Do you think that a bookkeeper is typically somebody who wears horn-rimmed spectacles and pores over a ledger all day? Maybe you think that their primary job is to simply balance debtors and creditors and make sure that everything is in its place from a financial perspective. Yet, this is a very narrow-minded interpretation of the typical, modern day bookkeeper, and you would do well to bring one on board for your business if you haven't already done so. What type of help could this professional provide you with to make sure that your business not only survives but thrives?
More Than Just "Books"
Certainly, a bookkeeper will ensure that all your paperwork is kept up-to-date and that invoices are issued and receipts are categorised as and when expenditure is incurred. Perhaps more importantly, however, they will ensure that your cash flow is carefully managed, as this is probably the biggest reason why organisations fail in the early years.
Big Picture Help
As you may know, cash flow is an analysis of money received versus money spent, in terms of what is available at the bank. If you're going to have regular cash flow, you must ensure that you always get paid on time, and to do this you must set down strict guidelines for all your customers.
A good bookkeeper will help you to draft some terms and conditions to augment your trading terms, if necessary, and may be able to advise you with regard to setting credit limits. This could be crucial when it comes to cash flow, as your suppliers will want to be paid according to their terms in every case. If you are somewhat haphazard at bringing in money, then you may find that your bank balance cannot sustain the situation, so expert advice is often crucial.
Your bookkeeper will make sure that they send out statements promptly and follow up whenever a debtor falls behind with a payment. They will also help you to administer your credit facilities from a longer-term perspective and could remove a particular customer from credit arrangements if they have a poor payment history with you.
Making Sense
As you can see, there are many different ways a bookkeeper can help you to proactively manage and grow your business. You have enough on your plate to service all your customers as it is and should look for a qualified individual as soon as possible.
Share4 March 2019
Good day. I’m Linda and I run two family businesses — building contractor and aged care staff agency. It is quite a feat to juggle schedules and keep track of finances. I have become quite an expert with business management software. I have also learnt the vital importance of having good accountants to give advice and keep bookwork up-to-date. Prior to starting our family businesses, I honestly thought accountants existed to organise tax returns. I now understand that their jobs are much more complex and they can help your business prosper. I started this blog to highlight the numerous ways I’ve found that accountants can contribute to financial success. Please browse through the posts and I hope you find something useful within.