Do you need a bookkeeper?
As a business owner, there are often many tasks you manage that aren’t directly focused on growing your business.
There is a whole range of day-to-day chores that aren’t necessarily your area of expertise, but you do them because they are all part of running a company.
Managing the finances is one of these areas, and if you regularly have your head buried in your computer reconciling accounts, running payroll and paying invoices, it might make you ask – do you need a bookkeeper?
Here, we look at what a bookkeeper can do and help you decide whether it might be a useful service… or if it’s an easy job to keep in-house.
“Good bookkeeping gives you clarity, control and confidence in your business finances.”
The difference between a bookkeeper and an accountant
Bookkeepers and accountants are sometimes mixed up and this is where you might need some clarification. While they are both involved with your business finances… there are significant differences between their roles.
A bookkeeper manages transactional activity. They look after your payroll, issue invoices and complete payments as required.
A lot of their work involves data entry and making sure that there is accurate record keeping. Part of their role is to track expenses and reconcile them correctly.
They usually have an understanding of accounting principles but are not necessarily degree qualified.
An accountant, on the other hand, provides astute analysis of your financial data and often manages your relationship with the ATO.
They can help you complete your regular BAS statements and annual tax returns and provide recommendations on effective tax strategies. They also produce many of the important financial reports you need to make key business decisions. Their skills far exceed those of a bookkeeper, and having a good accountant is an essential part of business success.
Some signs you might need a bookkeeper
Understanding the difference between an accountant and a bookkeeper is the first step… but how do you work out whether you actually need bookkeeping services? To help you decide, think about these questions…
Are the accounts taking you too much time? Do you find yourself spending many hours a week following up on financial transactions, ordering stock or chasing debtors for payment?
Are you falling behind on your business transactions? Is your reconciliation list a mile long? Up to date records are vital to make sure you can identify issues and be prepared for your regular activity statements… so, is everything managed in a timely fashion?
Are you sure that your records are accurate? While you may have done your best at completing the tasks, can you be certain they are 100% correct?
Are your tax and other compliance matters complicated? Adhering to regulatory requirements is crucial… this includes superannuation obligations and any relevant business accreditation.
Your answers to these questions will tell you if it is time to consider a bookkeeper. But there’s still one more consideration to think about before you make your decision.
“Outsourcing bookkeeping can free up your time to focus on growth rather than admin.”
Can you keep doing it yourself?
Modern accounting processes and cloud accounting systems are designed to make life easier for business owners.
There are numerous online business accounting programs, such as Xero, that can really take the headache out of doing the bookkeeping yourself.
Sending invoices, reconciling payments, managing debtors, integrating payroll and generating detailed reports are all relatively easy once you have the right software tool.
So, before you outsource and spend money on a bookkeeper… it’s worth looking at moving to an accounting system that can help you complete your tasks quickly and easily.
We are here to help...
If you are still unsure about whether you need a bookkeeper… or if you’d like to find out more about moving to a cloud based accounting system, we can help.
The team at North Advisory has extensive experience transitioning clients to using real-time business accounting like Xero. The software is simple enough for anyone to manage, and there are numerous tutorials and support systems in place to help you through it.
If you’d like to find out more, please contact us today.
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Bookkeeping Is Foundational to Good Financial Management
Consistent bookkeeping ensures your numbers are reliable, up-to-date and ready for decision-making.
It Saves Time and Reduces Stress
Outsourcing bookkeeping lets you focus on business strategy and operations rather than data entry and reconciliations.
Accurate Books Improve Compliance
Well-kept records support GST reporting, BAS lodgements and year-end financials with fewer errors or surprises.
Driven by our values
Effortless and Seamless
On-Boarding Process
Intuitive and Knowledgeable
Direct Expert
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Useful and Articulate
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Tech
Integrated and Automated
Frequently Asked Questions
What does a bookkeeper actually do?
A bookkeeper manages day-to-day financial records, tracks income and expenses, reconciles bank accounts and ensures transactions are coded correctly for accurate reporting.
How is a bookkeeper different from an accountant?
Bookkeepers handle regular financial data entry and organisation. Accountants interpret that data, provide strategic advice and prepare financial statements and tax returns.
Do all businesses need a bookkeeper?
Not all, but most businesses benefit. If you’re struggling to keep records up-to-date, spend too much time on admin, or your financial data isn’t reliable, a bookkeeper can help.
Can cloud accounting software replace a bookkeeper?
Software automates tasks, but it doesn’t replace the judgment and consistency a bookkeeper provides — especially for categorisation, compliance and reporting accuracy.
When should I consider hiring a bookkeeper?
Consider a bookkeeper when your business grows, your transactions increase, you want timely management reports, or you struggle with bookkeeping tasks yourself.
Can a bookkeeper help me stay on top of BAS and reporting?
Yes. Having consistent bookkeeping support can help ensure transactions are organised properly, making reporting smoother and reducing stress around BAS time.
North Advisory’s Reviews 
On 
Flo Mitchell
4 weeks ago
Changed to this company in 2019 from former accountant and love their approach of organizing everything for me face to face with Xero set up plus being able to call as much as I need for set annual fee. They also picked up on something that was not done correctly by my former accountant and saved me $4k for this.
Timothy Cummins
A month ago
They the truly the best, Martin and Judy are so experienced, knowledgeable & professonal, also quite like speaking with Rose : ) all people are so lovely!
Michael Iera
2 months ago
Positive, Responsiveness, Quality, Professionalism, Value
Michael Iera
2 months ago
Excellent company in regards to service and professionalism. Very experienced in dealing with complex matters. Highly recommended.
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia