As part of Global Bookkeeping Week, we look in to the often misunderstood role of a bookkeeper.
What Is A Bookkeeper?
Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. We are always taking the pulse of a business, we often act as an extension to the business and encourage our clients to include us in development of their strategies. We work closely with our clients on how to grow their business, how the decisions and technology will impact the bookkeeping and provide advice on how best to integrate the ideas with bookkeeping.
We have seen a big rise in eCommerce with our clients, we have consulted with them to ensure the technology is the best fit, cost effective and that it integrates with the bookkeeping software.
What Do We Do?
This depends on the client and what their responsibilities are. A snapshot of what we do includes:
- Process purchase invoices and receipts to the correct chart of account, ensuring that the purchase is a valid business purchase (to avoid penalties from HMRC at a later date)
- Raise sales invoices
- Chase relevant paperwork in good time for deadlines such as VAT returns
- Advise clients where cost savings can be made
- Advise clients on tax savings
- Implement time saving processes
- Liase with HMRC
- Provide real time financial reports allowing businesses or individuals to make critical decisions on their future
- Work together to implement technology to benefit the business or individual
- Depreciation records
- Assets and inventory management
- Petty cash management
- Supplier payment information
- Payroll processing
- Furlough claim calculations
- Tax returns
- Advise when thresholds are going to be met and action needs to be taken
We also provide invaluable pointers, for example:
- You can buy uniforms through the business but only claim the VAT back if the uniform has your business information on it
- Your business can pay for your glasses IF they are only prescribed for computer use and they are left at your business premises and not used for any other reason
And that brings us to the complicated VAT rules such as the gingerbread person – no VAT is charged if the figure has chocolate decorations for eyes but any other chocolate decoration make the gingerbread figure VATable! More on this in our blog on VAT by clicking here.
Why pay A Bookeeper If I Can Do It Myself?
Whilst a lot of businesses do try and do their own bookkeeping to keep the costs down, It is very easy to lose control of the bookkeeping when doing it yourself. Receipts and invoices build up, customers don’t pay or the amount they pay does not match the invoice and timely investigations are needed.
Deadlines can be forgotten, new regulations can be missed, this not only means you are unable to see your current financial situation but also it means you are taken away from your business to work though the books. Failure to understand and comply with the rules could result in hefty penalties. Something that appeared to be saving money turns out to cost a business more in penalties and time to undo problems. A recent example is the double glazing company fined over £58,00 for failing to operate PAYE correctly and inaccurate staff records – read more on this story by clicking here.
So you can see, we can not only save you time by working on your books, we can save you penalties from HMRC as well!