Many small businesses trade throughout the year and six months after, use their accountant to prepare the annual accounts from their historical records. In these times this is not an ideal situation particularly if trading has slowed down or cash flow is tight; businesses need to know its trading position and profitability.
An experienced Bookkeeper looks after the day to day financial running of the business from inputting data, reconciliations and VAT returns etc and provides a valuable source of information to their client, the monthly financial reports which include the Profit & Loss and Balance Sheet of the company. In addition bookkeepers can provide budgeting forecasts and cashflow forecasting to ensure that businesses can plan ahead.
Businesses, particularly limited companies need accountants who will prepare the annual accounts in statutory form, provide taxation services and consultancy services; however, it is sensible for the business to use a bookkeeper for as much work as possible as they charge far less for their time than accountants. It is also important that the bookkeeper communicates with the accountant to ensure the accounts can easily be interpreted which in the long term will save on end of year fees.
Should a company wish to borrow from the bank, they will ask for a business plan with financial reports and forecasts, therefore the business owner needs to have a good working relationship between the bookkeeper, accountant and bank manager to assist with a successful outcome.
A bookkeeper is a good investment:
- They take care of the financials so that the business can concentrate on its key skills.
- A bookkeeper will explain the monthly financials in an easy to understand format.
- A self employed bookkeeper saves you money from ERNI and holiday pay.
- Will save money on the end of year accountant’s fees.
If your business needs to get up to speed with its finances please contact me. I can work onsite or offsite whichever is convenient; naturally I will need access to your financial records, such as bank statements, cheque books, pay in books and more dependent on the complexity and nature of your business. Why wait a year when you could have monthly reporting and have less work for your accountant at the end of the year?
With 30 years experience of bookkeeping within small to medium size businesses Paul Tatt Bookkeeping Services was set up in June of this year and is well equipped to help businesses with their bookkeeping and more importantly provide the financial reports. Please visit Paul Tatt’s profile for further details and to link through to his website.
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