Most business owners are driven by a DIY mentality. They believe that if it belongs of and involves their business, then they are capable of handling it. Well whereas this holds for some tasks, it is not always the case for more complicated tasks with bookkeeping a good example of such. Bookkeeping is a sensitive field and requires experts or otherwise you as the business owner would incur higher costs for not having hired or outsourced for one as compared to the costs of outsourcing.
Most small business owners have admitted they are struggling with deciding on whether to hire or outsource an expert bookkeeper in Melbourne. Well, both approaches have pros and cons depending on the type of business and there would be no direct advice for this. However, understanding your business and its needs from bookkeepers can be that crucial first step that will help in deciding whether to hire or outsource. We shall review on both options here and what suits what business and at what time. By the time you will be through reading this, you would have a conclusive idea on what to aim.
Outsourcing for bookkeeping services
Although there is no clear distinction between an accountant and a bookkeeper, there are slight differences between the two. The two can be compared as a carpenter and an architect if the situation is assumed to be building a house.
The accountant – He/she would be the architect who is generally concerned with the bigger picture. The account is interested with the general financial situation of your business and handles the key documents relating to this.
The bookkeeper – This one qualifies as the carpenter as they are involved with day-day handling of paperwork in the financial department. They keep the receipts, file and prepare the paperwork for the business’ payroll and handle all bills.
If you run more than one business or are caught up with other important areas of your business, hiring a bookkeeper would be a perfect solution for you. You do not want to deal with petty receipts and try to reconcile small accounts, you may want to use that time for other important activities and this is exactly what expert bookkeepers Melbourne help you do. If the other service that you would need from your bookkeeper are tax related, then you outsourcing would be a better options since this only happens periodically.
When to hire
If you run a business with say more than 30 employees, you will need a financial expert to oversee matters pertaining payroll processing and tax filing. Another indicator that you need to hire and not outsource for bookkeeping services is if your company makes huge revenues and at this point, building trust and a close relationship with your financial expert becomes crucial. You know you have to hire an accountant when the calls between you and them become more and you find yourself wishing at some point that they were in the office to help you with something.
Based on these few indicators, it can be deduced that the best time for any business to hire a financial expert is when it has grown. Small and new businesses can outsource as they grow and gain experience in the market.
To learn about other comparisons, visit: expert bookkeeper in Melbourne.