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Pros/Cons of Rabbit Method
Pros/Cons of Rabbit Method
The benefit of using a 'Rabbit' bookkeeping is that you do not need to hear about the mess and something that you do not like for a long time. If your BAS is done every quarter, you might not hear from your bookkeeper for a quarter. You must not like bookkeeping, which is the reason why you pay for them to do it for you. It is definately a benefit that you do not even think about the bookkeeping for a quarter as an example.
However, this usually means that your bookkeeper is not working on your case for a long time, although there are some exceptions. Your accounting system may not be updated for a quarter, resulting in outdated figures for the entire three months. As a result, you only have a vague idea of how many bills are waiting to be paid and how many invoices remain unpaid for the quarter. When asked about a payment made three months ago, you have no idea what it was for, and the receipt or invoice is buried deep in a box of documents. With hundreds of receipts in the box, it would take hours to search and find out the purpose of the payment.
Wasn't the whole point of hiring a bookkeeper to avoid going through this hassle?
Pros/Cons of the Tortoise Method
Pros/Cons of the Tortoise Method
One problem with using the 'Tortoise' bookkeeping method is that you may frequently hear from your bookkeeper. Your inbox might be filled with numerous emails from your bookkeeper, which can be overwhelming if you feel stressed by a high number of emails.
However, each email may address smaller issues, and they are timely - this is definitely a benefit of using the 'Tortoise' method, in my opinion. When bookkeepers ask, "Do you know what this payment was for?" the payment was made just a few days ago. You still remember where you were and what you spent your money on, and your receipts are still in your wallet, not lost or disintegrated. Even if you need to search for an invoice sent to your email address, you only have to look through a few to find the one you need. The figures in the accounting system are nearly always up-to-date. Therefore, you can discuss unpaid invoices when you have a meeting with your customer next time.
Which Costs More?
Which Costs More?
Ultimately, the decision on which bookkeeper (with which method) to choose will be based on cost - which saves you more money. In our opinion, the cost of bookkeeping is nearly the same regardless of the method. The difference lies in when the job is done. In the end, the same amount of work is done, costing nearly the same.
The difference lies in the price you pay for your own time. If you are seeking a bookkeeper, chances are you own a business, and your skills and time are the most valuable assets for your business. In our opinion, the 'Rabbit' method wastes more of your time than the 'Tortoise' method with unnecessary investigations and searching. If you could have utilized that time for more productive tasks for your business, it might be performing much better. Therefore, we believe the 'Rabbit' method ultimately costs more.
However, we also understand that some business owners may not have the resources or time to opt for the 'Rabbit' method. Ultimately, the choice is yours. At MK Book, we can accommodate both methods depending on your preference. Nonetheless, we will strive to minimize any inconvenience within the existing limitations and preferences.
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