Keeping on top of the financial day-to-day workings of a business is challenging. 

A bookkeeper can save business owners time and effort, not to mention their sanity, and make it a breeze for the business accountant too!

To get in your bookkeepers’ good books:

DO

1. Be organised and keep copies of receipts and invoices, either digitally or physically.  These source documents are required by law for tax and audit purposes.
2. Keep records of cash expenses related to running the business.  It is possible for a business to be profitable but run out of cash.   Profit indicates the amount of money left over after all expenses have been paid, whereas cash flow is the net flow of cash in and out of the business.  Cash flow is crucial for ongoing viability!
3. Respond to their questions quickly, please don’t ignore them.  Problems don’t go away; they usually get worse, and that delay will cost extra money.
4. Think of the relationship with the bookkeeper as an ongoing conversation between two parties.
5. Contact them immediately if there’s a problem so it can be solved promptly. 
6. Take the time to review their reports and ask questions if you don’t understand something.
7. Give them online access to bank accounts and credit cards to save time.
8. Tell them when you open new accounts or credit cards.
9. Provide loan documents and loan statements to help them keep more accurate records.  Errors can result in additional bank fees and charges.
10. Keep them in the loop and disclose any changes in relation to finance or business.

DON’TS

1. Mix personal and business finances. Personal expenses should not be recorded as business expenses; nor should a business credit card be used for personal spending. 
2. Draw money out from the business without considering the impact on the health of the business.  Withdrawing funds affects cash flow, profitability, and future sustainability.
3. Attempt to update the books after they have been closed for the financial year.  Consult the bookkeeper for advice. 
4. Close down a bank account with speaking to the bookkeeper first as they need to download transactions and have access to statements.
5. Procrastinate by leaving things to the last minute. 

Ultimately, the business is the winner when the owner, bookkeeper and accountant work together as a team!

TIME BUSINESS NEWS