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What you should expect for your small business bookkeeper in Melbourne

It takes a lot of effort to run a business, especially small businesses. As much as you want to do everything yourself, you only have 24 hours a day and despite the fact that you have multitude skills, bookkeeping might be your weakness. Therefore, you might want to hire a bookkeeper internally or externally. But what should you expect from a bookkeeper?

Here are 6 basic expectation you should establish for your small business bookkeeper to ensure he or she will “value add” your business entitlement:

1. Basic understanding of accounting is the fundamental expectation of a bookkeeper.

Why will you hire someone who does not have any basic understand of the difference between assets, liabilities, equity, income and expenses as a bookkeeper? It’s like hiring a fashion designer to be a plumber. Therefore, top on the expectation list is the understanding of the five basic types of accounts.

2. A bookkeeper should know the art of details and organisation.

Having the ability to be detail-oriented is important in accounting. Mistakes cost you something. You need to someone who can focus on small things, as small things will enable big things to fall in place properly.

3. A bookkeeper needs to have a bird-eye view.

He or she should be someone who is able to see things in a bigger picture. For example, if you want to buy a piece of equipment, it is not just about recording as an asset. What about the depreciation? They need to understand the concepts of setting up the asset and liability accounts like allocating payment to interest expense and the liability principal reduction.

4. Willingness to follow through is a responsible to expect from a bookkeeper.

As a small business owner, you are able to assist with questions but a bookkeeper should in charge of the financial projects, and has to have the responsible for the follow through to completion.

5. Of course, they need to prepare your business’s financial statement on time every month.

The three basic financial statements that a bookkeeper need to provide you with every month on time includes the balance sheet, the profit-loss statement as well as the cash flow statement.

6. Ability to do proper job costing is crucial.

Proper job costing means able to track down all the costs by item and job detail. It is critical to a small business success to accurately find out how much your project truly cost so that you know how much profit you are making.

These six expectations are reasonable expectation you should establish with your internal bookkeeper. On the other hand, if you wish to hire an external professional accounting company like m.a.s accounting, these expectations have been long instilled in our group of professionals who aim to “value add” your small business.

 
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