Who is a book keeper?
A book keeper is an individual, who is saddled with the responsibility of recording the day-to-day financial transactions of a business organization. The books kept by the book keeper gives the management of a business organization a guide on how to make decisions.
Now, the answer to the question asked is ‘Yes’. A book keeper helps to increase the business profit of a business organization.
How does a book keeper help to increase business profit?
- Proper documentation: A book keeper is saddled with the responsibility of keeping proper records of the transactions that a take place in an organization from day-to-day. This gives the management of such an organization a bird’s eye view of the progress of sales and expenses made by the business organization, which is very important in making good decisions and formulating policies that suit the organizations present state as reflected by the document kept by the book keeper.
- Optimum pricing: Never under-estimate the ability of a book keeper in enabling you realize maximum profit, while minimising loss incurred by your business organization. Having a book keeper in your organization would help you place the price of your goods at an optimum level. This is because, the sales records kept by your book keeper would go a long way in giving you a clue to how much each of the goods should be sold to realize a maximum profit. See more.
- Financial decisions: Without a book keeper in your organization, the possibility of over spending cannot be ruled out. However, a book keeper helps you make shrewd financial decisions, prepare sensible budgets and make the most out of your financial year. With a book keeper, you know when and where to spend certain amount of money to enhance your business’ strength and improve customer satisfaction.
- Stock taking: A book keeper keeps track of the progress of sales of each of the goods you stock. Therefore, if the stock taking reveals that certain goods do not get sold fast in comparison to the others, thereby tying down capital, the book keeper would advise you from the statistics, to stock more of the fast selling commodities, while you reduce or stop stocking the slow selling commodities.
- Review labour costs: With the proper record kept by a book keeper, adequate decisions can be made on the amount of money spent on labour. This is made possible by comparing the labour input to the income of your business organization. Therefore, you would be properly guided on whether your business organization is under-staffed and needs a recruitment to maximize profit or over-staffed and needs to shed some workers to maximise optimum profit.
In conclusion, hiring or employing a book keeper is of immense benefit to an employer, as proper documentation of the proceedings of business activity in your organization is very important in taking your business to the next level. It should, however, be noted that the book keeper should not be the only person in the organization who can keep the books. This is to avoid the ‘dead book keeper syndrome’ which might put a business organization in jeopardy. To find out more, check out http://bookkeeperco.com.au/bookkeeper/