What Is Bookkeeping
Bookkeeping is the process of recording and organising the financial transactions of a company. Best done day to day, accurate bookkeeping allows business owners to keep their fingers on the heartbeat of their business.
Bookkeeping also provides all the information that an account will need at the end of a tax period in order to calculate a tax return. Every single financial transaction that a business makes needs to be recorded. Purchases or sales all need to be tracked and reported.
Who Needs Bookkeeping
Every business needs to do some form of bookkeeping. Some businesses or sole traders will have a small burden when it comes to keeping their records. Other, usually larger companies will have quite literally hundreds of records to keep every day.
With the average UK small business spending 30% of working hours doing their bookkeeping it's safe to say that record keeping is a large task for any business owner.
Bookkeeping is the ongoing process of accurately keeping records. Below is a small list of different tasks that a bookkeeper might undertake.
Making and tracking expense payments to suppliers
Handling loan payments and interest
Chasing payments from customers
Monitoring and calculating asset depreciation.
Financial reporting duties
Why Does Bookkeeping Matter?
It may be obvious to point out but keeping accurate financial records really is crucial for any business. Without this information at hand and keep in mind business owners are operating in the dark.
While straightforward for a small business, bookkeeping quickly spirals into a complex system of tracking every single penny of your business, often overwhelming new business owners.
We Can Help
When a new business grows too big for one person to handle the workload, bookkeepers are often the first hire a new company makes. Some companies hire an in house bookkeeper or start with a part-time freelancer. As firms grow they tend to outsource bookkeeping and accounting duties to companies like us.
With years of experience and the latest software, bookkeeping is our bread and butter. If your business has reached that exciting point when it's time to hire a bookkeeper, give us a call and see how we can help.