Whatever the size of your business, there is no question your time is best spent focusing on growing and development, not worrying about working on your books. Even a small business can record thousands of financial transactions every year therefore accurate bookkeeping saves tax, and it often ties in with VAT filing and client invoicing and, by having your accountant and bookkeeper under one roof, communication problems and conflicting computer systems are never an issue.
Good bookkeeping helps you stay on the right side of HMRC and can be done as frequently or infrequently as required, and all bookkeeping work ties in with your year end company accounts which saves costs in the long run and ensures your accounting records are accurate, coherent and reflective of your business.
Accounting is evolving with a focus on cloud software, allowing your accounting records to be securely accessed wherever you are, and we can recommend the most suitable software package for your business. We undertake regular training and are accredited in various software packages including Xero, QuickBooks and Sage.
Do I need a bookkeeper as well as an accountant?
A bookkeeper’s main job is to record financial data, ensuring that entries are correct on a regular basis (often daily) and keeping a log of all transactions in the day books or computer software, recording of income and expenses, administration of purchase invoices and sales invoices and making bank transactions.
Accountants concentrate on maintaining and auditing accounts and preparing reports on the assets, liabilities, etc. of a business or individual’s tax affairs, always ensuring compliance of HMRC and UK law. Companies House require that annual accounts are submitted by a qualified accountant.
A good business utilises the services of both a bookkeeper and accountant due to their different areas of expertise.
Can I just do the bookkeeping myself?
Nothing is stopping you maintaining your own business records, however, accounts and bookkeeping can often be very time consuming and complex if you encounter a VAT issue or tax problem. You want to be generating new business instead of the majority of your time taken up with ensuring your invoices and accounting records are tidy – it can quickly become a burden. With a multitude of responsibilities to run a business day-to-day it’s all too easy to forget a VAT return or miss a payment deadline, incurring significant penalties and unwanted attention from HMRC.
LR Connections provides expert independent financial advice, accountancy and estate planning services
