Bookkeeping is the day-to-day record of what comes in and what goes out. Well-run businesses rely on sound bookkeeping so their owners and managers can see where profit and growth are heading.
If you're new to business, or paying the price for neglected books, you have two choices: an in-house bookkeeper, or an outside one. Weigh the pros and cons first. For most small businesses, the pros win.
How to outsource your bookkeeping
Start with your accountant, who may offer bookkeeping or work closely with a bookkeeper. Decide which services you need, then agree the process, the fees and how you'll communicate before you sign anything. Check that anyone preparing your activity statements is a registered BAS or tax agent.
The pros
- It's off your plate. Experienced people handle your paperwork and receipts, keep them filed and tell you about anything that needs attention.
- It costs less than a full-time role. You pay for the work you need, and the help is easy to find.
The cons
- Communication takes more effort. An outside bookkeeper isn't down the corridor, and a full-time bookkeeper gets to know your business well. Agree how and when you'll talk, and stick to it.
- They aren't always available. You may need to book time for updates. Regular reports and a set meeting each month or quarter help.
Talk to your accountant about whether outsourcing your bookkeeping suits your business.