Like many business owners, you probably went into business for yourself because you either a) have a passion for what you do, b) wanted to make more money than if working for someone else or c) wanted a better work life balance. You have probably discovered that there is more to running a successful business than just doing the thing you love. Not every task is going to be what you want to or should be doing and unless you chose to be a bookkeeper or accountant, it’s also likely that numbers are not your thing.
However, keeping on top of your bookkeeping is one of the most important things you can do for your business. Tracking what comes in and what goes out of your business means you are in a much better position to work out what is working and what isn’t, plus very importantly, where you might need to make some changes.
An accountant is only as good as the information provided, if there are gaps in your numbers, how can they make accurate recommendations or give you complete advice?
Yes, there are lots of software providers to try and make things easier for business owners but good bookkeeping is much more than putting numbers in boxes. Do you know if or how much VAT to claim on your Jaffa Cakes for the staff meeting or your steel toe cap boots? Do you know what nominal code you should be using for meeting room hire?
Getting these things wrong can impact the finances of your business. As a successful business owner, you need to understand your business’ true cost of sales and the fixed costs so you can measure profitability of your business properly.
So, why should you use a bookkeeper?
Well, everyone has their own reason for going in to business for themselves but nobody goes into business to run it badly. You likely chose something you could do well and thought you were good at. Your business will do best while you focus your time and effort doing the things you are good at and passionate about, so allow yourself time for the actual business side of things.
Having a professional bookkeeper means you don’t have to spend your time working out what nominal code to use or what VAT amount should apply. It means you have someone who knows these things, doing all of the bookkeeping for you. Having the bookkeeping expertly done ensures your access to regular and accurate reports, so that you can meet tax deadlines, avoid penalties and eliminate stress. Sound bookkeeping makes it is easier for you to make informed decisions about your business with the provision of accurate and up- to-date information, allowing you to maximise the potential of your business.
Can’t afford a bookkeeper?
As a small business owner, you may be thinking that you can’t afford to hire a bookkeeper, that taking someone on means holiday pay, sick pay and an hourly rate / salary.
Let’s put it another way, how long are you spending on your bookkeeping and what is that time worth to you?
How many hours are you spending in your working day/week/month sorting your books? How much do you charge an hour? What else could you be doing that can probably make money for your business?
Maybe you are doing the bookkeeping in the evening or at weekends? Are you getting the work/life balance that you planned on? Are you spending your free time doing things you wish you didn’t need to? What really is the value of that time to you? It’s probably worth more than what it would cost to outsource to a good bookkeeper.
Then we need to consider the benefit of using a professional; you are a professional at what you do and can work efficiently, well, it’s the same for bookkeeping. A professional bookkeeper will likely take a shorter amount of time to get through the same work, meaning their time is more cost effective. I know it would take me a lot longer than James to build the wall in my back garden next week, that’s why (well, one of the reasons why) I am paying him to do it.
The benefit of outsourcing
Anyway, back to bookkeeping. Having a professional bookkeeper doesn’t mean you need to hire someone on fixed hours for every week of the year. Outsourcing your bookkeeping is a very effective and efficient option. An outsourced bookkeeper will work closely with your accountant and liaise directly with them if you wish. They will also be able to work on the bookkeeping and accounting software either you or your accountant prefer to use, meaning less work and effort on your part.
An outsourced bookkeeper will usually work remotely so you don’t have to provide equipment or office/desk space, so no upfront overheads will be required and you just pay for the work you get.
At Rosemary bookkeeping we work with our clients and accountants to provide a service that best fits their needs. Rosemary Bookkeeping provide regular reports so our clients and their accountants can see what is going on financially within a business when they need to. Rosemary Bookkeeping focus on the bookkeeping, leaving the accounting to the accountants and running the business to the business owner. With clear and transparent pricing Rosemary Bookkeeping clients always know they are paying only for the work completed.
If you’ve realised that doing the bookkeeping yourself isn’t for you then get in touch with your local Rosemary bookkeeper today to ask how they can help.