesses. It is important however that you have the ability to employ the additional time gained from outsourcing into other aspects of your business to enhance your revenues.
Advantages of bookkeeping for Australian small business owners
The bookkeeping function of your business is critical for several reasons. Your taxes and payroll need to be perfect and potential mistakes can be fraught with serious repercussions for your business. Improper filing, omission and mistakes in your tax returns can also attract penalties. Conversely, when bookkeeping is outsourced, the professional take charge and he/she is responsible to ensure that everything is maintained correctly and comply with the regulations in force.
Multitasking is fine, but…
Multitasking is fine but only when you are at home with what it takes to carry out all those tasks perfectly. You may execute 5 different tasks on a given day or month and 4 of them are perfect but one has gaping holes. Imagine the pain that the single task that was not properly done can inflict on your business. In such a situation, you have no one other than yourself to blame for the consequences. Therefore, multitasking can be good enough on a given day, and not as a routine. Each one of us has our own areas of expertise and focusing on that expertise is the best way to set up and nurture your small business
Some people simply do not comprehend the numbers
Lawrence is an exceptional computer hardware engineer and can rip open the most complex computers and bring them back to prime health within a reasonable time. He is also an expert in locating the trouble points and mending them efficiently. But, when it comes to taxes, collecting bills, following up with clients or filing returns, he is less than a novice. Imagine the additional time as well as the peace of mind he gets by outsourcing his bookkeeping. You don’t drive a car if you are not trained behind the wheels and in the world of business, bookkeeping also needs to be handled by someone who is qualified, competent and trained to handle the task. There are no exceptions to this.
Ability to hire competent people only for the amount of work you have
A constraint that operates while hiring employees for your business is that you do not have adequate work for the employee, during the early days of your business. Maybe, your growth trajectory is good and you are expecting a constant increase in workload. But, that also leaves the potential hazard of having to pay someone for no work also because things do not happen as planned.
Once again, you can turn to the digital world for help with hiring people by the hour. If your bookkeeping work can be accomplished in under 10 hours a month, you have the ability to hire a person for just that amount of work. In other words, you need not hire a full-time bookkeeper and pay him for as many as 28 days with no work!
What happens when the workload increases?
When you bring in more revenue from your business, it is obvious that your bookkeeping work also grows in tandem. Check if the person you hired for the 10 hours a month job can stretch and cater to your growing needs. If not, you can transition to another individual who has more time at his/her disposal and provides the same quality of work.
Is there a downside to outsourcing?
Honestly, outsourcing is not without its downside. Your outsourced worker may suddenly disappear although that is a distant possibility. If that happens, you could potentially be put to serious trouble and you may have to take time out from other productive functions of your business and get your bookkeeping back in order. Another aspect you should bear in mind is that most covenants that apply to a regular employee may not apply to an outsourced worker. But, then your outsourced worker is also running a small business of his own, and therefore these are only distant possibilities.Read More »