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Financial paperwork and records are tedious tasks that may take up to 20% of the total work time. This is a hefty amount of time for an average small business that otherwise could be spent on more productive work. For instance, this time can be spent on marketing, service or product development or customer-facing matters.

The best solution that comes into mind to save such valuable time is to hire a bookkeeper. But the question is, can your small business afford the expenses of an in-house bookkeeper? Moreover, do you need an accountant or a bookkeeper or both?

Small Business Bookkeeping Obligations

In the UK, incomplete or unfinished records may result either in the form of disqualification as a Company Director or a fine of up to £3000.

As demanded by the Companies Act, every company must keep its accounting and financial record “true and fair”. Companies are bound to maintain the records for at least 6 years and this period may extend depending on the situation. For example, if your company has bought something like machinery or equipment that is going to last more than 6 years, you are bound to keep its record. The same goes for a transaction that covers more than one year’s financial period.

You must keep all the invoices and receipts detailing all the money that the company has received or sent. In addition, you also have to keep details of the debts that the company owed or owes as well as all the owned assets. Also, you have to keep the details of all the goods sold or bought throughout the financial year.

Moreover, details of your owned stock and the stocktaking’s used to work this out have to be available at the end of the financial year. Your company should also keep a log of whom you sold and bought to unless you are running a retail business.

Accountant or Bookkeeper or Both?

There is a lot of misunderstanding and confusion about the terms accountant and bookkeeping as well as their cost and perceived roles. Here are a few common confusions and misunderstandings:

  • A belief that preparing accounts is different from bookkeeping
  • That an accountant does not do bookkeeping
  • That as compared to a bookkeeper, an accountant will cost more for bookkeeping
  • That there is no need of an accountant if you have an internal bookkeeper

The technological advancements have eliminated a lot of differences that were previously present in terms of using an accountant or bookkeeper. This in turn has lower the bookkeeping costs as many accountants now record the day to day transactions as well.

These Days, many accountants, such as we, use excellent software and work on fixed-fee packages. This is something that is helpful for small businesses as they can save money from separating out the accounting tasks from bookkeeping. Plus, the companies don’t have to use different suppliers for accounting ad bookkeeping tasks.

Confusion about Bookkeepers’ Role

Although there is nothing complex about the bookkeeping, many fail to understand the role of a bookkeeper. A bookkeeper records the daily financial information and keeps comprehensive records of all the finances and expenses. Bookkeepers usually undertake the following tasks:

  • Utilize double-entry principles to record information
  • Keep VAT records as well as VAT submissions
  • Employee payroll
  • Record invoices received from paying suppliers and suppliers
  • Keep a record of received money transactions
  • Responsible for billing of services and goods

Mint Accountax Bookkeeping Services

Accountants usually oversee and prepare the formal accounts and reports but, in some cases, using them for bookkeeping makes perfect sense. We understand why small businesses have such demands and that’s why we offer solutions that fit all types of businesses regardless of their budgets.

The major benefit of bookkeeping is improved efficiency as you don’t have to double-check the work. Our bookkeeping services or support feeds your statutory accounts process as our qualified and expert Accountants in London office monitor all the financial data.

You can directly input or feed your data into our online account software portal. As soon as you enter the data, our accounts team will evaluate it and can offer you live support and advice. In case you like the idea of in-house bookkeeping, we can come together with your bookkeeper to offer our support and services. Our expert accounting team can offer additional accounting and bookkeeping services to improve your financial reports and planning.

Bookkeeping is an essential tool that we strongly recommend for small businesses. This is a key prerequisite which you should use on a monthly or quarterly basis to manage your accounts. Good bookkeeping can help you monitor your business performance and progress. Moreover, it can improve your ability to track suppliers’ invoices and to chase trade debtors.

Speak to us to avail of our full-scale bookkeeping services in London. You can hire us from a number of services from bespoke business planning, bench-marking, strategic insights to many other value-added services.

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