Well yes, and no. Serving your customers, generating sales, and managing your staff are all important. But lose focus on your numbers and your business could be heading down a ravine without a paddle...
Bookkeeping is the process of recording all of your receipts, invoices and sales documents into a system (our recommendation would be Xero or Freeagent). In it’s simplest terms you can think of it as of keeping score: so you always know your sales and your profits.
But it’s a little more complex than that. You need to process items to the correct account code. You need to be able to prepare accurate VAT returns. And, if HMRC decide to pay you a visit, then you need to be able to show them every single sales invoice and stationery receipt if they ask for it. So good organisation of your records is vital.
- As experienced accountants, we know that the most successful business owners don’t do their own bookkeeping
- As experienced accountants, we know that the most successful business owners get a trained expert to take care of the bookkeeping
In the early days they find another member of their team to do it, or ask their husband (or wife) to do the books “so you can help the business”. But, if this person is not properly trained or experienced, the accounts can get into a mess. Really quickly.
This means they can focus their time on generating more sales for the business. Focus on offloading as much of the ‘grunt work’ as soon as you can. Then sit back and watch how the extra time you spend on your business development and sales can help your firm take a quantum leap.
Our bookkeeping service will normally include some or all of the following elements:
- Processing purchase ledger invoices to your accounting software
- Applying customer receipts to invoices
- Applying supplier payments to invoices
- Reconciling your bank accounts
- Recording any missing bank transactions in your accounts software
- Reconciling your credit cards
- Recording any missing credit card transactions in your accounts software
- Posting your salary and wages journals
- Posting your depreciation journals
We recommend you raise your own sales invoices. This can usually be done on a more timely basis (which speeds up cash collection). That said - we can do this for you as well - just ask.