Both an accountant and a bookkeeper have valuable roles to play in your business and generally you need both and not one or the other.
A very simple explanation of their roles is that a bookkeeper will record the day to day financial transactions of your business, whilst an accountant will use the information a bookkeeper records to produce annual statutory accounts or self assessment tax return.
Of course both professionals can do far more than this to help your business.
A bookkeeper will deal with the nitty gritty of your business – chasing up your customers for payment, paying your suppliers, filing your paperwork, doing your VAT returns and just keeping everything running smoothly. They will be able to prepare financial management information from the day to day records which will help you make business decisions and will be able to prepare a cashflow forecast to enable you to plan future income and spending.
Accountants offer bookkeeping services but will they take care of all this for you? Accountants have valuable skills, knowledge and experience but so do bookkeepers. Each have different but complimentary skills. We need each other and business owners need both. A bookkeeper will not and should not give you tax advice because they are not qualified to do so but an accountant is. An accountant will not manage your cashflow or make payments to your suppliers, remind you which customers haven’t paid you or tell you that you forgot to pay your PAYE last month.
There is a place for both professionals in your business. Think of the value each of them can bring. A bookkeeper will release you from the time consuming paperwork pile and an accountant will keep you informed about changes which will be advantageous (or maybe not) to your business. Not only this but you can take advantage of their knowledge and experience with other businesses and learn so much which will help your own.
You may think the cost is prohibitive for your business but turn it around and think how much you can gain.
We provide bookkeeping, VAT, payroll and auto enrolment services which will exceed your expectations. Contact us to see how we can help you.