Being a small business owner in Adelaide is a challenge when it comes to financial obligations, which never seem to slow down. Bookkeeping services can come in quite handy when it comes to keeping up with the never-ending mountain of GST, BAS lodgements, payroll and year-end records. Many business owners don't know what small business bookkeeping entails or when it's worth hiring someone to handle it rather than doing it themselves. This article is written for the Adelaide-based sole trader, small business, and those who have always wondered whether their business structure is working.

So, exactly what is involved in small business bookkeeping?

The continuous activity of recording, categorising, and reconciling a business's financial transactions is called bookkeeping. For the majority of Adelaide small businesses, this involves bank reconciliation (matching accounting records to actual bank statements), accounts payable and receivable, payroll processing (PAYG withholding and superannuation) and preparing the BAS (before each quarterly lodgement).

For some business owners, this is done to some extent in the initial stages, and it might be sufficient as long as the number of transactions is not too large. After turning a profit of $75,000 or employing your first worker, the margin for error diminishes significantly. The ATO record-keeping rules do not account for busyness.

How much are bookkeeping prices in Adelaide at the moment?

In Adelaide, bookkeeping services typically charge between $50 and $120 per hour, with rates potentially varying based on qualifications and registration as a BAS agent with the Tax Practitioners Board. For typical businesses that process moderate monthly transactions, they usually pay a monthly retainer fee of $300-$600.

Cloud-based platforms such as Xero and MYOB range from $30 to $70 per month. Some Adelaide owners opt for a platform subscription, and a bookkeeper visits them from time to time, not necessarily weekly. This can be a good thing when there are regular transactions and the business owner is disciplined about maintaining orderly records between sessions.

Three unnoticed book-breaking habits

Make sure that only the accounts are opened at BAS time.

If your Small business bookkeeping is only done before lodgements, you won't have a picture of your cash position during the quarter. It also means you will have to complete more remediation before you can file a return, and that will mean more money you have to pay your Accountant!

Combining personal and business expenses into one account.

Typical of self-employed people. Each time money is used for a personal transaction on a business account, additional reconciliation effort is required, making it difficult to determine which expenses are truly deductible. It can be easy to overlook until tax season, and it costs you money to untangle it.

Assuming accounting software will take care of the categorising

Xero and MYOB make bookkeeping faster. They don't make decisions. The bank feed work remains pending; transactions still need to be matched to the appropriate category, and unmatched transactions can continue to accumulate. When left unsupervised, these can cause actual issues by BAS time!

Why dirty records are more expensive than you believe.

The lack of bookkeeping services can come back to bite you. Penalties and interest are charged by the ATO for any BAS lodged incorrectly. If a super payment isn't made on time, you may be liable to pay a Superannuation Guarantee charge. A payroll error that isn't identified for months leads to a compliance problem that is difficult to correct in the back. It is not an option for Adelaide businesses above the GST threshold to get these obligations wrong. Fixing errors is usually much more expensive than small business book keeping would have been initially.

So, what you need to look for when you look for accountants near me.

“Accountants near me” is a good initial search term, but there are some things that you should verify before you hire anyone.

If your bookkeeper prepares and lodges BAS on your behalf, they must be a BAS agent. This is easily checked on the Tax Practitioners Board website (tpb.gov.au) in less than a minute. In addition, you should seek someone with experience with your accounting software, who understands your niche, and who is honest about which services are included and which are excluded from your fees.

Knowledge of the industry is more important than you think. A bookkeeper who frequently works with trade companies will be familiar with retentions and progress invoicing. For those who primarily work in retail, they will understand how to manage stock-on-hand adjustments. Questions to pose before making assumptions.

Things to consider before you sign up

If I'm already using Xero or MYOB, do I need a bookkeeper?

Most likely yes. While accounting software will process bank feeds and create invoice templates, it won't automatically categorise all transactions accurately, nor will it tag items that don't look “normal”. A bookkeeper maintains your records so they don't fall apart while your accountant or the ATO is reviewing them.

Are there any differences between bookkeeping for small businesses and full accounting?

Small business bookkeeping includes daily recording of transactions, payroll and BAS. Accounting includes year-end taxes, financial statements, and strategic advice. They're complementary to one another. The majority of small businesses in Adelaide rely on a bookkeeper and an accountant, respectively, once a month and once a year.

What are the best Adelaide bookkeeping services to look for?

Check the status of being a BAS Agent with the TPB's public register. Ask other business owners in your industry for referrals. Most good bookkeepers will provide a free consultation prior to commitment, which should be treated as an interview.

If there is a mistake in my BAS, who is responsible for that mistake – my bookkeeper?

It will depend on the setup. A registered BAS agent preparing and lodging on your behalf has professional obligations under the Tax Practitioners Board Code of Professional Conduct and should have professional indemnity insurance. Confirm both upfront.

While you are in the middle of a call

If your books are a couple of months or more out-of-date, or if you can't tell at a glance what cash you have on hand, there you have it. A perfect bookkeeper doesn't simply record. They are why you are aware of what is going on in your business, and not only what is going on later.

There are plenty of Adelaide bookkeepers available. The ones you want to work with speak clearly, are familiar with your industry and make BAS time less stressful. Verify their credentials, inquire about their typical client base, and make the first meeting the first job interview.