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Bookkeepers And Accountants Working In Harmony

Bookkeepers and accountants working in harmony? Does this happen in reality or is this pie in the sky? Many people aren’t really sure what a bookkeeper’s role is and what an accountant does. In the latest blog from team4, our aim is to clear up any confusion you may have. We look at the different roles and what each job entails and highlight some areas where the two job descriptions overlap. One thing is clear at the outset – both functions are extremely important for any business and maintaining healthy business finances is a key ingredient for success.

General descriptions of a bookkeeper and an accountant

It’s true that bookkeepers and accountants do some of the same work. In general terms, both handle financial data. A bookkeeper will record transactions and keep your financials in order maintaining day-to-day records keeping these tidy so the accountant can do their job. Alternatively an accountant is there for compliance and as a tax advisory using the bookkeepers’ figures. They will interpret, classify, analyse, report on and summarise the financial data.

The role of a bookkeeper

  • Recording and categorising financial transactions
  • Posting debits and credits
  • Compiling and sending invoices
  • Completing payroll
  • Maintaining and balancing ledgers and accounts
  • Preparing and filing VAT returns
  • Providing basic tax advice

 

The role of an accountant 

  • Preparing entries and financial statements
  • Completing income tax returns
  • Financial analysis and strategy
  • Tax strategy and planning
  • Corporate financial reporting and compliance
  • Preparation of business plans and cash flow forecasts

 

The overlapping roles of accountants and bookkeepers

The line between bookkeeping and accounting functions is slowly diminishing and with the advancement of cloud bookkeeping software such as QuickBooks, Sage and Xero, some parts of accounting are being absorbed into the bookkeeping role. The software can also generate financial statements, which were once part of the accounting process. It also means bookkeepers can add value-added services including payroll processing and management account reporting.

 How team4 works with your accountant

We believe in working together with a client’s accountant. Our aim is to ensure a close working relationship. We prefer a chat right from the outset with your accountant so that the transition is seamless and we want them to be involved in any relevant meetings, which we believe is better for you. By involving them initially, we’ll see how they want us to work. This we believe results in the perfect scenario of bookkeepers and accountants working in total harmony for the benefit of your business.

Accountant – Client – Bookkeeper

What can team4 do to help your business?

Reliable and trusted bookkeeping services are essential for a thriving business. Bookkeepers lay the groundwork for accountants providing detailed and accurate data, which is essential for the accountant to do their job. If you would like a chat with a ‘no fuss’ bookkeeping team who will cut out the jargon, why not get in touch with the experts at team4? Please call us on +44 1825 763378 for more information or email info@team4bookkeeping.co.uk

What Is An Accounts Department?

An accounts department, sometimes referred to as the finance department provides accounting services and financial support to specific businesses. It can be internal or external and is responsible for a wide range of things. These include accounts payable and receivable, inventory, managing payroll, data input and credit control. In fact, all financial aspects of your business. It’s impossible for a large business to operate efficiently and more importantly profitably without one being in place. When you set up in business, you may find that initially you do not require a whole department. However, all of the elements that an accounts department handles could be applicable in a smaller way. Our latest article looks at the definition of an accounts department and what it deals with. We also discuss why using Team 4 Solutions could be the perfect answer for small business accounting and bookkeeping.

Accounting department definition

Part of a company’s administration that is responsible for preparing the financial statements, maintaining the general ledger, paying bills, billing customers, payroll, cost accounting, financial analysis, and more. The head of the accounting department often has the title of controller.

Accounting Coach

Accounting and Bookkeeping – the section of a company that deals with the accounts.

The Free Dictionary

The department in a company or organisation that prepares its financial information.

Cambridge Dictionary

What does an accounts department deal with?

  • Accounts Payable and Accounts Receivable
  • Payroll – to include bonuses, benefits, sick leave and time off
  • Credit Control – to include cash flow and use of accounting software
  • Reporting and Financial Statements
  • Taxation and VAT
  • Expenses

 

Accounts Payable and Accounts Receivable

Accounts Payable (AP) are payments to outside partners for goods or services whereas Accounts receivable track monies coming into your business for goods and services from clients and customers. This is key to calculate the profit or loss your company is making and should trigger opportunities to improve on the situation. It is often referred to as ‘balancing the books’.

