When you’re just starting out running your own business it’s likely that you’ll be doing some of the bookkeeping. However, as time goes by and your company grows it’s worth considering offloading some of the responsibility to a qualified expert, giving you more time to focus on your business and ensuring that your numbers always add up.
Here’s our guide to what every small business needs to know about bookkeeping.
What is Bookkeeping?
Bookkeeping involves tracking and recording all the financial transactions a business makes. A bookkeeper will create reports to show how the business is doing which can aid decision making. They can also help with other tasks such as invoicing, paying bills, preparing tax returns, monitoring key performance indicators, and providing expert advice.
If you’re running a small business there may be some tasks which you want to do yourself. However, it’s good to bear in mind which are possible to do on your own and the tasks for which you should really enlist the help of an expert. Some small businesses look after the following tasks themselves:
It’s fairly straightforward to use software to extract date from banks and look at copies of receipts, so although time consuming, this has become a much smaller job than in the past.
A lot of business owners take charge of bank reconciliation. While still not necessarily a favourite job or one that perhaps is the best use of your time compared with growing your business, there are now many apps which allow you to do this on a mobile device which makes it easier.
If you know what you’re doing and have good templates and processes preparing and sending invoices is fairly straightforward. However, if you feel uncomfortable chasing overdue invoices you can always outsource this to a professional bookkeeper.
If your business only has a handful of suppliers and a small cashflow paying the bills can be straightforward. However, having a professional on hand can really help if cash flow starts to become an issue and you need some advice.
If your business is small with only a few employees you may be able to keep your payroll in house if you have the time and resources, otherwise it makes sense to outsource this to an expert to avoid any potential errors occurring.
The following are jobs which are considered challenging for non-specialists at Bookkeeping and are important to outsource to experts to avoid any potentially costly errors.
Bookkeepers have a keen eye for detail and can thoroughly inspect your ledger for any typos or wrong entries and make sure your books are perfectly balance and in order – giving you priceless peace of mind.
This is when you want to have an expert in charge. Creating profit and loss reports and balance sheets requires 100% accuracy as these determine your taxes and help inform major business decisions.
Employing an expert to file your tax returns not only saves you time, it makes sure you get them in on time and avoid any costly fines. Bookkeepers are also experts at finding ways to lower your tax bill so you may even save money in the long run.
When you’re rapidly expanding payroll can get complicated really quickly so having an expert available makes it easier to deal with new starters and leavers and work different types of pay such as maternity and sick pay leaving you with satisfied employees and more time to spend on your business.
Why hire a Bookkeeping service
If you’re serious about growing your small business, the importance of investing in a good bookkeeping can’t be underestimated. London based BNA Consulting offers direct services for all your bookkeeping needs. They offer a highly flexible, scalable service so whether you need someone full-time or part time we can take care of your books for you. They have both Russian and English speaking bookkeepers and offer flexible commitments from a daily or monthly rate to a more ongoing commitment.
The experts at BNA can help interpret complex financial reports for you, and tell you what they mean for your business. They can also help you troubleshoot problems as well as plan for the future. With BNA Consulting you know you’re getting the best for your business.