Expertise 

Are you someone who should feature on DIY SOS? Maybe you’re a dab hand with a drill and a paintbrush but perhaps not.

It’s common that when we work with new clients we find DIY accounting errors which need correcting (just like the wonky shelves my dad might put up). Common examples are Stripe and Paypal accounts which don’t reconcile correctly, but these are not the only examples. In our health check reviews we have found old sales invoices which need writing off and duplicate payments to suppliers, both of which result in a direct hit to profit.

Our team are all Xero certified advisors which means along with the initial training to get the shiny badge we also have to do regular update training throughout the year to maintain our expertise. Plus we are regulated by the Institute of Chartered Accountants  in England and Wales so you can be confident that you are in safe hands.

VAT compliance

You need to keep your books up to date to remain compliant with HMRC and Making Tax Digital. If you don’t stay up to date with VAT submissions HMRC can issue fines and penalties. An outsourced bookkeeper can help you to hit your deadlines and avoid issues with HMRC. It’s one less thing for you to remember.   

If you aren’t VAT registered yet you still need to keep an eye on your turnover and watch out for reaching the VAT threshold. If you wait for your accountant at the end of the year then you run the risk of accidentally breaching the VAT registration threshold without being aware.

Cost

Waiting until the year end for your accountant to look at your bank statement and shoe box of invoices and receipts will most likely cost you more than working with a bookkeeper throughout the year. Generally accountants will charge more if they have to do a lot of tidy up work before they can sort out your accounts and tax. We’ll liaise with your accountant at year end to make sure they have everything they need, making your accountant’s job smoother. 

With our Xero Tax certification we are also perfectly placed to complete your year end accounts and corporation tax. As your bookkeeper we already know your business well and can use this knowledge to prepare your accounts and tax efficiently. 

If you are VAT registered then you can reclaim the VAT on your costs. If you or your bookkeeper aren’t filing your receipts and bills regularly the chances are that some will get lost. And if they are lost you can’t reclaim the VAT, that’s cash in HMRC’s pocket and not yours.

You may be making lots of sales, but are your customers paying? With your bookkeeper providing regular reporting you can identify which customers haven’t paid yet and then take action to get the cash flowing in.

Without regular reports it’s just too easy to not notice that costs are creeping up, which often means that profit is creeping down.

Business intelligence 

One of the biggest benefits of regular bookkeeping is the added business intelligence that can come through regular reporting. Without keeping records throughout the year how do you know if you are actually making a profit?

Moving on a step further; are you making as much profit as you would like? Which areas of your business are performing best? Which areas should you invest in? Is it time to ditch some underperforming parts of the business? What is your business strategy? What are your goals? How do you know you have reached them? How do you know when you need to adjust your plan to reach those goals? 

Regular reporting should help you to check back to your plan and make the necessary tweaks to your activity that you need to boost your growth.

If you really want your business to grow and thrive then you need more than just compliant books, you need a professional who will add value through business intelligence. We love to work in partnership with our clients, helping them not just to be compliant but to thrive.

Business advisory

With a deep understanding of your business we’re in the perfect position to support and advise you. We’ve helped clients to implement new software resulting in hours of time saved each month, time our clients can invest back into running their business or in taking care of their mental health. We have helped to identify new funding opportunities resulting in additional income for clients. We’ve spotted where there is overspending and the potential to reduce costs. 

A common area of support is in cashflow forecasting and scenario planning so that clients can understand the impact of different decisions on their cash, vital information when building up your strategy.

You don’t know what you don’t know, so what you need is a trusted advisor who understands your business and can ask “hey, have you thought about X, Y and Z, it could do A, B and C for your business”.

So, why do I need a bookkeeper?

Our standard bookkeeping package is focused on the recording of transactions and reconciliation of your bank so that each month you can be confident that everything is accurate and up to date. We have clients on this package and it meets their needs.

For clients looking for more support we tailor bespoke packages which permit us to provide support in an advisory capacity acting as a trusted finance business partner. 

This started as a blog entitled “why do I need a bookkeeper”, in short: time, expertise, VAT compliance and cost. And then if you want to reap the benefits of taking it further, business intelligence and advisory.