A tale as old as time, and one folks in the hospo industry are often debating: to do the books yourself, or outsource the task? In this month’s blog we look at what bookkeeping actually is and if it’s possible to do yourself. Read on, reader!

So, what is bookkeeping?

Bookkeeping encompasses the organisation of business transactions into a specific format to report to the ATO and show how the business is doing. In hospitality it can be complicated because generally there’s more paperwork and moving parts than other industries.

So, isn't it like accounting?

It’s similar, yes! Though accountants usually charge significantly more for their services so it makes more sense for an accountant to focus on accounting tasks instead of bookkeeping. While it’s common for accountants to do bookkeeping tasks, it can be fiddly, time consuming and not exactly the same thing.

Accountants mainly work on bigger picture jobs but need to trust the information coming in via the bookkeeper is correct. Accountants prepare company tax returns and work to ensure businesses pay the correct tax. They also consider personal tax situations to ensure you pay the lowest possible.

Does doing it well matter?

Absolutely! The bookkeeping bits related to tax certainly matter – there are fines and penalties for not keeping accurate records, avoiding tax or making false claims.

Outside of that, it’s up to business owners to check how the business is doing. Keeping accurate numbers and key numbers flagged will help you spot issues early and keep the business healthy. Additionally, when it comes to time to sell your business, having tidy and complete financial reports is essential to get the best price. 

What about payroll?

Payroll is a separate thing and can get very complex very quickly. Ignorance is no excuse for paying your staff incorrectly, and even big companies make mistakes. It’s essential things like annual leave loading, time in lieu, correct award rates, termination payments, wages reports, PAYG withholding on the BAS and Instalment Activity Statement are processed correctly. If you get audited by the ATO (for under payments or incorrect penalty rates for example,) a bookkeeper will need to fix it anyway.

So, can I do the books myself?

The short answer: if you’re good with numbers, capable of wrangling Xero (or other modern accounting software like Xero) and attention to detail, yes. There’s certainly a learning curve and we’d advise engaging a professional like us to get you setup, but entering invoices, receipts, paying bills and raising invoices is well within the skill set of most people.

Being hands-on with your financials is great for any business owner and doing the day-to-day work yourself will only increase your understanding. Our support-only service is a great option if you feel capable of tackling the above tasks. 

I have a lot on, should I do my own bookkeeping?

If you don't enjoy the little details, have a busy week or don't get on with computers, it’d be best to avoid managing the books yourself. If you do it yourself and do it badly or get behind or cut corners you could damage your business, and it may cost you a lot more to fix it!

The best safety net

At Cafe Bookkeepers we really support business owners with getting their hands dirty and digging into the financials! Our Support-Only package is a good fit if you’re well-versed with with accounting software but wouldn't mind a back-up dancer. With Support Only we’re always available at the end of a call or email for any questions, will check over your work as you go and lodge your BAS for you each quarter.

We also have a new payroll support package to help with the tricky bits such as employee onboarding, calculating leave balances and integrating rostering or timesheet software. For many clients, our support services offer the best of both worlds and start from only $50 per week.

Still concerned? We offer a series of hospo-specific bookkeeping and accounting services for ALL hospo businesses, not just cafes. For more info on how we can help you, enquire here.