Payroll

This will ensure your employees are paid accurately and on time. It will include commissions, bonuses and benefits that are due to them. Another key function is recording employees’ time off from work, holidays and sick pay. Our recent article about using a payroll specialist will give a lot more information on this topic.

Credit Control

Monies coming in are essential for a healthy cash flow, but getting your customers and clients to pay on time is a challenge. Nobody really likes asking for money so you need an accounts department that will set up a smooth credit control process. This means that someone else will be chasing those outstanding invoices. Systematic records must be kept of your company’s financial transactions and here accounting software is used which could include QuickBooks, Xero, Sage or other customised systems.

Reporting and Financial Statements

Financial information is collected in order to prepare accurate financial statements and reports. This allows companies to make more informed business decisions, forecasts and prepare budgets. It also determines profit and loss. Your accounts department will prepare end of year financial statements and reports to include balance sheet, income statement and cash flow.

Taxation and VAT

If you have a large company, you will need a taxation department. All decisions made by your business will have tax implications which will need to be identified and incorporated into financial planning and decision-making processes. Funds need to be available to pay HMRC at the right time. Evasion of tax is illegal and there are tough penalties so you will need your tax department to make sure laws are complied with. Legal compliance is key so that your business stays compliant with relevant financial laws. You’ll also need to register your business with HMRC is your VAT taxable turnover is more than £85,000. You will be responsible for charging the right amount of VAT, paying VAT due to HMRC, submitting returns and keeping VAT records and a VAT account.

Expenses

Your business will have various running costs and some of these can be deducted from your taxable profit as long as they are allowable expenses. These include office, travel and clothing expenses, costs of business premises and advertising, marketing and training courses. However, this is a complicated issue and next month, our blog will be all about this topic and will include capital allowances which is when you buy something you keep to use in your business such as equipment, machinery or business vehicles.

How can Team 4 Solutions help you with your accounting?

Keeping up with your business accounts and bookkeeping on a daily basis is time consuming and challenging. However, by doing this, it will ensure total transparency in all financial transactions. For smaller businesses, it would not be feasible to have a department and it may not warrant a full time member of staff. That’s where outsourcing your accounts can be invaluable and cost effective. You may just need someone to work on your accounts for a half day a week or longer and using the outsourced option of Team 4 Solutions will allow you to have that flexibility. We are here to set up the accounting systems to meet your unique requirements and provide a support service for your small business acting as your data importer and credit controller. We’ll also work seamlessly with your accountants. For more information, contact us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk

How To Choose Accounting Software For Your Business

Managing and maintaining finances is key to any business. This is true for start-ups, small companies, growing and established businesses and freelancers. In fact businesses of all sizes will benefit from using accounting software. The best method of managing and controlling the financial situation of your company is via this method. However, choosing the most suitable option for your business isn’t always straightforward and can be challenging. There is a lot out there to choose from including QuickBooks, Sage, Xero, as well as bespoke systems, not to mention the apps that link with them. Accounting software varies in size, capabilities, integrations, features, usability and pricing. In our latest article, team4 looks at how you choose the best accounting software for your business.

Prioritise the tasks you want the software to do

Getting the right package will help you to reduce human errors in your accounts as well as giving you an insight into how your business is performing. Sales forecasts can be generated and all the information you need about the financial state of your business including what part is profitable and what isn’t. You will need to look carefully at your business to assess its accounting needs. What tasks do you want it to perform? These can range from invoicing, paying bills, payroll, bank reconciliation, inventory tracking, time tracking and more.

How to choose your accounting software

First of all, you will need to be relatively literate in terms of financial accounting as without this ability, you won’t be able to ascertain the needs of your business. There are several ways to do this including reading books, taking training courses, doing your own research on the Internet and of course talking with team4.

Don’t forget to talk to your bookkeeper

  • Assess your own ability
  • Analyse your business – financial needs
  • Prioritise your requirements and the features you need
  • Type of business you operate – some software is better suited to particular professions
  • Understand the hardware involved
  • Know your budget
  • Reach out to similar businesses – what are they using?
  • Talk to your bookkeeper or accountant

 

Determine your business objectives

 By clearly defining how you will use the software and the functions required, you will be able to evaluate the packages and identify what will work for your business. So make sure you determine your business objectives. Also who is going to use it –multiple users or just one person? It’s a good idea to involve employees and your bookkeeper or accountant.

