During their early days, many small businesses have no choice but to combine many core functions together, including bookkeeping and administration tasks. As a business continues to grow, at some point, as a business owner you may need to separate the administrative and accounting functions. This will ensure that your business can run smoothly and more efficiently. Knowing the difference between bookkeeping and administration tasks will help you effectively create two roles that complement each other. So how do you identify when you need to hire either a Bookkeeper or an Administrator?
When should you hire an Administrator?
- You are doing administration tasks when your time could be more productive elsewhere.
- Your office needs someone to manage and maintain the constant flow of paperwork.
- When you need someone to manage your diary and appointments.
What makes an amazing administrator is not necessarily how many pieces of office equipment they can operate. The value they bring to a business lies in how they support the business owner and reduce your administration workload. They take care of the background jobs that need to be done so you can focus your time on the valuable relationships with your clients and move your business forward, vital actions required to generate future growth.
When should you get a Bookkeeper?
- You are spending more time on financial record keeping that working on your business.
- You are not confident that your record keeping is as accurate as it should be.
- GST return filing is often actioned late or at the very last minute.
- There is no budget in place or minimal understanding of current and future cash flow.
- Payroll has become stressful and more time consuming.
- You cannot clearly answer the following:
- What bills do I owe and who owes me?
- Did I make enough money this month?
- Am I meeting my filing deadlines?
- How do I accurately process payroll?
You may have discovered that by owning your own business you spend more time than you thought you would trying to keep track of the financial paper trail, instead of doing what you enjoy. Wouldn’t you rather get back to doing what you enjoy, use your strengths and skill set to build your business, rather than having to worry about administration and bookkeeping?
As a business owner you may not have the time, energy or skills required, so if you are spending time looking at your books and wondering if they are accurate or correct, it may be time to bring in the expert. With a certified Bookkeeper on your side, your business can be more profitable, more efficient, and more competitive. You will get accurate reports that reflect your business activities, enabling you to make informed decisions that will keep your business moving forward. All those deadlines – they are met without you giving them a second thought.
Now that you know the difference make sure you don’t hire an Administrator to do a Bookkeepers job! Talk to GoFi8ure about our bookkeeping and accounting services, tailored to meet your business needs.
You did not get into business to be a Bookkeeper but we did, so talk to us about outsourcing your bookkeeping by emailing us on firstname.lastname@example.org