Have you been thinking about hiring a bookkeeper for a while now? Or maybe you don’t know how professional bookkeeping could benefit you?

Bookkeeping is a task that most business owners feel they could easily tackle on their own, but as your business grows you may come to realise how complex it can be. Especially if you have little knowledge of where to begin, or what should be included in your records.

What is bookkeeping?

At its core, bookkeeping is like the trusty compass that helps your business navigate the maze of financial transactions. It’s the art of organising, classifying, and documenting all the ins and outs of your financial world. Here’s what a bookkeeper does:

Transaction Tracking: A bookkeeper meticulously records all financial transactions, whether it’s sales, expenses, or payments, ensuring that every pound is accounted for.
Invoice Management: They create, send, and track invoices to customers, keeping a close eye on incoming payments.
Expense Monitoring: Bookkeepers keep track of expenses, from office supplies to utility bills, to help you manage your business costs efficiently.
Bank Reconciliation: They ensure that your business’s bank statements match your recorded transactions, catching any discrepancies or errors.
Financial Categorisation: Bookkeepers classify transactions into appropriate categories, providing a clear breakdown of where your money is coming from and going to.
Record Maintenance: They maintain accurate financial records, making it easier to prepare financial statements and reports when needed.
Tax Preparation: Bookkeepers organise your financial data to support accurate tax filings, helping you meet your legal obligations.

Does my business need a bookkeeper?

Check out these statements, and if you answer yes to any of the following, maybe it’s time to consider getting some bookkeeping support:

You’re unsure what you should be keeping track of: Y/N

The previous tax season was stressful: Y/N

Your books are overwhelming you: Y/N

You need to save time and focus on other tasks: Y/N

You don’t know how much profit you’re earning: Y/N

Keeping your books in order can be stressful, especially as tax return deadlines grow closer. If you’re not keeping track of your expenses correctly, you could be costing yourself more by losing out on business deductions. You can save yourself the headache of dealing with your bookkeeping simply by outsourcing the task, and in turn, providing yourself with more time to focus on the aspects of running your business that you enjoy.

But my business has an accountant, why do I need a bookkeeper?

Having an accountant is valuable for strategic financial planning and tax expertise. However, a bookkeeper plays a distinct role in day-to-day financial operations. Bookkeepers handle transaction recording, invoicing, expense tracking, and reconciliations, maintaining organised and up-to-date records. A bookkeeper’s meticulous work ensures your financial data is accurate and readily available for year-end and VAT reporting, streamlining your accountants’ tasks and potentially reducing costs. While an accountant focuses on big-picture financial analysis and tax strategies, a bookkeeper ensures the financial foundation of your business remains solid, making both roles complementary and essential for your business’s financial success.

If you have any questions or would like BW Business Accountants & Advisers to assist you with any of the above, please get in touch.