Bookkeepers are the recorders of the business, maintaining accurate records of all financial comings and goings from which management and accountants can make strategic decisions.
Bookkeeping is very important to understand your business and to maintain normal business function. You must keep accurate records of your business income and expenses for the purposes of your tax return to HMRC, and good bookkeeping will make this process easier.
Are bookkeepers accountants?
Not quite. Bookkeeping is the first stage in the accounting process and focuses on recording and organising accurate data, while accounting is the interpretation of that data. Good bookkeeping is often the first line of defence in ensuring good financial reporting and a clear understanding of a business.
What exactly does a bookkeeper do?
While the specific duties of a bookkeeper can vary from business to business, typical duties common to most roles can include:
. Maintaining a ledger and data entry
. Producing and reconciling invoices
. Completing VAT returns
. Helping to prepare annual accounts
Does your business need a bookkeeper?
You may need a bookkeeper if you are spending too much time trying to record your accounts, if you do not feel confident doing these functions yourself, or if your business affairs are very complex.
What are the advantages of using a bookkeeper?
Bookkeepers can use their experience and skills to organise your financial data. This will save you time. It could also potentially save money as you will not need as much time from an accountant who may be more expensive and could be overkill for the size and complexity of your business affairs.
How can you find a bookkeeper?
If you are looking for bookkeepers Hereford, it may be more advisable to employ one depending on the size of your business, or some accountancy and bookkeeping firms such as https://office-support.co.uk/bookkeeping/ offer an external bookkeeping service that may be more suitable.
The final word
Maintaining good financial records in your business is important and investing in a professional bookkeeping service may pay off later as it could save you time, money and stress.