Building a Competent Finance Team for Your Business
Running a small business can often make you feel like you have to perform all tasks yourself, especially when you’re just starting. Whether it’s due to budget constraints or the feeling of needing to prove yourself, juggling all these responsibilities may seem like the right thing to do. However, when you have too much on your plate, the rest of the business can suffer, particularly when you aren’t experienced in some of these aspects!
Tackling the financial part of your business without much knowledge or experience can do more harm than good. Instead, consider leaving this to a competent finance team composed of small business accountants and bookkeepers, who will know everything that needs to be done regarding your finances and taxes. That way, you’ll stay while ensuring a stable financial position.
Building Your Finance Team
When you’ve just launched your small business, you may balk at the prospect of adding more employees when you’re still trying to make a profit. Given all the overhead costs you’ll have to account for, hiring more team members can be incredibly expensive. The great news is that you can have your own finance team without the expense of expanding your employee headcount by outsourcing them.
Hiring business accountants and bookkeepers from accounting firms offers you more flexibility, better support and gives you access to expert advice. Outsourcing your finance team allows you to grow your finance team instantly when needed or to scale back when you’re hurting for resources. When you’ve experienced a sharp increase in demand for your goods and services, you’ll need to make sure every decision you make is financially sound, with which small business accountants and bookkeepers can help you.
When your business grows, you may want to add more professionals to your team or hire someone for an in-house team and shuffle the roles. Regardless, an outsourced accountant and bookkeeper will give you the expertise and support you need to make your venture thrive.
The Roles and Responsibilities of Accountants and Bookkeepers
Your finance team will consist of accountants and bookkeepers, although many entrepreneurs do not understand the difference between the two. Most businesses begin with one or the other but will eventually hire the one they don’t have. Sometimes, their roles overlap, but they perform different enough functions to merit two distinct positions in your organisation.
Bookkeepers focus on your day-to-day transactions and financial records. They input raw data into the software so that it can create reports. They also take care of primarily administrative tasks like payroll, accounts receivable, and accounts payable.
On the other hand, accountants concentrate on studying and analysing the reports, adjust their calculations to comply with tax legislation and reporting standards, and determine how the business is performing. They take on a more advisory role, helping entrepreneurs make smart decisions about their business.
The Break Down of Tasks
To illustrate the differences more clearly between the two roles, here are some tasks that bookkeepers and accountants take on:
Posting debits and credits
Recording and grouping financial transactions
Creating and sending invoices
Maintaining and balancing bank reconciliations
Analysing and creating financial strategies
Tax planning and strategy
Preparing adjusting entries
Filling out income tax returns
Preparing financial statements
A solid financial position is essential to a successful business. By focusing on building a competent finance team during the early days of your venture, you’ll make sure that you make sound financial decisions that will propel your company’s growth.
New Wave Accounting is one of the top Gold Coast accounting firms with small business accountants and bookkeepers to help your business succeed. We offer end-to-end services that we tailor to suit your needs, ensuring we provide you with feasible solutions that bring your desired results. Book a free 30-minute strategy session!