A common question we hear is “why should I pay for a bookkeeper when I can do the bookkeeping myself, for free?” This is especially true of start-ups. There are many reasons from compliance to actually saving yourself money. Using a bookkeeper can offer several significant advantages:
Expertise and Accuracy
Professional knowledge - bookkeepers are trained* and experienced in managing financial records. They stay updated with the latest accounting standards, tax laws, and compliance requirements, ensuring your books are accurate and compliant.
Error Reduction - professionals can minimise errors that might occur if you handle bookkeeping yourself, which can save you from costly mistakes.
*You may not be aware that a bookkeeper does not have to be qualified to work on your accounts so always check your bookkeepers qualifications and if they are insured to work as a bookkeeper. We know all too well that unqualified bookkeepers can cause a lot of problems, some of our clients have used cheaper services and we have had to clean up the mess! More on unqualified bookkeepers, click: here.
Time-Saving
Focus on Core Business - bookkeeping can be time-consuming. By outsourcing it, you free up valuable time to focus on growing your business, improving your products or services, and serving your customers.
Efficiency - bookkeepers can complete tasks more quickly and efficiently due to their expertise and experience.
Financial Insights and Planning
Informed Decisions - professional bookkeepers provide accurate and timely financial reports, as well as having a wealth of business knowledge, helping you make informed business decisions.
Cash Flow Management
They can help manage your cash flow more effectively, ensuring you have the funds available when needed and can plan for any big purchases or tax bills.
Stress Reduction
Peace of Mind - knowing that a professional is handling your financial records can reduce stress and give you peace of mind.
Avoiding Penalties - proper bookkeeping helps avoid penalties from late or incorrect tax filings, as bookkeepers ensure compliance with HMRC regulations.
Scalability
Growing Business - as your business grows, bookkeeping becomes more complex and time-consuming. A bookkeeper can scale their services to meet your needs without you having to invest in additional training or resources.
Cost-Effectiveness
Value for Money - while hiring a bookkeeper is an additional expense, it can be cost-effective in the long run. The accuracy, efficiency, and insights they provide can lead to better financial management and cost savings.
Avoid Overheads - instead of hiring a full-time in-house bookkeeper, outsourcing allows you to pay for only the services you need.
Access to Technology
Advanced Tools - bookkeepers often use the latest bookkeeping software and tools*, which can improve accuracy and efficiency. They can also help you integrate these tools into your business processes.
* If you follow us on social media, you will see the team often attending events such as the Xerocon, The Institute of Certified Bookkeepers: Bookkeepers Summit, Accountex, the Festival of Accounting and Bookkeeping (FAB) and The Digital Accountancy Show (DAS). The advantages of attending these are endless and enhance our service to you. Professional development, new software and tools available, new techniques and customised solutions to name but a few. See more on this in our blog, click here.
Compliance and Audit Preparedness
Regulatory Compliance - bookkeepers ensure that all your financial records comply with current laws and regulations, reducing the risk of audits and fines.
Inspection Support - in the event of an audit, having professionally maintained records can make the process smoother and less stressful.
While you might be capable of handling your bookkeeping, the expertise, time savings, and additional benefits provided by a bookkeeper can significantly outweigh the costs, allowing you to focus on what you do best running and growing your business.