Getting to know you – your bookkeeper’s secret weapon
Posted on 16th June 2021
Whatever type of business you run you will have money coming in and going out. If you don’t keep track of your income and expenditure you could run out of money to pay your bills or even yourself.
If the receipts for all your business expenses are in a carrier bag or shoebox, you could be missing opportunities to reduce your tax liabilities.
Your bookkeeper’s secret weapon
One of the big advantages of working with a professional bookkeeper is that they will get to know you and your business very quickly. They will look into every corner and will soon recognise patterns in your transactions, so they will spot anything out of the ordinary.
Your bookkeeper will make sure all your purchases, sales, payments, and receipts are properly and accurately recorded. They can monitor and reconcile your bank account and will see any unexpected transactions that don’t match your invoices or receipts.
This could be something very simple that you already know about but if you left the query until the end of your financial year there’s a good chance you would have forgotten about it.
Simply spotting one unpaid invoice that you have overlooked could pay all your bookkeeping fees for the year.
Getting things right from the start
If you are starting a new business, you might be tempted to look after all your bookkeeping to reduce your costs. However, many new business owners find that, while they are working hard to generate income, their expenditure can be pushed down the priority list.
If you work with a good bookkeeper from the beginning you will have reliable systems and processes in place that will make things much easier for you.
If you spend just a little time explaining what you want to achieve and how you want your business to run, you are sure to receive some good advice based on their experience and financial good practices.
Saving valuable time
Your bookkeeper will do much more than process your business payments and expenses. They will set up account codes for all your regular transactions and you will immediately see when bills are due or customers are late paying your invoices.
If you need to use cash in your business, your bookkeeper can set up a system to make sure it’s all properly recorded. It will be one less headache for you when everything balances at the end of the day or week. That’s much better than a jam jar on the shelf.
Your bookkeeper will probably recommend that you use accounting software in the cloud, like Xero, which can automatically record receipts you have photographed with your smartphone using an app like Dext (which was called Receipt Bank), so you won’t need carrier bags or shoe boxes anymore.
Once your records are set up digitally you will be able to check anything about your business finances from anywhere and at any time. If you have any questions your bookkeeper will be able to see exactly the same information.
Controlling your finances
Professional bookkeepers are trained in the best ways to record and manage your business accounts. Because they deal with them every day they will understand your finances as well as, if not better, than you do.
When they see regular expenses leaving your account, they can check how much value they are adding to your business and suggest alternatives. They can also give you advice about what you can and can’t claim as a business expense, such as using part of your home as an office, for example.
Completing your tax returns
You must submit year-end accounts to HMRC and Annual Accounts to Companies House on time or you will face penalties. Your bookkeeper can do this quickly and easily on your behalf because all the information is already recorded and any queries have been dealt with. They can then let you know how much you will need to pay for your Corporation Tax.
They can also complete and submit your self-assessment tax return and make sure that you claim correctly for your expenses and pay tax on any benefits in kind you receive. You won’t have to spend Boxing Day looking for old receipts anymore.
If you are registered for VAT, your bookkeeper will also make sure your submissions are made on time and in the right format and keep track of how much you need to pay.
We like to become part of our clients’ teams rather than being seen as a supplier.
If you would like to know how our secret weapon could work for your business please get in touch.
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