That pile of receipts and invoices is getting bigger AND you haven’t updated your cash flow spreadsheet in 2 months! You know roughly where you are financially with your business but how do you get a clearer, accurate and more up-to-date picture? Most SME’s live and die by their cash flow so employing effective bookkeeping and accountants is invaluable to the overall growth and stability of your business. What is the difference between a bookkeeper and an accountant and which one is the right one for you?
Accountant vs Bookkeeper
An accountant will generally look at your ‘books’ on a quarterly basis and advise on VAT, Corporation Tax owed and other such legal requirements for your business. As well as classifying, reporting and summarising financial data. A bookkeeper will work on day-by-day basis recording financial transactions chronologically and advise on any cashflow problems or late payment invoices and in some cases, can help with classification and financial reporting.
Most business will really need both services, but often they only engage an accountant largely because they feel they can handle the day to day activity themselves but also to help reduce costs. But is this a sensible decision?
Business owners are so busy running their business, that the task of recording of financial transactions and performing a reconciliation get left to the end of the quarter when the VAT return is due. That also means that for much of the time their view of their company’s finances is several weeks out of date. Some business owners get so behind that their accountant is brought into clear the backlog and this can be a significant expense as it’s not the core business of an accountant to handle this type of work.
At Designated Bookkeeping, we would strongly recommend that all business owners employ a highly trained bookkeeper as soon as they are able to afford to do so. A good bookkeeper brings two distinct advantages: –
- Relieves the pressure on the business owner to manage the day to day finances freeing him/ her up to grow their business
- Ensures financial control with accurate up to date data.
For more information on our bookkeeping services please visit: designatedbookkeeping.com/ or call us on 02079521460.