Answer the following questions about accounting software

  • Can the software handle all of your bookkeeping tasks ranging from invoicing, receipts, banking, VAT, tax, stock control and payroll?
  • Do you have any special needs – international trade, more than one business?
  • Will it integrate with ecommerce solutions?
  • Can it automatically convert to other currencies?
  • Does it deliver a high level of compliance?
  • Will it back-up all your data?
  • How easy is it to use?

 

How can Team 4 Solutions help you choose accounting software for your business?

Today, technology is moving forwards at breakneck speed and none more so than in software. team4 is here to help you choose the right package for your business. The developers of the various accounting software packages claim that their programmes are simple and straightforward to use. For some people, that may be the case, but if you’re not that tech savvy, it might not be quite so simple. We’re here to help you get started so that your accounting software has all the functionality that you need and we offer training as well. In fact, we don’t like using the term, ‘best accounting software’, as we prefer to think of it as ‘best accounting software for your business’. It could ultimately decide if your business is profitable or not. Call us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk

 

A Guide To Self Employed Expenses

When you work for yourself, the last thing you want to do is to pay more tax than is necessary. The things you can claim for are termed allowable expenses and these can then be deducted from your turnover to work out how much tax you need to pay. Sounds simple enough? However, it’s not quite so straightforward and it can be complicated knowing what you can claim for and what you can’t. Here at team4 Solutions, we know that people often get it wrong if left to their own devices and try to claim for all sorts of things that are not tax deductible expenses and are not strictly related to their business. This article is a brief guide to self-employed expenses, which will help ensure you pay the right amount of tax as a sole trader – but not a penny more! So if you are interested in any tax-saving opportunities as a self employed person, read on as we shed light on some of the main business expenses you can claim for with HMRC.

Why is it important to know the expenses you can claim against?

It doesn’t matter whether you’ve been self-employed for just twelve months or longer; all sole traders are entitled to claim for allowances and expenditure relating to their business. If you are self-employed, claiming as much tax relief as possible is important for several reasons. Firstly, you could be incurring business costs and not claiming them for tax deduction. Secondly, claiming all your costs ensures that you are following HMRC guidance and they really want you to pay the exact amount. Thirdly, you will also be able to evaluate the true profit you are making from your business.

In this article, we look at the following in more detail:

 

Work Clothing

If you wear clothing to perform your job exclusively, irrespective of whether it is branded or not, you can claim the purchase of it as an expense as well as its maintenance by washing.

Travel Expenses

a) Vehicle allowances

Actual costs are allowable expenses for vehicles, but only permitted for the business elements of fuel, parking, repairs, servicing, breakdown cover and insurance.

Crucially, travel between home and work is not covered or any speeding or parking fines incurred and any non-business driving costs.

b) Mileage allowances

If you do not want to claim the actual expenses of buying and running a vehicle in your business, you can use the simplified method, which is to claim business mileage. You are able to claim forty-five pence per mile for the first ten thousand business miles. Anything over this figure will be claimed at a rate of twenty-five pence per mile.

c) Train, air and taxi costs, hotels and meals

You can also claim business expenses for any other business-related travel costs, such as train, air or taxi fares for business purposes, hotel rooms, for example following an industry seminar or conference and meals during overnight business trips.

Buying or leasing a car or van for exclusive work use

a) Purchasing a car or a van

If you buy a car or a van through your business, it will be listed as a fixed asset to your company, a form of plant and machinery. As such, you will be able to claim capital allowances on the value of your purchase, reducing your taxable profit.

b) Leasing a car or a van

If you choose to lease a car rather than buy one as a self-employed person, you can opt for one of three lease options:

  • Hire Purchase
  • Finance Lease
  • Operating Lease

Each of these methods comes with its own set of rules, so it is well worth speaking to an expert before you commit. You will want to go for the best option for your business.

Tools and machinery required to carry out your work

If your profession as a self-employed person relies on tools and/or machinery, it is possible to claim back tax on replacing and maintaining your essential equipment. You are also entitled to claim relief when you first purchase the item either through a capital allowance or as an allowable expense.

