Bookkeeping for Small Business

Legal Requirements

It’s surprising the number of small business owners we speak to who feel worried or even guilty about the state of their bookkeeping. Bookkeeping for small business is neither a quick nor a simple task, and it’s okay if it’s not your strong suit. In fact, for small business owners, bookkeeping is one of the first tasks that should be outsourced.

In Australia, it is a legal requirement to keep records of all business transactions for at least five years. Many small business owners tend to keep a lot of information in their head, including the invoices they need to pay and when they’re due, and the accounts due to be paid by their creditors. But unless this information also exists in written form – whether on paper, in offline accounting software, or in cloud-based accounting software like Xero – you may inadvertently be breaking the law.

The Importance of Good Bookkeeping for Small Business

Not only is good bookkeeping for small business important for legal reasons, it is essential to maintain a healthy cashflow. Bookkeeping gives you an up-to-the-minute look at the financial health of your business, and it is only with appropriate bookkeeping that you can have a good idea of your cashflow position. Regardless of how profitable a business may be, it can still easily go under – or fall into unnecessary debt – if it does not have the cashflow necessary to meet its financial obligations at any point in time.

For businesses that are otherwise profitable, cashflow problems are avoidable and stem solely from a lack of knowledge and insight into the business’s current cashflow position. Good bookkeeping for small business is an easy solution to this avoidable problem.

Outsourcing Bookkeeping for Small Business

When you decided to go into business for yourself, we’re willing to bet it wasn’t so you could practice your awesome bookkeeping skills. In fact, if you’re like most business owners, bookkeeping tasks are pretty low on the list of priorities, about equal to cleaning the toilets and emptying the bins.

This fact alone makes many business owners feel guilty. But why should it? You’re not a qualified bookkeeper, and you’ve got enough on your plate with the day-to-day tasks of actually running your business without adding bookkeeping to the mix.

The good news is that bookkeeping is surprisingly easy to outsource. Recent advancements in technology have made online, cloud-based bookkeeping services like Xero and MYOB more accessible than ever, giving you the freedom to outsource your bookkeeping to overseas suppliers at a fraction of the rates you would pay in Australia.

The Benefits of Outsourcing

Time and money. While at first glance outsourcing bookkeeping for small business may seem like get another expense, you’ll soon realise that it will save you both time and money. For both legal and practical reasons, bookkeeping is no longer an option. You can either spend your valuable time doing it, or outsource the task to a bookkeeper who can complete it in a fraction of the time.
Maximise your resources. The time you spend struggling with your small businesses bookkeeping tasks is time that would better be spent elsewhere – either on business tasks that will make you money, or time spent outside the business altogether.
Experts in their field. When you outsource your bookkeeping for small business, you’re handing over the task to an expert. Overseas bookkeepers make it their job to stay up-to-date on new developments and the latest bookkeeping best practices.
Accuracy and accountability. Small business owners know that there’s always the possibility of an audit at any time. Outsourcing your small business’s bookkeeping to an expert in the field ensures that the tasks will be completed to strict levels of accuracy, helping you breathe a sigh of relief knowing that your bookkeeping is both accurate and up-to-date.

To find out how Free My Cloud can arrange all aspects of outsourcing your bookkeeping tasks to qualified overseas bookkeeping professionals, contact us today.

Free My Cloud Pty Ltd services all capital cities including Sydney, Melbourne, Brisbane, Perth as well as all regional Australian areas. All you need is an internet connection.