5 tips to help you take control of your bookkeeping
Created: January 2015
Providers of bookkeeping services in London and the South East confirm that entrepreneurs starting a new business for the first time nearly all adopt the same attitude to bookkeeping in those vital early days.
The conventional wisdom seems to be that they choose a DIY approach to this vital task and assume that a one-off investment in an off-the-shelf software package is the only expenditure that they need to allocate in their budget.
The same specialists in bookkeeping services in London also report that they are invariably called on eventually to rescue situations where the Do It Yourself approach has quickly come unstuck. Either a backlog builds up and/or too many records are either inadequate or inaccurate. So here are 5 top tips to ensure that you stay in total control of your bookkeeping:
1. Get a professional to advise on and help set up your accounting software
Even if you insist on taking the DIY route, at least to start with, it costs very little to consult experts in bookkeeping services to advise you on the best software to use, how to set it up and how to use it. Then, when your business has expanded to the point where you have no option but to outsource the entire function to specialists in bookkeeping services in London, everything is more likely to be in apple pie order and not in need of expensive re-work.
2. Get an expert to explain what each bookkeeping function is all about
All too often it seems, budding entrepreneurs convince themselves and other people into thinking they know all about basic accounting when it is quite clear that they don’t. Any serious minded person going into business on their own account needs to know exactly how double entry bookkeeping works and the purpose behind such vital exercises as bank reconciliations. There are plenty of providers of bookkeeping services in London who are only too happy to explain the basics to novices and to illustrate how timely reconciliations can prevent a backlog of uncorrected errors and spot any instances of fraud very early on.
3. Make the most of your time
You will hear many people say that they don’t take time off work to carry out DIY tasks at home such as painting and wallpapering and the reason most of them give is that, set against what it costs to have a professional do the job, they could be making at least that concentrating on their own business. In other words, as specialists in bookkeeping services in London point out, the DIY route is usually a false economy since outsourcing quality bookkeeping services in London and the South East are much more cost effective than you might imagine.
4. Keep onside of the taxman
As those experienced in bookkeeping services in London will testify, one of the most common failings of start-up businesses is the inability of entrepreneurs to prepare accurate tax returns on time. Ultimately, there is no escape from your tax obligations so it’s best to get off on the right foot with HMRC from day one. Of course, everyone starts off with the best intentions but, once a new business starts to move up through the gears, it’s not long before certain items have to take their place in the queue.
Professionals working in bookkeeping services report that neglect of tax matters subsequently snowballs out of control. It’s much safer and usually cheaper in the long run to have a third party handle your tax returns and ensure that you put enough aside to meet tax bills as they fall due.
5. Ally your bookkeeping costs to your revenue base
Every business aspires to keeping costs under control and allied as closely as possible to revenue. One of the great advantages of outsourcing bookkeeping services is that the amount of work provided and charged for closely mirrors the fortunes of your business. Consequently, the cost only rises as your business expands.
If you feel that you might like to discuss the possibility of using a well-established provider of bookkeeping services in London, please contact us:
Navin Thaker, Partner
T 020 7874 7958