Tag: how to find a good bookkeeper

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Do You Need a Bookkeeper or an Accountant? Or Someone Else?

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There are many finance professionals — who does your business need?

find a good local bookkeeper
Does your business need a bookkeeper, accountant or perhaps just a BAS agent – or a little bit of everyone?

WE’VE MENTIONED PREVIOUSLY THAT finding a bookkeeper, when you may not know much about bookkeeping, can be a difficult task.

In fact, a lot of new business owners assume their accountant will take care of everything for them, which may be costly if their accountant has to perform a year’s worth of bookkeeping in order to file the business’s tax return. But bookkeepers and accountants can work harmoniously in your business.

As a general rule, every business needs at least two finance professionals working on their business accounts, but which two professionals you’ll need to hire depends on your business needs. If you’re not sure who you need to hire for your business, here’s a cheat sheet to help you out.

Bookkeepers (not registered with the TPB)

An independent bookkeeper not employed by an accountant and not registered with the Tax Practitioner’s Board (TPB) may only perform basic bookkeeping services, such as the

  • entering of receipts,
  • coding financial transactions,
  • generating invoices and purchase orders
  • accounts receivable and accounts payable

If you hire this type of bookkeeper, you’ll still need an accountant.

BAS agents

BAS agents must, by law, register with the Tax Practitioner’s Board (TPB), which certifies that they are qualified and have completed the necessary continuing education requirements to perform the tasks of a BAS agent, which involves carrying out most of the bookkeeping tasks mentioned above, in addition to preparing and lodging business activity statements on a business’s behalf.

If your business is registered for GST, you will need to file regular activity statements. If you hire a BAS agent, you’ll also need an accountant. In some instances, you may find a BAS agent who’s also a registered tax agent and vice versa, who may be able to take care of all your taxation needs.

Tax agents

Although tax agents, like BAS agents, must also register with the Tax Practitioner’s Board (TPB), a tax agent is focused on income tax — how much income you have to declare, how much you can claim back, etc.

This is distinct from a BAS agent who is concerned with the day-to-day financial tasks of your business (bookkeeping and BAS lodgements). That said, some tax agents will also perform some the basic bookkeeping tasks on a regular basis, though they primarily specialise in lodging tax returns.

If you’re not registered for GST, and your tax agent will also perform regular bookkeeping tasks (or you can do it yourself), you may not need to hire an accountant. In some instances, you may find a tax agent who’s also a registered BAS agent and vice versa, who may be able to take care of all your taxation needs.

Accountants

An accountant is mostly concerned with planning and strategy. Unlike bookkeepers and BAS or tax agents, an accountant will assess and advise you on what actions you should take to maximise your income. Great accountants will get involved with planning the direction of your business and ensure it’s been structured properly and that you’re meeting any additional tax obligations.

They’ll also help you to make strategic purchases for equipment and machinery, and work with your BAS agent or bookkeeper to ensure these decisions are reflected in your daily financial records. An accountant is also able to prepare and lodge tax returns on your behalf.

How much should I pay a bookkeeper?

Check out the National Bookkeeping Directory, which features the details of bookkeepers, capable of doing data entry and clerical tasks, through to high-level accounting work as undertaken by BAS agents, accountants and CFOs.

You can also see the National Bookkeeping rates page to find out what level bookkeeper your business needs.

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Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 

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Finding Help with Your Bookkeeping

Why you should employ a bookkeeper to help manage the books

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If you’re a small business owner, it shouldn’t be taking you an inordinate amount of time to keep your bookkeeping orderly and up to date. If it is, perhaps now is the time to get help.

PERHAPS YOU ARE a small business owner who is trying hard to keep up to speed with your regulatory bookkeeping requirements. But no sooner does one quarter end and another one seems to roll by with the commensurate paperwork due all over again. This is taking away from your regular work and you’re falling behind — and half the time you’re not even sure that it’s being done correctly. It sounds like you should be seriously considering finding a bookkeeper for your business.

