Accounting is the most important process in any business may it be of an organization or an individual. The process of accounting in which one records the financial transactions including payments, purchases, sales and receipts, are handled with the help of a bookkeeper. I have a small service providing business and like any other business bookkeeping is very important to keep things under check.
Since I provide services myself along with a team of hired professionals, taking care of the accounting side has been literally impossible since last few months. To overcome that, I had to search for a bookkeepers Melbourne since that is where I am based at.
The reason to write this article is my way of sharing my experience with other small business owners. I used to manage the accounting side of my own business and frankly I never thought of hiring a professional hand. In the beginning it was quite exciting and I used to happily manage it even though it used to get quite difficult in term of time management. Slowly I started missing entries of ledger and then the bills would be misplaced somewhere and that would result in mismanaged accounts that would not telly the actual accounts.
These small mistakes went on for a few months until a blunder from my side resulted in a substantial loss. That forced me to hire an independent bookkeeper altogether.
Bookkeeper in Melbourne
I hired a bookkeeper from a professional such as www.bookkeeperco.com.au near our workshop. Initially I was worried if things will go well and according to my liking or not, but eventually I realised that the decision was one of the best decisions I made for the betterment of my business.
One thing that might be a surprise for you is that bookkeeper and accountant are two different processes. Bookkeeping is basically recording of transactions on day to day basis. A bookkeeper maintains record of daily purchases, payments, sales and all the receipts received or issued in a daybook.
An accountant on the other hand is responsible to form a report based on this daybook and different types of ledgers like customer, general and supplier ledger. So accountant’s reports of income statement and the balance sheet are based on all the recordings done by a bookkeeper on daily basis. Check here !
So, I believe if you are really looking for some solid bookkeeping of a business, you should hire a permanent bookkeeper rather than an accountant. Unless the accounting company with whom you are doing the contract will provide daily bookkeeping in the package.
With advances in technology on nearly daily basis, this not a surprise that now even bookkeeping has become quite advanced. The companies that are providing the bookkeeping services install software for the purpose of electronic bookkeeping. All one has to do is do entries on daily basis which are then handled by the service providing companies themselves.
This way a service providing company has less overhead cost of a physically visiting www.bookkeeperco.com.au for bookkeeping which result in cost effective service providing.