I have an accountant so why do I need a bookkeeper?
Your accountant advises you on tax matters and helps you file your returns. Your bookkeeper enters and classifies your transactions, ensuring that your financial statements are up to date, and therefore, accurately reflects the state of your business. This in turn will be helpful to you in making business decisions, and helpful to your accountant at year end. Tax advice by your accountant is a very different function to bookkeeping.
In some cases your accountant could well be your bookkeeper. This may not be best use of your resources as their fees for bookkeeping services differ greatly to that of a bookkeeper.
A well-presented set of books makes your accountant’s life much easier, allowing them to focus on the tax aspects of your business and saves you money as a result.
Let your accountant do what they do best, and let us manage your books.
Why do I need a bookkeeper ?
Many new business owners decide that they can do their bookkeeping themselves. There are many accounting software packages available today, so they can deal with it themselves. Nothing could be further from the truth.
Bookkeeping is a technical skill that cannot be learned just by using accounting software. Yes, you may end up balancing the debits and credits, but did you post it to the correct account? Accuracy and attention to detail is crucial.
A bookkeeper will not only account for every transaction correctly, but will also keep track of:
- your sales transactions – so you will know exactly how much you are making
- account for all those odd receipts that you have sitting in the drawer
- VAT returns – so your tax returns can be accurately filed and submitted on time
- your expenses – so you will know how much you are spending and on what
- allow you to concentrate on your business safe in the knowledge that your accounting needs are in the hands of committed, trained experts
Many small business owners attempt to do their own bookkeeping, and end up with:
- large accountancy fees to clean up their books
- severe penalties and interest charges from the government for incorrect and/or late tax returns
- run the risk of undergoing government tax audits for filing incorrect returns
Therefore, they end up paying more than they would if they had chosen to hire a bookkeeper in the first place.
While it is still important for you to hire an accountant in readiness for your year end, in order to prepare your taxes and review your bookkeeping for the year, a bookkeeper is an absolute necessity for your day-to-day bookkeeping needs.
Rather than thinking ‘can I afford to hire a bookkeeper?’ you should be saying to yourself, ‘I can’t afford NOT to hire a bookkeeper!’