When business is booming
You have started receiving calls from potential clients that are interested in your service, soon you are busy getting work done and the money starts coming in and you are set for life! Well, not quite. As your Trade business grows, there are certain obligations such as tax, licensing and employment laws that come with it.
These obligations cannot be ignored if your goal is to grow your trade business into a formal entity that is profitable, debt free and tax compliant. This leads us to the question that most Tradies ask; “When should I hire an expert to assist with these key areas?”. Since your business is still growing, you might not be able to hire a full time Accountant or Bookkeeper, however there is the option of hiring a consultant on a part time basis, which is still as effective.
So, the best time to hire an expert or consultant to assist you with your financial planning is as soon as possible! Starting your business on the right note gives you the assurance that your business is secure, and you are aware of any potential risks that you may encounter.
Hiring a Bookkeeper
A bookkeeper takes care of the day-to-day tasks that your business encounters, such as updating the company's payroll, submitting and following up on invoices and ensuring that all the bills are paid on time. We have outlined below, 4 reasons why you should consider hiring a bookkeeper for your trade business:
Free up your time
There is a lot of time investment needed for any business to grow and hiring a bookkeeper can help free up your time as the business owner, to focus on other key business functions such as marketing and business development.
Settle payments on time
A bookkeeper is an extension of the business that ensures the smooth flow of operations. Some bills are often overlooked until something goes wrong resulting in missed deadlines or unnecessary disruptions. However, a bookkeeper will is responsible for ensuring that bills such as rent, power, postage, phone and supplies for goods sold are paid on time.
Being compliant with the law is not an option. Trade businesses are required by law to file their taxes in order to avoid hefty fines. A bookkeeper can ensure that your income taxes, payroll taxes, workers' compensation and sales taxes are up-to-date. Furthermore, a bookkeeper helps to ensure that all your documents are filed and up to date for ease of reference or auditing purposes.
Reduce the costs
A bookkeeper is the financial watchdog over your business, always on the lookout for cost saving opportunities or regulatory updates that can affect your business. A bookkeeper also monitors your budgets and helps you stay on track of your annual or quarterly financial goals.
At Tradies Accountant, we specialise in bookkeeping for trades-based businesses, so you know you are getting the most relevant information for your industry, consistent delivery of monthly reporting, as well as systemised processes for accurate cash flow projections.