… and then there’s Professional Bookkeepers who are Registered BAS Agents who will – Save You Time, Save You $$ and Make You $$
There can be a huge difference in skill level of people that call themselves bookkeepers. Just as an apprentice “chippie” and his boss with 30 years construction experience may both call themselves “builders,” people representing themselves as bookkeepers can range from data entry clerks through to qualified management accountants.
A Professional Bookkeeper is identified by the fact that they are:
- working to a Code of Practice Standard, a Code of Conduct and a Code of Ethics
- a member of an accredited association recognised by the ATO
- registered with the Tax Practitioners Board as a BAS Agent
- able to produce a current Practicing Certificate which illustrates their qualification to offer their services publicly
- constantly furthering their studies to expand their knowledge and service
- prepared to work with the Client’s accountant on a professional level to ensure their client’s needs are best served
- helping the client achieve their business goals
- accredited in the use of accounting software.
How will they save me Time?
Time is a non-renewable resource. Every second you waste is a second you will never have back. Effective time management is one of the biggest keys to success for any business. Try this little exercise out to see if you are using your time in the best way possible:
Make a list of the top five most important tasks that need to be done in your business on a daily basis. These should be the things that literally put more money in your pocket.
Now, make a separate list of the tasks you spend the most amount of time on each day.
Don’t worry, I’ll wait until you actually put these two lists down on paper…
Now, if those two lists are not identical then there is a problem with your time management.
The solution is to outsource the tasks that are on the second list but not the first. If you are like most business owners then bookkeeping is certainly on the second list (or even worse it is not on it at all). Finding a service to handle this task will be a very important step in freeing up time for the tasks that actually grow your business. Struggling to stay on top of your paperwork along with the complexities of accounting and GST is not an ideal task.
OK, how will they Save me $$ and Make me $$
Do you think is sounds a little strange that hiring a Professional Bookkeeper will save you money? Well, it really comes down to simple mathematics. There are likely two scenarios right now for how you are handling your financials. Either you are doing it yourself or you are paying a member of your staff to do it for you. Both of these cut deep into your bottom line, and I will tell you why.
If you know your business well then you will know exactly how much an hour of your time is worth to the company. As we talked about in the previous section, there are some tasks that are just more important than others. For example let’s say that when working on the most important jobs your time earns your business $100 per hour. Now compare that to the amount of money it would cost to outsource to bookkeeping services. Even if it costs as much as $55 per hour you are still making an extra $45 per hour by having someone else do it. When you do a $55 per hour job yourself instead of a $100 per hour one, you are wasting a lot of potential money.
The other scenario is that you are paying an employee to do the job, either part or full time. When you factor in superannuation, sick pay, holiday pay and pay raises the cost can add up quickly. In most cases you can outsource this job to a dedicated Professional Bookkeeper and save a lot of money now and in the future.
Look at it this way…
- What is the average cost of your DIY Bookkeeping per month? Answer: $ _________
- How much of your cost for DIY Bookkeeping is claimable as a business deduction? Answer: Nil
- The total amount that is claimable as a business deduction for using a Professional Bookkeeper?
Answer: 100%
Added Bonus – Help Prevent Costly Mistakes
Incorrect GST coding usually resulting in under claiming GST Credits
You probably know that mistakes in your bookkeeping can seriously damage your business. This is much more likely to happen if the job is being handled by someone who is not specifically trained for it. Most business owners are not bookkeepers. If bookkeeping was something you loved and excelled greatly in than it is not likely you would have started your current business in the first place – you’d be a bookkeeper. The combination of inexperience and distaste for the job is a recipe for costly mistakes.
Here lies the added Benefit of using a Registered BAS Agent.
- A Taxpayer is provided a level of ‘consumer protection’ in meeting their GST legislative compliance obligation requirements
- BAS Agents get extensions for BAS lodgments and Payment concession of up to 4 weeks after the due date
- BAS Agents get extension for Payment Summaries until 30th September instead of 14th August
- Clients are assured that a registered BAS Agent can ‘do the BAS legally’ for them, are accredited to help and can therefore be relied upon to assist.
- A Taxpayer who engages the services of a Registered BAS Agent has access to ‘Safe Harbour’ which removes penalties (Failure to lodge – FTL) from certain administrative activities such as late lodgement, misstatement
When does the Safe Harbour from FTL not apply? – when it is lodged by the Taxpayer
Save yourself some trouble and outsource this job to someone who really knows what they are doing.
“Oh but I just send it to my accountant” I hear you say…
And we hear it all the time but unfortunately what many business owners are confused about and and don’t realise is that while very similar, a Professional Bookkeeper focuses on maintaining timely and accurate records of financial data – ranging from income, payments, Payroll, BAS, Reconciliation, sales, and purchases. An accountant, on the other hand, takes the information recorded by the bookkeeper in order to create financial statements. They are valuable for preparation of tax returns and conducting an overview of the business
DID YOU KNOW THAT YOUR BEST $$ VALUE IS ACHIEVED IF YOU SPEND 80% OF YOUR ACCOUNT MANAGEMENT TIME WITH YOUR PROFESSIONAL BOOKKEEPER AND 20% WITH YOUR ACCOUNTANT…
Shared with you by – Maureen Millar
Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)
Maureen Millar is the owner of Jim’s Bookkeeping Northern Gold Coast and she supports small business’ in Helensvale and across the Northside of the Gold Coast. To find out more about Maureen, visit her profile page at http://www.jimsbookkeepingbrisbane.com/maureen-millar.html or request her free report to discover “How to Stabilise & Grow Your Business in 7 Easy Steps“
Many of my most important clients are small business owners. I make a study out of what makes them successful and what pitfalls they need to avoid.
Unfortunately, with the recent disasters that have hit our state there will be a number of small business owners with lost or destroyed critical data and our heart goes out to them.
Terry has recently been awarded the prestigious ‘National Franchisor of the Year Award’ by Jim’s Bookkeeping Australia which recognises his outstanding dedication to the welfare of his franchisees and the personal involvement he shows in all of their businesses.
