Small Businesses have a lot of functions and responsibilities to look after. Dealing with customers, managing the quality and quantity of products-services and planning for Marketing requires a big chunk of time. Designate us the bookkeeping and financial work and save 20% of your time for other critical operations.
You may think of the effectiveness of having a Bookkeeper and affordability of the task. People usually do not comprehend the difference in nature and role of an Accountant and a Bookkeeper.
Bookkeeping obligations for Small Business
You may need to pay as much as £3000 and even face disqualification if you fail in keeping the records. So, you need to know your responsibilities.
All companies are instructed to maintain “true and fair” accounting and financial details for a minimum of 6 years, or more if the period of some transaction extends beyond a fiscal year as per the Companies Act.
Inflows and outflows of money through receipts and invoices are must-to-have. Also, assets and liabilities in the form of payables and receivables are essential to record for a company.
Investments in the form of stocks and goods available with the funds used for the purposes and minutest details in this regard are compulsory to have in a presentable way. Purchases and selling of assets are also part and parcel in this head.
What is better? Bookkeeper, Accountant or Both?
There are many speculations and confusions doing rounds about accountants and bookkeepers. People lack the basic knowhow of the roles and cost of each of the profession, some misconceptions are;
- You need not have a designated accountant if you have already hired an internal bookkeeper
- Accountants do not serve the Bookkeeping functions
- Accountants cost more for bookkeeping in comparison to the bookkeeper
- Preparing accounts and bookkeeping are two separate things.
The fact is technology has influenced a lot and have minimized the roles and functions of an accountant and a bookkeeper. Bookkeeping nowadays can be simultaneously done by accountants, and many offer both of the services in a package.
Likewise, we, as accountants are happy to serve you for both of the matters. We use smart software to address and perform bookkeeping and accounting tasks. More to that, the result is timely and accurate.
Misconceptions about Bookkeeper’s Role
The bookkeeping job is not that technical. Instead, it is maintaining financial information comprehensively and effective on a regular basis. The following the basic responsibilities of the role;
- Filing the bills of goods/services
- Keeping a record of the cash received.
- Paying the suppliers on the invoices received and keeping a record of them
- Managing payroll of the employees
- VAT records and maybe submissions as well
- Following the standard accounting principles for double entry to record information.
ProAccountax Bookkeeping Services
Many times it is commercially handful to assign the bookkeeping functions to Accountants. We are well aware of the requirements of small business and have worked on producing a reliable solution depending on your budget and nature of business.
The positives in this regards are no need for double-checking, timely work and software produces the perfect results. Also, the day-to-day records are directly updated in the statutory accounts. Our expert and professionals accountants look after the whole process to avoid errors and produce better work.
We assist the bookkeepers of the clients who prefer to have one at the office and add further bookkeeping and accounting for better financial reporting leading to productive planning. Furthermore, we also facilitate with online accounting software to the bookkeeper for expert support and consultancy once he feeds in the data.
Monthly or quarterly recording is indeed instrumental in monitoring the progress and performance of the business keeping in view the budget of the company. Moreover, you can also keep track of the debtors and maintain the suppliers’ invoices. Therefore, bookkeeping is a must-to-do for the preparation of Management Accounts.
Call us to discuss more our bookkeeping, training and other services being offered in London in reasonable charges. We strive in easing and comforting the crucial functions of business planning, benchmarking, and strategic insights, and so on.