When I first started out in this game, I was entering information to ledger cards and sending coded transactions to a data agency for input. Then the company purchased their very own PC with a 20MB hard drive! Our insanely expensive software was installed by an expert and we were sent to lengthy training sessions to master this newfangled thing.
Leap forward 25 odd years and all our Accounting can be done in the "cloud" with a laptop computer or a mobile device in the palm of our hand almost anywhere in the world. As with many other industries, technology has completely changed the way we do business.
While the principle of bookkeeping and accounting hasn't changed, the way that we do it definitely has. There are numerous software packages which "do the work for you", invoices can be created and emailed to the client, bills can be paid through apps and online banking and the software can even import bank transactions and "learn" where to post each entry!
So, if small and micro businesses can do their own books, what role does that leave for the ever reliable bookkeeper?
Have you heard of the GIGO factor? Garbage In - Garbage Out, in other words if you do not set up your accounts correctly, you can go merrily along invoicing, paying bills, calculating GST, paying your staff and at the end of the year your Accountant will tell you that they can't do anything with the information! Not only is this despairing for the DIY business person who thought they were doing great, it can be very costly to correct...but worst of all you may have been paying more tax than you needed to!
A good Bookkeeper generally has a lot of practical business experience along with the background training to understand what is happening in the back end of the Accounting software. They know how a ledger (yes old fashioned word) works, they have a good understanding of how assets, liabilities, equity, income, cost of sales and expenses all work together to create a great set of Accounts. They know the little tricks and cross checks that can be done each month and quarter which will identify problems before they become too huge.
So the answer to my original question "Do you really need me" is YES. If the question was "Do you need me daily, weekly or monthly to do your "books"? Then I would say no, probably not, providing you have the time, the attention to detail and are reasonably computer savvy. BUT you do need me to make sure that you avoid the GIGO factor.
How can I help you?
Consult with you to find the right software for your business
Liaise with your Accountant to set up your books including Debtors, Creditors and General Ledger.
Train you to correctly enter the regular daily, monthly and quarterly transactions.
Provide ongoing support along with monthly, quarterly or annual reviews before forwarding the file to your Accountant.
I love to help your emerging business by creating:
A great set of Accounts to make your life easier and your Accountant very happy
Effective Social Media profiles that will bring your more business your way
I'll even train you how to use them!
Eclectic mix of Bookkeeper and Social Media Marketer"
iManage Professionals Perth