Why Hiring an Accountant and Bookkeeper Will Save You Money

Whether you are just starting out and you are your only employee, or you are well-established and growing beyond your wildest dreams, hiring an accountant and bookkeeper will save you money, time and stress.  It’s not a question of whether you can do your accounts. But rather a question of whether your business will be better served by letting experienced industry professionals take care of your financial obligations.

It’s worth noting that poor financial planning is one of the leading causes of a business’s decline. Placing this responsibility in the hands of an accountant gives you the freedom to pursue growing your business to its full potential. But, a bit more on that later. Let’s first look at just what financial professionals do.

What is the difference between a bookkeeper and an accountant?

Let’s look at the difference between a bookkeeper and an accountant as this is a commonly confused distinction.

A bookkeeper looks after the day-to-day financial aspects of your business. They will:

  • Process invoices, payments, and financial transactions
  • Process payroll and maintain the payroll system
  • Track expenses
  • Prepare initial financial statements for the accountant
  • Reconcile accounts
  • Manage accounts receivable and accounts payable
  • Calculate GST
  • Prepare and lodge BAS (if they are a registered BAS agent)
  • Prepare payroll tax
  • Prepare superannuation records
  • Maintain in-house accounting systems

An accountant is a financial professional with an analytical and advisory role. They make projections which can help you make financial decisions for your business by:

  • Establishing an appropriate business structure at the outset
  • Preparation of finance applications
  • Assistance with vehicle and equipment financing
  • Superannuation fund advice
  • Tax planning and lodgement to ensure you are claiming all possible expenses (if they are a Tax Agent)
  • Financial modelling to project best and worst-case profit scenarios to help you grow your business
  • Ensure you are appropriate registered for tax and insurances to protect your business
  • Prepare and lodge BAS (if they are a registered BAS agent)
  • Survival strategies should a recession occur

Why do you need both?

A business which has its finances well-controlled is one that has a bookkeeper and accountant working together. Their tasks can overlap, but you will save money by relegating ongoing financial upkeep of your financial records to a bookkeeper, while the accountant can provide higher-level finance analysis, advice, and planning. They tend to look more to the future of your business and accordingly, have higher fees. The bookkeeper will maintain and provide financial information to the accountant to assist them in analysing your business’s financial position and then forming strategies to help you grow it.

Could you use more money, more time and less stress?

Of course! So, here’s how hiring an accountant and bookkeeper will save you money, time and stress:

Save money: You will save money because they tighten up on claiming expenses with tax-minimisation practices and help you make the right financial decisions for growing your business. They can model costs in times of significant growth to ensure you stay afloat before the money from increased sales comes in. A bookkeeper will keep your debtors in check and ensure money is coming in when it is due.

Save time: The most important point to take away here is that hiring financial professionals means you can spend time on being the best business you can be. It’s a competitive market which means that investing time to maintaining an excellent reputation is vital. Don’t spend your time chasing debtors or trying to understand the intricacies of tax-minimisation. Spend your time researching new approaches to finding clients, launching new products, training your staff and ensuring each client has the best experience possible. Not to mention, having some work/life balance is important too!

Stress less: Let’s not forget that you have a high-pressure business because client expectations are extremely high in this industry. Why should you have the weight of the financial aspects of your business on your shoulders alone when you can collaborate with professionals? Have peace of mind by backing your business decisions with knowledge and the benefits of experience. You will have less stress because you will know at any given point, the financial and some of the legal aspects of your business are being handled by trusted professionals.

Remember: hiring an accountant and bookkeeper will save you money, make your life easier and help your business flourish!