Outsourced Accounting
Small business owner who runs the business with limited resources may find it difficult or not justifiable to get a full-time accounting staff. Often the owner himself/herself or a junior admin staff may have to do the bookkeeping.
With a small business accounting software such as QuickBooks, MoneyWorks, MYOB, Sage 50, and Xero; non-account trained person may be possible to manage the book “partially”.
If you have set up the items correctly by yourself or with the help of a trainer, you can record the Sales Invoices and Purchase Invoices (Bill) without a problem. When recording a purchase invoice with a product item, it will update the Accounts Payable and Inventory Asset account. When the item sold, you record it in a Sales Invoice transaction. Most of the accounting systems will take care of the journal entry behind the Sales Invoice transaction without you worry which account it posted.
With a small business accounting software, you can check the GP (gross profit), the stock on hand, the accounts payable and the accounts receivable any time when you need it. This accounting information should be adequate for the business owner to have an understanding of his/her stock level, what sell best, who owes you money, and whether you have achieved the monthly or yearly sales target. You can replace the Sales Invoice or Credit Note, which you have printed from a word processor or spreadsheet, with an invoice form printed directly from the accounting software.
However, recording the Sales Invoices and Purchase Invoice (Bill) with products are just part of the accounting process. A bookkeeper needs to understand the nature of the account and classify them accordingly.
For example, when you buy a motor vehicle, you need to know how to record the transactions into the relevant Accounts Payable, Fixed Assets, Loan Liability and the Bank account. Besides, you have to prepare the depreciation schedule and pass a journal on a monthly or yearly basis.
GST (Goods and Services Tax) management is another area that a bookkeeper needs to know. You need to know what are those expenses which are claimable and which are not. You need to tag the transaction to the relevant GST code and prepare a GST Form 5 report after your GST cycle.
The above are just a few examples of what a bookkeeper did. Instead of struggling with the account or ask someone who is not qualified to do the accounting job, you may consider working with an outsourced accountant (or bookkeeper).
It is worth consider getting some help and free yourself up to do what you are good at, build your business.
Manage beyond, outsource.