Even if you have training in how to use Xero, MYOB or Quickbooks, or some other cloud accounting program, finding a great bookkeeper can make all the difference to your business. However, although there might seem to be plenty of “bookkeepers” around, finding the right one bookkeeper for your business is not an altogether easy thing to do. And if you’re financially challenged, you also need to find a bookkeeper who won’t break the bank.

Bookkeeper, accountant or tax professional?

These days, the term bookkeeper is almost an umbrella term for all the different types of accounting and tax professionals available to you, from basic data entry bookkeepers right through to specialised BAS and tax agents.

There are even some bookkeepers who are so knowledgeable in one particular accounting program that the software company has endorsed them as certified consultants or advisors, and some earn commission from accounting software companies, while there are others who aren’t beholden to any particular software company. We outline four steps you can take to narrow down the search.

Step One: What Kind of Bookkeeper Do You Need?

Think about your business and how it operates. Do you have lots of business purchases and transactions each week? Do you employ staff? Do you work in a specialised industry? Are you registered for GST? Do you require a bookkeeper to work onsite at your premises or can they work remotely?

Write down the needs of your business to help you determine the kind of financial help, and therefore, what kind of bookkeeper you need for your business.

Step Two: Research Local Bookkeepers in Your Area

Visit the websites of some local bookkeepers in your area, or search the National Bookkeeping Directory to find bookkeepers matching your requirements located near you. If you don’t require a bookkeeper to visit your premises, broaden your scope and research bookkeepers who can work remotely. Make a shortlist of potential bookkeepers.

Step Three: Check the TPB Register

BAS and tax agents are required, by law, to register with the Tax Practitioner’s Board (TPB), so if your business requires either a tax or BAS agent (or both), the TPB Register should be your first port of call to ensure the person who have in mind is currently registered to provide BAS or tax services.

Step Four: Interview Your Preferred Bookkeepers

During step two, you made a shortlist of potential bookkeepers, and, assuming your TPB search didn’t turn up anything to be wary of, you should now set about contacting each one to get to know more about the services they provide.

It’s a good idea to ask them how long they’ve been working as a bookkeeper for, the sorts of businesses they’ve worked with in the past, and any expectations they may have of you. You should also ask for a written quote for their services. This quote should form part of your professional services agreement.

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Many bookkeepers will provide an initial consultation, and if not, ask them to. We outline a number of things you can expect and ask them at this first consultation.

If you need help making your small business dream become a reality — with business planning and templates, identifying target markets, with any form of marketing and advertising, including social media, even just setting up a great looking website — then check out our EzyStartUp Course or contact us for more information. 

 

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What Do Bookkeepers and Builders Have in Common?

How to see if your bookkeeper is competitive

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Shopping around for bookkeeping quotes in order to ascertain exactly what tasks your bookkeeper will do is perfectly reasonable – and a great way to develop your PSA.

FINDING THE RIGHT BOOKKEEPER for your business isn’t always easy, especially when there are different types of bookkeepers who each provide different services. That’s in addition to all the different certified consultants and advisors around. We’ve found that one of the best ways to ensure you’re hiring the right bookkeeper is to simply ask them for a quote.

Getting a bookkeeping quote

When it comes to getting a quote you can compare a bookkeeper to a builder. Just as you would get a quote from at least a couple of builders before hiring one of them to work for you, it’s a good idea to get a couple of different quotes from different bookkeepers. This helps you compare apples with apples.

But more than this: a bookkeeping quote should detail precisely what tasks the bookkeeper will carry out, the frequency at which they’ll be done, and any other hidden costs you may be up for, such as the cost to migrate your data from one accounting application to another.

Your professional services agreement

Getting a quote will also help form your professional services agreement. Simply obtain the required number of quotes and decide which bookkeeper you’ll hire for your business; then make sure that quote is turned into a professional services agreement (PSA).

A PSA is the written contract between you and your bookkeeper, outlining the tasks they’ll carry out and when, any other fees and charges, when you’ll pay them and how, plus any additional obligations on their part and yours. A professional services agreement is a safeguard for both you and the bookkeeper. It’s also another way to help ensure the bookkeeper will be the right fit for your business.

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Need to brush up on MYOB or Xero?

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Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses.