So, I get asked a lot by, friends and family what I do for a living, when I tell them that I work in the Marketing and New Business department of a Bookkeeping and Management Accounts Company, the inevitable next question is “Is there a difference between Bookkeepers and Accountants?” Then I normally get asked why do companies need a bookkeeper? Don’t most businesses do the bookkeeping themselves and get their Accountant to check it over for them?” My answer to this is “Would you prefer to waste your valuable time by doing the bookkeeping yourself, or waste valuable money getting your Accountant to do the bookkeeping for you?” Generally Outsourcing your bookkeeping to a company like Great Elm Bookkeepers, will not only save you money, but it will free up your time so you can get on with what you do best and what you are passionate about – developing YOUR business!
One of the key aspects of any successful organisation is proper maintenance of bookkeeping & your accounting system, be it online in the cloud, or still through Excel spreadsheets – yes there are still businesses that do their bookkeeping via spreadsheets! However, the sooner you realise the importance of online bookkeeping services for your company, the less of a Headache you will have at a later stage in your business. If, like most business owners I know, Bookkeeping and record keeping isn’t your strong point, then you will start to neglect it, and that will have a long-term adverse effect on your business as well. Shall I show you how?
How it will adversely affect your business: You may be making lots of sales and have various transactions through your business day in & day out. Therefore, if you fail to keep accurate & systematic records of these transactions, you will inevitably miss the collection part. No invoice, no collection, no follow-up and lastly, no profit! If you don’t keep track of who owes you money or who you owe money to, and you have no idea of your company cash flow, then sooner or later your business will fail!
Fulfil regulatory compliance: Certain regulatory bodies like HMRC, PAYE & Income tax, etc. provides for compulsory systematic books of accounts for recording purpose. They will even impose the heavy penalty for non-compliance with the same.
Free from audit pain: Regulatory bodies have prescribed certain norms for statutory audit on a yearly basis. To save your time and money on internal and external audits, it is important that you maintain proper systematic records, whether it be through Excel Spreadsheets or Online Accounting Software such as Xero & QuickBooks.
Missing out the tax concessions: Unorganized bookkeeping may mean the overlooking of any legitimate tax concessions or exemptions within your company. Therefore, if during your tax assessment, your Income Tax returns are not supported with the necessary ledger accounts or other records, the Income Tax department within HMRC may well disallow those tax deductions.
Avoid the last-minute rush: Often a business has to do a mad dash when struggling to get everything in order and ready for the year-end filing for their Income Tax return. More often than not this is because of inadequate and unorganized bookkeeping throughout the year. Business owners juggle their documents, records and financial data at the last minute trying to find all the paperwork to back up the ledgers. You can be spared all of this worry and stress saving yourself the entire headache! How? I hear you ask?? Start recording your business financial transactions right now! It’s that simple 😊
Know the future of your business: If you are not maintaining and entering proper records and statements throughout the month, how will you know whether your company is in Profit or Loss and making you money? If you monitor your income and expenditure statements, profit and loss account weekly, this will help you understand your business better and enable you to make better business decisions before it’s too late!
Finding the right company to outsource your Bookkeeping to, may be a tiresome and time-consuming process, but once you understand the importance of knowing your numbers and managing them through the bookkeeping company that is the right fit for your business, you will wonder why you didn’t do it sooner!!
For Further Bookkeeping or Management Accounts Assistance feel free To Get In Touch With Us – who knows, It may be the best decision you’ve made so far! 😉