Is Bad Bookkeeping A Big Deal?

For small businesses, getting a bookkeeper is considered another big expense. Perhaps you have never considered the serious impact of bad bookkeeping on your business. However, if you are going to see the big picture, you will realise that it is indeed necessary to have someone to handle the financial aspect of your business properly. You may not easily realise the problem that bad bookkeeping creates but once you see your financial statement in chaos, you will know how important good bookkeeping is.

Why you should invest in a good bookkeeper?

•    It gives you peace of mind.  You have nothing to worry about knowing your finances are in good hands. Having someone who has full understanding of your finances can give you an assurance that you will not be going out of business. Although a bookkeeper executes simple procedures such as record keeping, it has a huge impact on the outcome of your business.

•    You can put your business in proper perspective. When you cut cost on hiring a bookkeeper, you will realise in the end that have not really saved money, but accumulated additional expenses. With a good bookkeeper, you will be able to ensure that the lifeblood of your business is handled properly. Aside from taking care of your accounting bookwork, there are various responsibilities that a bookkeeper needs to take care, but an inexperienced bookkeeper may not be able to provide you the results you are looking for.

•    You are assured that your business is taking the right direction. It is easy to determine your business is headed toward the right direction if you have your bookkeeping in place. If your books are incorrectly completed because you just appointed a family member or friend to carry out the bookkeeping task, you will realise that there are data details incorrectly entered. It can take some time before you correct the information needed for your business and this means you should opt for a bookkeeper that can do the job correctly. It would not come to this point if a good bookkeeper has been considered in the first place.

•    The bookkeeping process is systematic. If the systems and procedures are inadequate, record-keeping will not be effectively executed. When a bookkeeper knows what his doing. Your business will be in a better position to be well-aware of cash-flow and other important aspects of bookkeeping.

Bookkeeping is an essential part of every business because without it, you will end up mismanaging your finances. It is important that you know how to choose the right bookkeeper for your small business because the effects of bad bookkeeping is beyond repair if you choose cost over quality. You will realise the importance of good bookkeeping once you notice the improvement in your business’ financial aspect.

Andrew Donnelly

Written by : Andrew Donnelly

Andrew Donnelly is a degree qualified accountant and registered tax agent. He is the principal of Brisbane Bookkeepers, which provides bookkeeping services to small businesses in Brisbane and its immediate surrounds.

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­ Questions? Give Andrew a call 0450 605 592