22 August 2017
When you first started up your business, like millions of others, you probably enjoyed totting up numbers and seeing how you were doing; if you were turning a profit, curious when you could spend some of it. After all, that's one of the main reasons you decided to embark on this journey: to make more money than if you were employed, and so you could call the shots. Right?
Everyone has their own approach to managing their accounts. Some have an aptitude for it, and plenty don't. Some use free or paid online tools like QuickBooks, others pen and paper. As long as it all balances and HMRC is happy that's all that matters. There's a business to run. And as for the difference between a bookkeeper and an accountant, all you know is they don't come cheap, and they're more or less the same thing. Aren't they?
Accounts and bookkeeping for business owners: the lowdown
No, accountants and bookkeepers don't do the same thing. And if you paid an accountant to keep your books, which hopefully he or she would advise against, then you're right because it would turn out expensive.
When to hire an accountant
Accountants can be worth their weight in gold. Although we all get reminders about the dreaded tax return, and we've saved every slip of paper, receipts and kept records, when that time comes, it's often chaos. Especially if you're needed elsewhere; which is often the case?
Hiring an accountant periodically to manage key financial aspects, like producing profit-and-loss reports, is stress off your hands and peace of mind knowing things will be done correctly. Plus, you get great advice about things like growth potential and business loans. As for the small stuff, like sorting out piles of invoices, that's where a bookkeeper comes in useful.
Bookkeeping for business: your numbers secretary
Oddly, the fun starts to wear off when you start to do well. Managing everything inherently becomes harder when your business starts to grow. More paperwork, more staff; more responsibility. Bookkeepers are like computerised people. They can process information and file it all in the right places, which, miraculously, they can then locate without blinking whilst processing new starter payroll and paying bills.
Bookkeepers also do tasks like managing expenses, making sure everything is in order for your accountant when the time comes. What they both do is keep your business in sound financial shape, meaning you're prepared for when your empire really starts to flourish.
Business Advice Hull
There's a solution for everything nowadays. You can employ someone full or part time to be virtually or physically present, or something in between. For example, you could employ someone who comes to the office every week to physically sort through any paperwork and deal with payroll and banking matters, or you can outsource jobs per task to virtual bookkeepers and accountants. It's up to you.
Haines Watts Hull can manage key financial aspects, like producing profit-and-loss reports, is stress off your hands and peace of mind knowing things will be done correctly. Plus, you can get great advice about things like growth potential and business loans. If you would like one of our Hull accountants to assist you then please speak to us to obtain a quotation for this work.
