How can you extract the most value from your Bookkeeper?

With the continuing advance of technology in accounting software, it is no longer a valuable spend to have a Bookkeeper just enter data – a lot of that can now be automated, so where does the true value of a Bookkeeper now reside?

To answer that, let’s look at the two main reasons why bookkeepers enter and organise accounting data:

  1. Compliance - the ability to track how much GST, Income Tax, PAYG-W, Payroll Tax etc. is owed to the relevant governing body and ensure this is lodged and paid on time. Sadly, this is where a lot of bookkeepers believe their role description ends - we disagree. Extracting the most value from your Bookkeeper lies in the second reason…
  2. Performance (management) reporting - using the data that's been entered and organised to measure current and forecast future business performance.

We consider point 1 basic administration; a necessary evil – however, we believe the true value of a bookkeeper is in point 2 - the preparation of accounting data for management and performance reporting.

Taking this one step further, here are 2 of the most important aspects of management reporting bookkeepers should be able to assist with:

  1. Budget vs. Actual reporting and accountability to the budget.
    It's all well and good to sit down at the beginning of the year and plan what the monthly revenue and expenses should be, but in reality, many business owners are shocked when they track what they are actually making… or not making. The more frequently management reporting is reviewed and the appropriate measures are taken to adjust variances, the better a business will run.
  2. Forecasting
    Once a business owner is in the habit of accurately tracking how their business has performed, they’ll be in a much better position to forecast how their business will perform.

We will always encourage the adoption of accounting technology to create efficiencies for businesses. There’s never been a better time to assess whether there is software that can automate accounting tasks for a reduction in expense, an increase in value or both.

Once the accounting software stack is in order, a great bookkeeper will ensure they’re taking full advantage of features to reduce manual tasks in order to focus on performance reporting.

Now we’re talking value.

Article provided by Noel Tiufino, Managing Director of My Accounts

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.