Why all SME’s should Hire a Professional Bookkeeper
Trying to keep costs down is a constant struggle for SME owners and as a result, many of them turn to cutting outsourced bookkeeping costs as a means of reducing overheads for their business. However great this may seem from the outset, trying to save money by doing the bookkeeping is not a good idea for business owners, that’s unless the business owner is a qualified and experienced accountant of course. The reason being is that one could end up causing a lot of damage that could take hundreds, if not thousands of Euros to fix.
Bookkeepers have a very important role to play in any business, regardless of its size and industry. They need to accurately mоnіtor саѕh flow, ensure all taxation is paid аnd keep all financial rесоrdѕ uр to date for auditing purposes. As well as what we’ve just said, there are many other key reasons why SME owners should hire a professional bookkeeper to manage their business accounts.
Let’s take a look at some of them:
Knowledge of Taxation & Accounting Principles
A thorough knowledge of accounting and taxation principles is required to minimise the potential risk of inaccuracies when conducting payroll and bookkeeping duties. While you may think that you are doing great by saving money by taking bookkeeping duties into your own hands, in the long run your insufficient knowledge of taxation and accounting principles will cost you. Inaccuracies in processing wages and producing account statements can lead to penalties from the relevant tax authorities. When you hire a professional bookkeeper, you hire a knowledgeable accounts person, with qualifications in taxation and accounting.
Trying to master all of the bookkeeping tasks for your business by yourself or assigning that task to an inexperienced staff member could result in you missing important tax deadlines. Unfortunately, missing important tax return deadlines can land you in trouble with authorities, with Revenue applying penalties in the form of fines for accounts returned outside of agreed deadlines. If invoices are not paid within agreed deadlines, your suppliers may lose faith in you and negotiating credit in the future may prove difficult.
Need to Keep Accurate Records
When it comes to bookkeeping, filing accurate records is incredibly important. In fact, it is recommended that financial records be stored for up to 7 years for auditing purposes. A professional bookkeeper will be well versed in keeping concise, clear financial records, checking figures over and over to ensure complete accuracy. By hiring a professional bookkeeper, you can have peace of mind knowing that accuracy will be at the front of their mind as they conduct all of your bookkeeping duties.
Managing Accounting Software
Accounting software is not for the faint-hearted, and you’ll know this if you’ve ever dappled in such conditions. Bookkeepers will be experienced in using various forms of payroll and accounting software. In an instant, they will able to whizz around an accounting software interface and check for any unpaid invoices or pending creditor invoice dates and they’ll be able to set-up new employees on payroll in a flash with no issues.
Given that SME’s have so many important tasks and both short and long-term goals to focus on, hiring a professional bookkeeper to take care of their accounts makes total logical sense. And having read all of the above, wouldn’t you agree?