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What’s Your Bookkeeper Preference?
Recently, I wrote that a lot of bookkeepers are losing out to accountants because business owners prefer the cheapest and easiest way to stay compliant. Rather than employing a bookkeeper AND an accountant to lodge their tax returns and activity statements, many business owners choose to hire an accountant only so they can deal with just one person but are they really getting value for money? When it comes to finding a good bookkeeper at this skill level business owners have the choice of hiring:
- Registered BAS Agents,
- Their accountant’s internal bookkeeper,
- An external, independent finance manager
Many good bookkeepers these days have trained as qualified BAS agents, which allows them to complete and lodge activity statements for their clients and other BAS services. The skill sets of a BAS agent and an accountant performing BAS tasks are the same, so they usually charge the same, but does your accountant really do your BAS or basic bookkeeping work?
Accountants perform higher level duties, such as financial planning, and their fees for this service are inline with what some experienced finance managers charge but when it comes to basic bookkeeping tasks they often hire a junior bookkeeper and charge them out at a lower rate but this rate is often much higher than if you hired this type of bookkeeper directory – so what are you paying for?
Pay for what you need, not what you don’t
Think about your business needs. Most micro and sole trader businesses will rarely need the expertise of an accountant. But hiring one means that you’ll need to stay on top of your bookkeeping (reconciling your account, etc) because accountants won’t perform these tasks — they may outsource it, which can be costly because your accountant will be managing the bookkeeper and adding a margin to their rate as a management cost.
These businesses should instead hire a BAS agent, who can also perform bookkeeping work as well as lodge activity statements and in this situation they could just use a tax agent like ITP or H&R Block. Depending on the amount of work to be completed you could directly hire a junior or Level 2 bookkeeper and have that person perform a lot more of the bookkeeping function and office administration work and with cloud-based software like Xero & QuickBooks and Office productivity tools like Google G Suite the work can be done remotely.
If you want someone to manage all of your finances — keep track of inventory, credit management, etc — and also provide financial reporting and planning services, a finance manager is the way to go as this person can also provide guidance to your office admin and junior bookkeeping staff.
Who does an EzyLearn course?
Lots of EzyLearn students complete an MYOB, Excel or Xero course because these software programs are demanded by employers, but we also receive enrolments from lots of bookkeepers and accountants who want to learn the cloud-based accounting software programs as well as up-skill in MS Office and Digital & Social Media Marketing. If you are a bookkeeper or accountant and need CPD courses check out our Bookkeeping Academy.
Start a bookkeeping business and work from home
Every business needs a good person with numbers and many small businesses and startups are focused on what they do best – and it’s rarely accounting. Learn about the bookkeeping business startup options..
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