As a small business owner, you’re accustomed to doing things on your own.
In particular, many small business owners feel intense ownership over their businesses, and feel compelled to have a hand in all parts of its operation.
In many instances, that includes doing the finances as well.
It’s admirable that you’re taking such a hands-on approach to your business – when it comes to your accounting however, going it alone can often result in a host of different errors and issues.
These can cause considerable harm to your business – problems that could be avoided if you outsourced your accounting to a small business accountant in Melbourne.
It may be a hard pill to swallow, but trust us – in the end, your small business will be better for it!
First thing’s first: the difference between bookkeeping and accounting
Bookkeepers support accountants by recording all the day-to-day transactions and financial data.
On the other hand, accountants use this information to:
- Devise business strategies;
- Advise on business decisions;
- Determine your tax obligations; and
- Uncover which deductions you may be eligible to claim.
In short, accounting is “big-picture”, while bookkeeping is day-to-day.
Why does this distinction matter? Simple: while many business owners may be able to perform their own bookkeeping (especially with cloud bookkeeping platforms), DIY accounting is considerably harder.
Accounting requires a completely different skill set – one that goes beyond data entry and relatively straightforward calculations.
It includes: financial advice, in-depth knowledge of tax laws, auditing, training in AASB standards, and financial statements… These are simply some of the niche skills an accountant requires.
Not all business owners will have all of these – in fact, most won’t. Hence, each business should have a dedicated small business accountant who specialises in these areas.
Don’t DIY – 4 reasons to outsource to a small business accountant
The word “outsource” is a loaded word. It usually evokes images of overseas call centres or dodgy phone tech support.
With regards to accounting specifically however, it simply means engaging an external accountant to look after your small business accounting needs!
1) It’s cheaper than hiring your own accountant
Unless you run a large business, most businesses simply don’t need a dedicated accountant!
As we mentioned above, most of the day-to-day number crunching falls under bookkeeping.
Compared to accounting, it’s much easier to learn, and can feasibly be done on your own.
As a result, most business owners only meet their accountants once a month, or on a quarterly basis.
Needless to say, there isn’t much point in paying a salary and superannuation for a staff member who you might only really need during tax season!
2) Save time
Accounting isn’t a profession that you can get into by taking a one-day course – it takes years of training, as well as professional accreditation.
What small business owner has the time for all of that? Especially with the hours you work?
Just as it can help save money, outsourcing your accounting tasks can also save you time.
Instead of spending time researching, training and fixing the inevitable mistakes that arise as part of the learning process, you can focus on making sales, looking after your clients, and doing the sorts of things that only you can do.
3) Avoid mistakes
Really, this point speaks for itself!
Professional accountants undergo extensive training and ongoing certification to ensure that they know their stuff. DIY accountants, on the other hand, are much more prone to error.
Whether it’s a calculation error, a new change to tax laws you were unaware of, or simply a mistake made during the learning process, small business owners who do their accounting often make mistakes.
Unfortunately, these errors lead to inaccurate numbers, which in turn leads to bad decisions.
The solution? Get one of our small business accountants in Melbourne to look after your accounting for you!
4) Keep up to date with a small business accountant
As anyone who follows the news knows, the law is constantly changing and being modified. Income tax, superannuation, business tax… all of these things change each year.
Small business owners like you have enough to worry about already!
Our small business accountants in Melbourne make it their mission to keep up-to-date with the latest changes in the regulatory environment.
In addition to ensuring that your business remains compliant with changing laws, we will also advise changes to be made which will ensure that your business is in the best financial position possible.
Why choose our small business accountants in Melbourne?
Simple: here at Bruce Edmunds & Associates, you are our first priority.
Our small business accountants make the process as simple and streamlined as possible, minimising the amount of work that you need to do – after all, you’ve got more than enough work on your plate!