Bookkeeping is the process of recording the daily transactions of your business, be it in a spreadsheet or on an online accounting software like Xero.
If you’re not familiar with bookkeeping, it can be very easy to make mistakes and cause lots of issues with the HMRC later down the line.
Part of running a business means you’re in charge of keeping all your records in order, and these need to be done accurately, as rubbish records going in means wrong figures out.
If bookkeeping sounds like more of a headache than you thought or is simply not your strong point, we can take care of all your record keeping freeing you up to do the things you like to do in your business.
Getting all the records in order might be one of the most mundane jobs in business, but it’s also the easy part. An accountant will make sure you’re making use of all available allowances and keep you on the right side of tax law.
It’ll always be tempting to try and keep your business finances in house and manage it yourself to keep costs as low as possible. As most discover, though, keeping all your numbers in check as your business grows and progresses gets in the way of actually running your business and hitting your targets.
It makes sense to consider getting an accountant involved early on. By putting a professional in charge of the numbers, you’re freeing yourself up to run your business how you want to run it, without the headache of bookkeeping getting in the way.
The Freedom in Numbers team are always on hand to provide support suited to your business, including advice on getting the most out of your finances.
What is bookkeeping?
Bookkeeping is the process of recording the money coming in and out, so that you can see exactly what is happening in your business.
In order for your business to be successful, it’s important to be keeping your bookkeeping records as up to date as possible, otherwise you might find that struggle with paying your bills, buying stock or simply paying your taxes.
It will help give you complete visibility over your business and guide you to making the right decisions with the right knowledge.
What is the difference between a bookkeeper and an accountant?
A bookkeeper will manage the granular data of your business (the in’s and out’s) along with chasing customers for payment, and making sure your VAT returns and payroll are filed on time, whereas accounting covers the more regular reporting of the financial accounts of your business.
They don’t need to be different people either. An accountant should have the knowledge and expertise to manage the bookkeeping for you, giving you a complete end to end process.
Why is bookkeeping important?
It may seem like a task that is way down on your list of things to do, but by ensuring your bookkeeping is up to date means you’re not going to have customers that haven’t paid you for months (bad debts), or you’ve missed paying an important bill and you have a supplier or debt agency chasing your business.
It will also help you by driving the business forward to achieve the goals you set out to achieve. If you know sales are way above target, that could mean you can get that new office sooner, or if they’re a little behind you can change tack and bring in more customers.
Bookkeeping helps you prepare for the financial year ahead and allows you to think about what your next moves are, including what cash flow looks like.
Do I need a bookkeeper and an accountant?
In most instances, absolutely not.
There is no reason that your accountant cannot provide both services, unless they don’t have the skills to do so.
Likewise, you may have a bookkeeper that is competent in processing the year end accounts too.
How much does a bookkeeping service cost?
This is a bit like the questions ‘how long is a piece of string’!
Prices vary between service and the people providing the service.
Typically there are three different methods of pricing a bookkeeping service – time based, fixed cost and transaction based.
Time based doesn’t always encourage efficiency, as the amount someone is paid goes down if they use automation to speed up the process.
Fixed cost is good for cost control, however if your business gets smaller (for instance if it’s a low season), the level of work will drop, but the price stay the same.
Transaction based flexes with your business, and if your business (and subsequently transactions) increases, then you can expect that the bookkeeping will cost you more. However if it gets smaller (and the number of transactions decreases), the cost will come down too.
Why choose us for bookkeeping support?
As a business owner, it’s important that you understand what is going on in your business, and whether all your efforts are actually making you money.
Without bookkeeping, this is next to impossible as you only have a bank balance to give you comfort, and no idea of who owes you money. You’re essentially trading blind.
At Freedom in Numbers, we’re here to support your business, and take away the stress of the administrative side of business, giving you your freedom back.
Our bespoke bookkeeping services are tailored to your business, and flex to fit the activity of your business.
We offer a monthly fixed fee service that it tailored to your business and will include all the services you’ll need to get started, including dealing with the HMRC on your behalf!
We will save you time and money.
We’re confident that you’ll love our brilliant customer service and have an excellent experience working with us.