An eCommerce business typically involves fast transactions and quick money transfers. If your online business is lucky enough to experience the same things, then all your hard work is slowly paying off. When in this position, most people would encourage you to hire someone else to manage your cash flow for you—but is it truly necessary for all cases?
If you have an eCommerce business and are thinking about whether you should get an accountant and bookkeeper, this article would help you understand how they can help your business thrive.
The Advantages of Hiring Professional Bookkeepers
First things first, hiring a bookkeeper and an accountant is not an absolute requirement per se. However, that is only if you know how to do your bookkeeping and accounting yourself—and you have the time to do them well and run your business at the same time. However, if you cannot commit to any of these or you have no idea of the kind of work you need to fulfil, letting a specialist do the work for you can help you in many ways!
Here are some of the many benefits of hiring a professional to manage your business finances for you:
1. Bookkeeping Is the Beginning of a Smooth-Running Business
Bookkeeping is the process of recording and organising all the transactions of a business. It primarily focuses on the day-to-day business' financial transactions, ensuring that every record is accurate and balanced.
When a business has no proper bookkeeping method, there is a higher risk of inaccurate accounting. When that happens, your accountant would be using incorrect data, which therefore loses the view of your business's finances. It could affect how they see your business' performance, resulting in wrong business strategies and decisions in the future!
You can avoid this if you have a dedicated bookkeeper focusing on recording your everyday business transactions. With their help, you and your accountant can prevent unnecessary and unwanted surprises involving money and taxes.
2. Bookkeeping Allows Accurate Business Forecast
Numbers play a significant role in businesses. If you have a reliable record, decision-making would be much more manageable and efficient.
For instance, business numbers serve as a basis for a company's financial forecast. By understanding how your business performs, you can set realistic and feasible business goals moving forward.
Thanks to the hard work of your bookkeeper and accountant, you get to make informed business decisions. Their service helps the company plan and prepare. It also lessens the risks associated with scaling and growth in your business’s future.
3. Accurate Bookkeeping Guarantees Clean P&L Statements
In Australia, a Profit and Loss statement (P&L statement) is a requirement that all businesses need to fulfil. The report showcases a company's sales, the cost of goods sold, and the operating expenses for a particular period. In short, it is a document that tells how much your business is making or losing. Besides helping you manage your sales better, it would also help you sell your business more profitably if you plan to.
Having clean P&L statements is one step of proving that your business has an accurate and clean record-keeping. If interested buyers of your business find out that you have inaccuracies on your P&L statements, they will start to question your business's entire performance—causing it to lose its value in the long run.
Conclusion
Whether you have your own eCommerce website or are using other online selling platforms to sell your products, letting bookkeepers and accountants perform their tasks on your behalf can do your business good. They help establish a system and reliable process, making your business more efficient and equipped to grow. Let the experts take care of the things they are more knowledgeable about and use your time to focus on growing your business instead.
If you think the enumerated advantages would benefit your business, get yourself a bookkeeper and accountant today! The ECommerce Accountant is your premium source for experienced online accountants and bookkeepers in Australia. We are ready to help business owners increase their profit while minimising their taxes. Book a free strategy session today!