Most business and non-profit organization use bookkeepers as the first line of their finance team. Having the right person doing your bookkeeping is critical for smooth running of the finance department and for the success of the business. The Institute Of Certified Bookkeeper recently placed handy guide in hiring a bookkeeper, if it’s an employee or outsourcing.
The guide has been design for small business in mind, the tips are highly advised equally applicable to an NFP most cases.
Consideration for business outsourcing a bookkeeper
The bookkeeper on bulk of the day-to-day work, while an accountant and the tax agents typically involved in big-picture panning and end of year tax responsibility.
The bookkeeper generally touches every transaction a business does, and the accountant reports and accounts and not accuracy of bookkeeper transactions.
The bookkeeper creates and maintains the general ledger, the basis of the company’s management accounts.
How do you figure the difference between an independent contractor and an employee?
Contract of service:
This depicts the degree of control that can be exercised over the bookkeeper –the employer direct how, when, where and who is to do the work-that is the employee.
Contract for service:
The bookkeeper has freedom to work unsupervised to do an end result.
Control Test-the employer controls the service offered, how to do it, when they do it and hours of work and they are deemed an employee. If the worker has right to delegate the work, quote the job for estimation of time to complete job and find the task to be done them they are an independent contractor.
Integration Test- the contractor shows they have other clients presented to the public as a business produce a profit or loss of business then they are more independent contractor and not a part of the employers business.
Result Test-the bookkeeper is hired to produce a result and complete specific tasks despite of hours worked, thus an independent bookkeeper.
Risk Test-the bookkeeper is exposed to the risk of job, ready to fix any problems or errors exposed to a possible profit/loss on the job then likely to be a contractor. Visit this site for more information : http://www.bookkeeperco.com.au
Benefits of engaging an employee bookkeeper or outsourcing:
- Bookkeeper on site all the time, as agreed for any accounts or payroll matters
- Work on many project and varied task as needed
- Bookkeepers are an part of the business team
- Greater opportunity to your business
- They exercise high loyalty of the employee to your business
- Liaison between suppliers and business
- Bookkeepers are becoming a point of contact for staff concerns
Benefits of engaging an independent bookkeeper are:
- Reduce overheads by not running fixed commitment to pay PAYG tax, superannuation, and personal leave among others.
- The contractor is engaged for their independence and thus relying on them differently than you is able to do so for an employee.
- The contractor tends to be responsible for their own training and ongoing development.
- Not bound by employee regulations
- You aren’t paying for downtime
Employee and contract bookkeeper qualities:
Not considering the engagement, there are some important qualities you will need in a bookkeeper. The bookkeeper must have knowledge of relevant legislation, general accounting principle, and relevant knowledge to your industry. Other good qualities such as consistency, reliability, trustworthiness and honest must be accounted for with bookkeepers Melbourne.