If you run a business, managing finances can quickly become overwhelming. From keeping track of expenses to ensuring tax compliance, the responsibilities pile up. This is where a bookkeeper comes in. But what exactly do they do, and why should you hire one?
A bookkeeper’s main job is to maintain accurate financial records for a business. This includes:
- Recording Transactions: Bookkeepers track all income and expenses, ensuring every transaction is properly logged.
- Managing Invoices: They handle incoming and outgoing invoices, making sure bills are paid on time and clients are invoiced promptly.
- Bank Reconciliation: A bookkeeper ensures your bank statements match your business records, helping identify discrepancies early on.
- Payroll: They process payroll, making sure employees are paid correctly and on time, while also handling deductions like taxes and pensions.
- Tax Preparation: While a bookkeeper doesn’t necessarily file taxes, they can help prepare the necessary records and reports needed for your accountant to file your tax returns.
- Financial Reporting: They generate regular reports on the financial health of your business, helping you stay on top of cash flow, profits, and expenses.
Bookkeepers understand our ever-changing tax laws, ensuring your business complies with regulations such as VAT, Corporation Tax, and PAYE. This helps you avoid costly mistakes and penalties. Handling bookkeeping in-house can take up a lot of your time, especially when you could be focusing on growing your business. A professional bookkeeper can take care of all the paperwork, leaving you with more time to focus on what matters most. Knowing that a professional is handling your financial records gives you peace of mind. You can rest easy knowing everything is being properly managed, especially during tax season or audits.
Hiring a bookkeeper is a smart decision for any business looking to stay organised, compliant, and financially sound. From handling day-to-day transactions to preparing for tax season, their expertise can save you time, stress, and money. Whether you’re a small business owner or running a growing company, a bookkeeper can be an invaluable asset to your team. For more information about our Virtual Finance Function, including bookkeeping services, please call us at 01223 810100.