Photo Credit: Unsplash | Jessica Lewis
In a simple answer; yes it does.
When most people hear the term bookkeeper the first image that jumps to mind is some old styled librarian pondering over a book and feeling that their accountant handles all aspects required. This is not accurate on both counts.
First off, bookkeeping is not about book collecting, it is the service of keeping your transactional records such as invoices to clients or vendor payments made. A bookkeeper collects, organises and records the financial information in chronological order. At your financial year end, a bookkeeper hands over all information to the accountant.
Whilst your accountant is dealing with your company’s analysing of financial transactions as well as preparing tax returns for you, the bookkeeper service works alongside them to ensure your business has financial strength year on year.
So why do you require one?
When your business reaches a certain size, you are going to need a lot of tasks handled by a professional with finances. These include:
- Accurately recording invoices received and sent out.
- Reconciling bank statements and posting transactions.
- Payment to suppliers.
- Chasing past due invoices.
- Ensuring staff are paid correctly and on time.
- VAT/PAYE/PRSI calculations paid to HMRC within time guidelines.
…As well as many others. If you currently do these areas alone you know the time and preparation it takes and the time you lose from focus on your business. This is why a bookkeeper service is of prime importance for your business growth and giving a smooth course of action leading to submission of your year end accounts.
Self-assessment can be a taxing exercise (no pun intended), and not filing your tax return on time is punishable by law and could even result in prison sentences.
Without that sounding too scary a prospect, this is the perfect reason to appoint a professional bookkeeper when starting a business or when your business is starting to grow out of the comfort zone.
Having bookkeeping services explains the process and gives you a better understanding of how to manage your finances better and more accurately saves you time and, more importantly, money. With a disciplined structure in place, you can really start to feel your company grow and be healthy moving forward.
For bookkeeping Manchester, contact Pebbles Bookkeeping and HR today.