Is it a good idea to use the same company for your bookkeeping and accounting?
At present we have a bookkeeper and accountant. The reason is mainly that I figure if one doesn't pick something up, the other will. We are looking at changing accountants and have noticed quite a few offer a Xero bookkeeping package also.
Is it a good idea to have both functions facilitated by one company? I see so many pros and cons to going down this path so thought I see what others thoughts are.
One company responsible for both aspects is OK but not same person. Separate companies and different people for each could help keep everyone fully accountable :)
I would have two different people performing the jobs. Bookkeeprs are generally cheaper too. I do all my bookkeeping and hand it over the final figures to my accountant
Like Steven, I see nothing intrinsically wrong with having one company handling both aspects; a case could easily be made for the advantages.
A client of mine does exactly that–she runs the bookkeeping business and her partner the accounting business. The businesses are separate but linked. They would claim their clients enjoy: 1. faster processing times; 2. more knowledgeable consultancy; 3. greater contribution to business growth.
For myself, I have two separate firms performing these functions. And I run Xero myself, doing basic data entry which the bookkeeper checks each quarter and prepares the BAS. The books are then handed to the accountant each EOFY.
I suspect a majority of small businesses run this way. It's cost efficient, timely and accountable.