Who is a bookkeeper?
A bookkeeper is an accounting professional who records the accounts or transactions of a business. The major responsibility of a bookkeeper is to perform data entry and receipt wrangling. They also help in tracking cash flow of the firm along with assisting in audit and management reporting. They prepare a balance sheet which tells us about its financial status at the end of the definite interval. A bookkeeper assists and guides the firms in choosing the best possible strategy to bring in large scale development and growth of the organisation.
Bookkeepers also help in tracking cash flow of the firm along with assisting in audit and management reporting. Better relations with banks and other firms, along with accurate tax predictions, are some of the hidden benefits of bookkeeping. Outsourcing bookkeeping and accounting services is one of the next big moves which will be opted by firms and multinational corporations.
Benefits of bookkeeping:
It is always easier to plan and predict the future of the firm when one has a detailed overview and analysis of the firm. Better relations with banks and other firms, along with accurate tax predictions, are some of the hidden benefits of bookkeeping. With accurate financial data and reports, companies can make well-informed decisions along with focusing on business profitability and minimizing expenses.
Virtual bookkeeper:
Considering the present situation where offline activities and operations are not feasible, it is required that firms outsource their work through bookkeepers and tax agents available online. Outsourcing accounting along with hiring experienced bookkeepers is the best way to solve this issue. To avoid penalties and other pay, firms should take help from specialists in the field to avail long-term benefits.
A virtual bookkeeper would study all the transactions, investments and trade made by the firm in the year and would maintain records including vital payments, general and miscellaneous expenses made by the firms. The firms can study the record, compare it with transactions made in the previous year. Accordingly they can plan strategies and schemes for further expansion and growth of the industry.
Benefits of outsourcing accounting and bookkeeping:
Outsourcing accounting and bookkeeping have many hidden advantages attached to it. These service providers maintain proper records and advise the firms as to how to reduce their costs and multiply their profits.
When companies outsource their work, they reduce their workload and put in more efforts to pace up the growth levels of the company. Many successful businesses choose to outsource to improve their core business focus, to avoid the risk and costs of hiring more employees, and to gain access to outside expertise that they could not afford otherwise.
Firms must ensure smooth communication with their agents and hire those with experience in maintaining professional conduct. Transparent relations and efficient conduct with the bookkeepers would help in making the professional bond stronger and more secure. There are many verified and talented groups of bookkeepers and agents who provide these services online at minimal costs. Working online saves money, technology and infrastructural costs.
Case of Australian accounting firms:
Because of distant job location, lack of professional and basic skills and fewer years of experience, the hiring process becomes much more complicated and uneasy. Because of the Covid situation, Australian-based companies are finding it difficult to hire Australian-based workers. Hence most of the firms are offshoring accounting services and are hiring tax agents and bookkeepers to maintain their records and lodge their returns.
Even the Australian Taxation Office (ATO) has recommended firms to hire registered tax agents for lodging the returns. Offshoring accounting services reduces burden, saves efforts and money of firms.
Offshoring accounting services requires a minimal investment, but this minimal investment is much better than delay in filing returns or paying large amounts of tax to the government.
Conclusion:
There are innumerable advantages of hiring a specialist and allowing him to handle all the accounting services. Workload of the firm would reduce and the firms would be able to plan bigger expansions and integrations. By filing returns properly and accurately, firms are in a better position in front of the higher authorities. Firms and individuals add their part to the growth and development of the country. Hence, many firms in Australia are already considering outsourcing bookkeeping and accounting services.
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