You have two options for bookkeeping: hiring a bookkeeper or doing it yourself (D-I-Y)..

Hire a Bookkeeper or Do-It-Yourself?

Here is what you should know about the pros and cons.

At a quick look, it may seem simple to distinguish between the two. A bookkeeper offers advantages such as giving a comprehensive view of your bookkeeping, while the DIY method, although more challenging, may save you money. However, there are more factors to consider in both bookkeeping options that may make your decision difficult.

In this topic we’ll tackle the disadvantages and advantages of both..

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Advantages of hiring an external bookkeeper:

1. Neutral perspective on bookkeeping and financial health, allowing you to focus on other aspects of your business.

2. Reduced risk of bookkeeping problems such as ATO tax audits, overpayment or underpayment of taxes.

3. Convenient access to bookkeeping records, saving both time and money. The bookkeeper is also more familiar with your business and its potential transactions, reducing the chances of any issues."

Disadvantages of hiring an external bookkeeper:

1. Incompatibility with existing bookkeeping software - an external bookkeeper may prefer to use their own software instead.

2. Error-prone process - internal bookkeepers may make mistakes in the bookkeeping process or lack full knowledge of your industry's requirements, causing issues with financial transactions and consuming your time.

3. Time constraints - even with a bookkeeper, keeping track of financial records and ensuring accuracy of transactions can be time-consuming, especially during an audit.

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Advantages of doing bookkeeping yourself (D-I-Y):

1. Cost savings as you won't need to pay someone to do the work. This option is suitable if you are already familiar with tax filing, document organization, and bookkeeping software.

2. Confidentiality of business records, which is important for businesses that value the privacy of their customers and employees.

Disdvantages of D-I-Y bookkeeping:

1. Time-consuming - Keeping track of receipts and records, collecting and organizing financial transactions, uploading information to bookkeeping software, and correcting mistakes could take a lot of time away from running and expanding your business.

2. Risk of mistakes - Without professional bookkeeping experience, there is a high likelihood of making errors with your books, leading to incorrect tax information and possible fines or audits.

3. Costly in the long run - While DIY bookkeeping may save money in the short term, mistakes can end up costing more in the long run.

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Save yourself the hassle and avoid potential mistakes by hiring a professional bookkeeper instead of tackling bookkeeping on your own.

An expert bookkeeper can get your financial records in order, and guarantee that your tax documents are in good order.

For any assistance do not hesitate to reach out to us at info@lyndengroup.com.au or dial (03) 8548 1843.