Your Bookkeeper is Not Responsible for Your Cashflow
As a bookkeeper, I understand the unique relationship we share with business owners. We are often the closest people to you in your business, serving as your go-to resource and biggest cheerleader.
Bookkeepers often:
Pick up the phone when you have a question.
Know your business patterns and behaviours because we’re regularly in your files.
Have a broad knowledge base to point you in the right direction when you need help.
Act as a buffer between you and your accountant, helping you navigate complex conversations.
Simplify the jargon so you can understand what other professionals are saying.
Provide extra support without additional charges, ensuring you don’t get surprise bills.
We’re with you every step of the way, and sometimes, we know your business almost as well as you do.
The Role of a Bookkeeper
Professionally, bookkeepers who are also registered BAS Agents (be sure to check if your bookkeeper is registered) are engaged to meet your bookkeeping and payroll requirements using your preferred software and to an industry standard.
This means bookkeepers:
Allocate bank transactions to categories while checking with you for clarity and determining tax deductibility.
Process payroll based on your direction, in compliance with Fair Work, workplace agreements, and relevant awards.
Support your income recording by:
Creating or teaching you how to issue invoices.
Linking software to booking platforms or CRMs
Integrating point-of-sale systems
Creating payment claims and invoices
These tasks culminate in the creation, checking, and lodgement of Instalment Activity Statements (IAS) or Business Activity Statements (BAS) on a regular basis. Once complete, bookkeepers advise on amounts payable or refundable for the period in question.
What Bookkeepers Are Not
Despite being integral to your business operations, bookkeepers are not responsible for everything. Here’s what we’re not:
Responsible for Your Spending
Seriously, do you think we’re going to follow you around and stop you from swiping your credit card? Your spending is your responsibility.Financial Advisors
Bookkeepers are not registered to provide financial advice. We can share general knowledge and help you understand your historical figures, but for financial advice, you need to consult financial planners or accountants.Fortune Tellers
We can’t predict the future or tell you how to spend your money. However, we can support you in analyzing past trends and generating reports to better understand your business’s financial history.
Cashflow Management and Bookkeepers
When it comes to managing your cashflow or spending, bookkeepers can absolutely be involved in the conversation. We can provide valuable insights, analyse past trends, and help you understand your financial reports.
If a client needs support, I’m 100% here to assist. However, it’s important to understand that bookkeepers are not solely responsible for your cashflow decisions. Managing cashflow requires collaboration, planning, and accountability on your part as the business owner.
Here are a few tips to help you manage cashflow effectively:
Create a Budget: Start with a realistic plan for your income and expenses. Monitor it regularly to stay on track.
Understand Expenses: Focus on understanding all the costs that are associated with your business, paying close attention to essentials like payroll, rent, and taxes before other discretionary spending.
Have a system: Some people use multiple bank accounts, others use the one bank account with spreadsheets. Whatever system works for you, use it, stick to it but make sure you review that it’s working. A system is only as good as now often you check that it’s working and you are on track
Monitor Payment Terms: Keep track of your invoices and follow up if you aren’t getting paid.
Use Reports Wisely: Regularly review reports to understand your income and expenses. This helps you understand your business (particuarly if you are seasonal), identify sales and spending patterns and help understand key areas you may wish to improve.
Bookkeepers are here to guide you every step of the way, but your active involvement in these strategies will make all the difference.
Words by Jahna Koehler
I’m a business consultant and bookkeeping specialist based in Queensland. My love for numbers began in my teens when I’d tag along to tax appointments, sparking an early fascination with numbers..
Over the past 15+ years, I’ve gained extensive experience working in and with businesses, as well as founding and successfully selling my own specialised accounting practice.
Beyond just managing their books, I’mpassionate about training and educating business owners to truly understand their finances and business operations. My goal is to help them make informed decisions with confidence and build a sustainable, thriving business for the future.
General Advice Disclaimer
All information provided in this article is for general information purposes only. It is not intended to be, nor should it be read as, specific health, business, or taxation advice. Readers must exercise their own independent skill or judgment or seek appropriate legal, financial, and taxation advice relevant to their individual circumstances. For further information, visit: https://keepingbalance.com.au/disclaimer
