Why a Bookkeeper Is Worth Their Weight In Gold

At times, as a bookkeeper I’m asked by some of my clients what tasks I do for them other than entering transactions and lodging their BAS. Now don’t get me wrong, my clients aren’t down playing the valuable role I undertake for them, they are highly appreciative that I’m removing the stress of their record keeping and financial management and giving them piece of mind.

Beyond this crucial role, bookkeepers can provide so much extra valuable insights into their client’s business. Most contract bookkeepers work for a number of businesses, have gained insight into those industries. Business owners should be picking their brains on best practice methods and systems as well as the bookkeeping. Alas, the knowledge stored in the bookkeeper’s head are sadly under-utilised. 

For example, when was the last time you checked the average length of time your customers paid you? How does it compare with your credit terms of payment? If you haven’t checked, why not? Every business needs positive cash flow. If you allow your customers/clients to pay outside your terms of payment, it’s subconsciously inferring that promptly paying your invoice isn’t a priority, and they may pay other suppliers who are far stricter in collecting the money they’re owed. How much is that costing your business? Ask your bookkeeper or person handling the record keeping to give you a report on the current status of time taken to collect payment. Just this alone could be the difference between you succeeding and failing in business.

Conversely, what about paying your suppliers? Do you wait until your supplier issues a final warning for late payment and threatens withholding stock. As a bookkeeper I have discussions with clients that some suppliers offer good discounts for prompt payment. I know on average how much is purchased from the supplier over a financial year and what likely amount would be saved paying on or before the due date. It may not be much per supplier, however over a year it could be a considerable amount.

These are but two examples of how bookkeepers can positively affect a business. Over the next few weeks, I’ll share other examples and scenarios of how bookkeepers can make a positive impact into a business. These will include:

Budgets

Class, Job and Location Tracking

Inventory

Billable Expenses

Markup

If you would like to discuss your bookkeeping requirements or how to improve your record keeping, contact info@bookkeepingconcepts.com.au