Starting your own business?
Have you recently started your own business and don’t exactly know where to start? You have gone through all of the major steps of starting your new business, including registering your business name and setting up your ABN. You are slowly going through the process of getting some work – picking up clients, new or existing. Perhaps you have started a business in a field you are brand new to really starting from scratch or maybe you have taken over a business and you have no idea what this involves. There are so many different starting positions when commencing your journey, but no matter where your starting line may be, there is one common denominator – a bookkeeper.
When do I need a bookkeeper?
A lot of the time when people start a new business, they have spoken to friends, family, accountants, banks and maybe a few other people they know who started their own business a little while ago. Or maybe one day you felt inspired and just up and quit your job. No matter how you found yourself to be where you currently are, finding a good bookkeeper from the start is the key to success.
You need to have the right people in your corner when you are starting a business, because at the end of the day we are all human and you are going to make some mistakes along the way. It is just how the cookie crumbles but if there are some mistakes that you can avoid, we would always suggest doing that.
Have you ever heard the saying “learn from someone else’s mistakes?” That is some of the best advice that you can listen to when starting your own business. By this time in your career, we are sure you have worked for plenty of people before. Like most people you will have had some great bosses and had some pretty shitty bosses. From each experience, whether you know it or not, you will have taken a little bit of knowledge with you.
However you have found yourself on this path, you have come to this decision right now to be your own boss. You want a piece of the pie that everyone else seems to be getting, or perhaps you are sick of working for someone else? At the end of the day it doesn’t matter what your motivations are, you’re in this position now and you need people within your business who will care for your business with the same care as you do.
What does a Bookkeeper do?
A bookkeeper can be your best friend! They are responsible for providing accurate, up to date financial information about your business. Most often, bookkeepers report to business owners to help them make better decisions within the business and sometimes are involved in strategy development.
Two fundamental duties that bookkeepers provide are data entry and bank reconciliation, without these duties being looked after all other bookkeeping tasks fall over. Main duties you would be looking to fulfill within your new business would be to record financial transactions and make sure your books are balanced.
Bank reconciliation is another key role, cross referencing the books against bank transactions and statements and other sources of documents to make sure that everything checks out. Lastly, they will also need to report to you each month to advise you of your business’s financial position.
Of course there are other roles that a bookkeeper can implement, such as sending out invoices and acting as a debt collector, making sure all suppliers and tenders are paid for in a timely manner, payroll and so on. Bookkeepers are the pulse to a business and can make your life so much easier, if you have the right one. As your business continues to grow you may eventually need a bookkeeper who can go above and beyond, especially one that can prepare your tax returns, prepare end of year reports, business strategies and so on.