What Businesses Need Bookkeeping the Most?

Monday, 23 Aug 2021

Bookkeeping is an essential part of running a business in Melbourne and managing its finances. Since every company needs to keep an accurate and up to date record of its transactions, generate financial reports, manage payroll, and pay taxes, they need to perform bookkeeping.

While some entrepreneurs continue to do it themselves because they have a small set-up with limited sales, others usually rely on professional bookkeepers in Melbourne to reduce the workload. They can be hired to work in-house, or the task can be outsourced.

They are specialised and qualified individuals that help all types and sizes of businesses to keep track of their finances. However, the bookkeeping needs of the entity vary according to the type of industry.

Some small ventures need to complete basic accounting tasks, while medium and large-sized corporations need a proper bookkeeping setup. Here is a list of the businesses that need this service the most.

 1. Retail Stores

Retail stores in Melbourne are always brimming with customers and have to keep track of a high volume of sales. Besides the daily transactions, these ventures have to manage their inventory, payroll, expenses, and taxes. Stock management is a vital aspect of running a retail business because the sale of its products depends on it.

Thus, all retail businesses rely on professionals to take charge of their finances and stock. With a retail business, the bookkeeper has to stay on top of inventory management and budgeting. They aid in invoicing and paying the bills on time and creating weekly reports.

They make sure that the tax deadlines are met on time and the business account is separated from the personal account of the retailer. They maintain a positive cash flow and cut down on redundant expenses to make the retail business in Melbourne profitable.    

2. Healthcare Providers and Pharmacists

The healthcare industry in Melbourne includes doctors, chiropractors, dentists, surgeons, aged care professionals, pharmacists, etc. All of them have to comply with government regulations to complete their accounting liabilities.

They require the support and guidance of bookkeeping companies to help with the billing process, insurance, and compliance with ATO, BAS, PAYG, STP and Payroll Tax. These professionals are well aware of the specific accounting requirements of the medical industry, such as the Medicare rebates and private health insurance rebates.

From patient invoicing, bulk billing and mixed billing to private insurance billing and financial reporting, they complete each task on time to free up the practitioner or pharmacist so that they can focus on their work. In addition, they provide guidance about increasing revenue and reducing expenses.   

3. Hospitality Businesses

Restaurants, cafes, bars, and hotels in Melbourne are swarming with customers and teeming with activity. It is hard for the manager or the owner to deal with the billing and then recording all the numbers without any errors.

They are already busy serving, entertaining, and interacting with the customers, and it leaves them with no time to focus on the finances. Thus, they need bookkeepers to take charge of their books for professionally managing the record of every sale.

Bookkeepers perform a variety of functions for hospitality businesses in Melbourne, including payroll management, managing the work schedules of the staff members, regular financial reporting, tax calculation, timely supplier payments, customer invoicing, etc.

4. Manufacturing Businesses

A manufacturing business is always in need of a professional bookkeeper to calculate a variety of expenses, such as cost of labour, cost of the goods and other direct expenses. All these need careful attention and dedication to get the desired records. Thus, most of the manufacturing business owners in Melbourne outsource the task to avoid wastage of their time.

The professionals are able to follow up with the supply chain members and get the vendors paid on time. They make sure that the stock is present at optimum levels and the payments from clients are received without fail.

5. Real Estate Businesses

Most businesses operating in the real estate sector of Melbourne witness frequent deals that involve a large amount of capital. The agents have to keep track of the taxes and other regulations every step of the way.

It can be challenging when they have a plethora of other tasks on hand, such as documentation, client servicing, property tours, property maintenance etc. Also, one has to be good with numbers to make calculations with big numbers.

Thus, they prefer hiring bookkeepers who take away the stress and workload of managing transaction records, calculating taxes, complying with the government regulations, and more.      

6. Universities and Educational Institutions

Accounting for educational institutions in Melbourne can be daunting without the help of professionals. Whether it is a school, college or a university, the institution needs to keep track of fees from students, collection of charges and fines, expenses on maintenance, payroll of the staff, grants and donations, fee waivers, etc.

Also, there is a risk of embezzlement involved in such institutions. Thus, it becomes necessary to hire bookkeepers who can manage all the financial records and conduct regular audits and bank reconciliations to keep everything in check. Only experts in the domain can do justice to bookkeeping for educational institutions, and that is why the task is often outsourced.     

Conclusion

Many industries need specialised bookkeepers in Melbourne to make sure their finances are tracked and managed proficiently. They are needed to improve efficiency and to continue generating profits and a return on investment.    

 

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