Bookkeeping is the most basic foundation of accounting. This is a record of every business transaction. Embedding good record keeping into your daily running processes will help you maintain good records and efficiency and will help keep you compliant. You should be keeping a record of all documents that you have received, or copies of those which you have prepared. These records will be from the accounting period or tax year to which they relate, or sometimes soon afterwards.
What Makes Good Bookkeeping so Essential?
You want to have well-organised, reliable and up-to-date record keeping. There are sound reasons for this. Bookkeeping is the pulse of the business. You want it to be clear to read and completely reliable. This is necessary for your cash flow but furthermore these figures provide the data which informs crucial business decisions at every level. You really can’t underestimate the power and efficiency of good bookkeeping.
Bookkeeper Versus Accountant
Bookkeeping refers to the day-to-day transactions of a business. A bookkeeper is different from an accountant. Your bookkeeper is responsible for entering the data into your accounting software. Other bookkeeping duties may be invoicing, bill paying and entering and categorising expenses. An accountant is a trained professional. They take responsibility for more in depth account analysis and have the expertise to offer financial guidance and business advice. As an owner of a small business it can be tricky keeping up with all of your responsibilities in a measured and sustainable way. Beyond your great ideas there is paperwork, legal responsibilities, marketing, operations and hiring staff and you want to get it all just right. Striking this balance can be a challenge, especially in the early days. It might surprise you to know that one of the most supportive partners you can have on your team will be your accountant, or accounting and tax planning firm.
Depending on the size and scope of your business you may want to hire a full time bookkeeper. Or this may be a role that falls within the capacity of one member of your existing team. The essential quality is that you are confident they will enter your financial data accurately and reliably. Small businesses and start-ups may not find it affordable to hire a dedicated bookkeeper. However, if you think you could be performing better without the extra responsibility of day to day recordkeeping, Prestige Business Management may be able to take the headache away. Our flexible bookkeeping service lets you decide how much of your bookkeeping you want to handover, or prefer to retain in house. Our partner Dext provides one easy to use place to record your expenses as you go. It’s simple to email, upload or take a speedy snap on your phone to load each receipt and we will process them for you.
Your business will require an accountant to some extent over the course of the financial year. This may be to take on the entirety of your accounting including bookkeeping or simply signing off your annual accounts for you. Choosing the right accounting services will depend on the scale and ability of your staff and the time and budget you have available. Prestige Business Management can help you fulfil any number of professional goals working together. Efficient tax planning is essential for your profitability. Corporation tax is based on the annual profits of a business. All profits are tax liable. However some expenses can be deducted and there are tax allowances you can use to help reduce the amount of tax you owe. Corporation tax applies to trading profits, investments and selling assets. Qualifying assets could be land, property, shares or equipment. This is known as capital gains tax.
Understand Your Accounting Needs
Cash flow management can be time-consuming and difficult to fit into the daily running of your business, however it’s an essential component of your business development strategy. That’s why we have developed easy to use reporting and forecasting tools. We can extrapolate and present to you just the data you need to inform your strategy and help make good business decisions. We will help you achieve your best and feel supported, in safe hands. When you hire an accountant, find out how much they will help you organise a portfolio of services that will serve you best, beyond static package deals. This could include staff payroll, your tax return, cash flow and tax planning or a blend of these services. Prestige Business Management can guide you through the tax return process and provide automated accounts in a format of your choice, depending on how you like to work. We even provide full training to all our clients on how to use the best business management platforms like QuickBooks.
Prestige Business Management Works For You
At Prestige Business Management our bookkeeping service will regularly notify you of due payments and fulfil your VAT obligations. We can track how much profit you are generating to help you plan your business activities. We can help you fulfil any number of professional goals by working together. Find out what we can do for you. Call us today on 0203 773 2927.