Imagine the ideal day at your trade business. Clients are raving about your work, your team is running smoothly, and you can focus on growing your business.
But then reality hits. A stack of invoices lands on your desk, payroll needs processing, and you face a mountain of receipts — all on top of being on-site to take care of your jobs. Suddenly, that idyllic day feels miles away.
Sound familiar? We get it! Bookkeeping tasks can quickly become a burden for busy trade business owners.
Here are 8 Signs That It’s Time To Outsource Your Bookkeeping:
- Lack of Time
Does bookkeeping take away from valuable time you could be spending on-site or securing new contracts? - High Overhead Costs
Hiring in-house accounting staff comes with significant overhead costs. Professional bookkeeping services can be a cost-effective solution, freeing up resources for essential tools and equipment. - Under-trained or Overworked Staff
Unprepared staff can lead to inaccurate data and missed deadlines, which can cause delays in project timelines. - High Dependence on One Employee
What happens if your bookkeeper leaves or takes time off? Outsourcing bookkeeping for small businesses provides you with peace of mind. - Inability to Scale Up or Down
Outsourcing allows you to adjust your bookkeeping needs as your business experiences busy or slow periods. - Unable to Access Vital Figures
Timely access to financial data is crucial for making informed business decisions, such as whether to bid on a new project or invest in new equipment. - Discrepancies
Outsourcing helps ensure proper separation of duties, and professional bookkeeping services minimise the risk of fraud and errors, which is vital when managing multiple projects and clients. - Lack of Updated Knowledge
Accounting regulations and the latest software technologies to streamline your record-keeping change frequently, and outsourced professionals ensure that you are always kept up-to-date — whether for compliance or for scaling your business.
Keeping Your Trade Business Financially Fit
Here are some practical tips to help you manage your finances, even if you’re still handling the bookkeeping yourself:
Go Cashless
Consider digital payments whenever possible to streamline transactions, reduce human error, and improve cash flow management. Consider offering contactless payment options for both in-person and online transactions. Encourage guests to pre-pay for services or amenities to reduce the amount of cash handling required by your staff, as this will also help you forecast revenue and plan for upcoming expenses.
Know Your Taxes
Research and understand the various taxes applicable to trade businesses in your region. This may include income tax, GST, and payroll taxes. Consider getting professional bookkeeping services to ensure you are filing the correct tax forms and adhering to all tax regulations. Don’t forget to factor in seasonal fluctuations in your tax planning, such as the end-of-financial-year rush.
Understand Tax Deductions
Take advantage of tax deductions specifically applicable to hospitality businesses. Common deductions include expenses for:
- Tools and equipment (purchases and rentals)
- Marketing and advertising costs (website maintenance, online ads)
- Staff costs (salaries, wages, benefits, uniforms)
- Supplies and materials
- Vehicle expenses (maintenance, fuel)
- Professional service fees (accounting, legal)
It’s important to maintain detailed records of all your business expenses to support your tax deductions.
Find the Right Accounting Software
Look for accounting software designed for small businesses in the hospitality industry. These programs should offer features like:
- Automated invoicing for rooms, meals, and other services
- Online payment processing integration
- Expense tracking and categorisation
- Payroll processing capabilities
- Inventory management tools (especially for restaurants or bars)
- Reporting features that provide insights into sales, revenue, and profitability
- Mobile access so you can manage your finances on the go
Many accounting software programs are out there, but we recommend Xero to streamline your invoicing, expense tracking, and payroll.
Review Your Expenses Regularly
Schedule regular time (weekly or monthly) to review your business expenses as this will help you identify areas where you can cut costs and improve profitability. Look for recurring expenses that can be negotiated or eliminated, and consider alternative vendors for supplies or services to minimise costs.
Way Better Books: Your Partner in Hospitality Accounting Success
Managing a hospitality business is demanding, but you don’t have to go it alone when it comes to finances! We understand the unique challenges faced by hospitality businesses, and our outsourced bookkeeping for small businesses are designed to streamline your financial operations.
From efficiently managing your daily transactions and payroll to providing insightful financial reports, we’ll handle everything. We’ll ensure you stay compliant with all relevant tax regulations, freeing you up to focus on what matters most – delivering exceptional service to your guests.
Contact Way Better Books today for a consultation! and see how we can help you achieve squeaky-clean financials for success!