Bookkeeping is an essential part of running a business, if you don't make managing your finances a priority, then you will regret it when it comes to filing your self assessment or End of Year accounts. Not reconciling your transactions and recording your expense receipts correctly will definitely cause you problems later on. Having a bookkeeper for just an hour or two a month works out much cheaper than having to then sort out accounts that have been left for months plus the stress messy accounting causes makes hiring a bookkeeper so important.
There are so many benefits to having a good bookkeeper:
Saving you time so you can concentrate on the day to day running of the business. Bookkeeping can be time consuming and tedious, especially for the business owner who just is not very good at figures or doesn't quite understand it all so this results in it being left to the bottom of your to-do list. Then that important self assessment date starts to creep up on you and you panic because you have to hunt down all them expense receipts, and the accounts are in a such a mess, you are unable to sort them out so your accountant has to do it which then means a huge bill. A Bookkeeper can take all this away by going into your accounts each week for about 30 mins to hour to make sure every thing is kept up-to-date for you.
Making sure your invoices are paid in a timely manner. A Bookkeeper can put a process in place that helps keep an eye on your invoices to make sure they do not go unpaid. This can include sending out reminders, making a phone call to chase up a late payment or issuing a late fee penalty. Sometimes it can be awkward for you to chase up these late payments with your own clients so having a bookkeeper do it for you takes that uncomfortableness away.
Brings your accountants bill down. With a bookkeeper looking after your accounts on a regular basis it really does bring your accounting bill down because when it comes to your End of Year or self assessment your accounts will be up-to-date and ready to be handed to your accountant. All they will need to do, would be to submit them to the HMRC which will result in a much cheaper bill for you.
Better Tax Prediction. With a Bookkeeper keeping your accounts in order, you will be able to predict the amount of taxes you will be expected to pay more accurately with detailed balance sheets over time so you do not have any nasty surprises.
Being a Bookkeeper, I have seen first hand the problems messy accounting can have on a business so if you struggle to keep your accounts in order, get a bookkeeper now before your account become out of control.
Or if you really feel you not ready to outsource regularly to a bookkeeper then why not spend an hour on Zoom with me so I can talk you through keeping your accounts in order regularly yourself with Xero Accounting. I can make sure your account is set up correctly and show you how to reconcile your accounts so they are all in order.
If you do need help with your accounts then please do get in touch www.keepingyourbooksltd.co.uk/bookkeeping
Heidi - Bookkeeper
Keeping your Books Ltd