As a business owner, are you becoming inundated with tasks that you should not necessarily be responsible for, such as company finances? Well you are not alone. You would be surprised how many business owners we come across that have fallen into that same trap. Nevertheless, hiring a professional will alleviate you of these financial issues. They will provide a service where your bookkeeping is meticulously managed to ensure maximum financial transparency and continual statutory compliance.
What is the Role of a Bookkeeper?
Whilst following internal and external procedures, bookkeepers are responsible for overseeing a business’s financial health. They track company transactions such as sales, purchases, payroll, collection of accounts receivable, payment of bills, and so on. From freeing up your time to injecting some knowledge and expertise into the actioning of your finances, let’s have a closer look at the ways a bookkeeper can they help you along your entrepreneurial journey.
1. Business Owner Not Bookkeeper
As a business owner your aim is most likely to scale, or at least optimise, your business and its processes. A bookkeeper will free-up your teams time as well as your own, for everyone to focus on their own role’s responsibilities. Knowing that your finances are in safe hands will reduce your stress. Furthermore, it will give you more time to focus on developing strategies for growth and maximising your exit value.
2. Leave it to the Expert
Being your own bookkeeper is an almighty challenge to tackle, especially when in the process of scaling your business. In your case it would be very time consuming and can put a strain on yourself and your business. Furthermore, if you do not attain significant financial experience this task will be considerably more time-consuming and stressful. Nevertheless, a bookkeeper has all the relevant qualifications and experience, which will minimize the likelihood for mistakes along with getting the work in hand completed in a timelier manner.
3. Don’t Run the Risk of Burnout
If you take on even more responsibility, alongside that which you already have as a business owner, you could run the risk of burning out. You are still a human; you need to create a work-life balance for yourself. An imbalance can negatively impact your productivity, the success of your business and your mental and physical health.
4. No Bias
Outsourcing a bookkeeper will prevent the possibility of emotional involvement within a business. As an external entity, they will be able to give you a clear and unbiased insight into your business’s financial health. They will then effectively be able to depict all the strengths and weaknesses for future action.
5. Outsiders P.O.V.
A professional will bring an outsider’s perspective and their expert analysis skills in order to formulate unbiased critiques of your business’s figures. They will also be able to carry out tasks that would otherwise be very time-consuming for you to execute, and will guide you to give you expert advice by illustrating the financials and offering measures for improvement
6. Complying with HMRC
When running a business and managing the books, it is very easy to get behind on payments. However, you are required to comply with HMRC standards. If payments are not accurate or submitted on time, they are entitled to dish out some hefty fines. Nevertheless, bookkeepers will keep everything in order for you. They will monitor incoming invoices and ensure all of these are paid in a timely manner. Most bookkeepers study a company’s books on a monthly basis, however if you need that additional support Square Mile provide a daily service.
7. Calming the Cashflow
Alongside getting lumped with a juicy interest charge as a result of not paying your invoices and/or bills on time, your cashflow will also sink into disarray. A bookkeeper will be able to monitor cash coming in and cash going out, then react immediately to ensure positive cashflow to keep finances at optimal level.
8. Also a Gatekeeper
To ensure your books are all kept in tip-top shape, a bookkeeper can step in to create an approval system for managing payments. A bookkeeper can prepare a schedule of payments to be made ready for a director to approve, such as paying monthly payroll and weekly pay runs for suppliers. This proves to be a great way of keeping track of all expenditure whilst ensuring happy suppliers!
9. Take Control of Your Taxes
Every company has tax requirements, and a bookkeeper will be able organise and prepare your tax filings accordingly. This is a mammoth job, however when carry out using the correct procedures it makes compiling the information easier, thus ensuring more accurate information. The quality of information has a knock-on-effect when an accountant prepares a report. An accountant will then be able to submit more accurate filings, which resonates with HMRC’s demands.
10. Reduce the Costs of Human Error
Human error is a large cause for concern when regarding your business’s finances. A professional bookkeeper will save you both time and money by using their knowledge to exercise software for automating bookkeeping. Automation will reduce the likelihood of human error compared to manual entry. All in all, making the process more efficient. This money that you save can be put towards growing your business. Also, just remember, it is better to spend a little more now instead of a lot later. At Square Mile, we have pioneered simple yet effective processes that have helped our clients get their bookkeeping in shape and keep it that way. We are dedicated to helping reduce your workload so that you have time for the things that your role requires of you. To find out more visit our website or book a callwith us.