Training

Training costs relating to your trade are also tax deductible.

How team4 can help you claim your expenses correctly

This is designed as a brief guide, as all businesses are unique with differing circumstances. Tailored advice to your specific business is suggested. It is certainly in your interests to claim business expenses, but they must have been incurred wholly and exclusively for the purpose of running your business. If you are at all unsure, please get in touch with team4 on +44(0)1825 763378 or email info@team4bookkeeping.co.uk

All You Need To Know About CIS

The Construction Industry Scheme (CIS) is applicable to businesses involved in construction, both contractors and subcontractors. Other businesses are also affected that are not part of the construction industry but spend large amounts of money on constructions work. Special rules are outlined in the scheme for paying tax and making national insurance contributions. In this article, team4 examines what CIS is, the obligations for contractors and subcontractors and the work that CIS covers. We also cover the domestic VAT reverse charge, which came into effect on 1 March 2021 and include useful links to more information from the government.

What is The Construction Industry Scheme (CIS)?

The Construction Industry Scheme (CIS) is a scheme used by HMRC to collect tax from subcontractors who work in the construction industry. As a contractor or subcontractor you need to be aware of your obligations. In essence, it is a scheme similar to PAYE whereby a contractor withholds 20-30% (more about that later) of the payment to a subcontractor and pays this to HMRC. The payments act as advance payments towards the subcontractor’s tax and National Insurance (NI) contributions. The scheme is aimed at reducing tax evasion and fraud as well as helping subcontractors to spread their tax liabilities over the year.

What are the obligations for contractors?

As a contractor, you must register for the scheme if you pay subcontractors to do construction work or you have spent more than £3m on construction in the past twelve months, even though your company does not do construction work. It is important to register before you take on your first subcontractor. You will need to check with HMRC if a subcontractor is registered with CIS as this determines how much you hold back.

  • Include all deductions on a monthly return to HMRC
  • Deduct 20% for CIS registered subcontractors
  • Deduct 30% for non registered CIS subcontractors
  • Keep accurate records to avoid penalties

What are the requirements for subcontractors?

You will have to register with CIS if you are self-employed, own a limited company, are a partner in a partnership trust. You will then have to deduct 20% from your payments from contractors and pay HMRC. This is a way of paying advance tax so that you do not have to make a large payment at the end of the tax year.

  • You may be due a rebate if your profit is lower than expected after allowable expenses
  • You can apply for gross payment status if you do not want your contractor to make deductions

It is important to note that you must register as both if you fall under both categories.

Work covered by CIS

CIS covers most construction work to a permanent or temporary building or structure and civil engineering work including roads and bridges.

For the purpose of CIS, construction work includes:

  • Preparation of the site including foundations and providing access works
  • Demolition and dismantling
  • Building work
  • Alterations, repairs and decorating
  • Installation systems for heating, lighting, power, water and ventilation
  • Cleaning the inside of buildings after construction work

There are a number of exceptions, which can be found by clicking here. The complete guide as issued by the government can be found here.

Domestic Reverse Charge VAT

On 1 March 2021, there was an update to CIS, which requires VAT-registered contractors to apply the domestic VAT reverse charge on qualifying services supplied by VAT-registered subcontractors. This had been due to start in October 2019 but has been delayed due to Brexit and the pandemic. Again this has been established as an anti-fraud measure to stop companies receiving high net amounts of VAT from customers, which then doesn’t get paid to HMRC. Here the customers charge themselves the VAT, rather than the supplier, meaning it is the customer’s responsibility. The reverse charge only applies between the two VAT registered businesses within CIS and so does not affect invoices to the general public. Invoices relating to Reverse Charge VAT need to be entered on the invoice date or the date the payment is received, whichever is earlier.

How can team4 help you with CIS?

CIS is not straightforward. It is therefore important to work with a bookkeeping company that thoroughly understands the intricacies. This will help to minimise the effects on your cash flow. Penalties are quite heavy for filing late returns and start at £100 for being a day late to £300 or 5% of the CIS deductions on the return, whichever is the higher if you are 12 months late. It’s also worth noting that you could get a fine of £3,000 if you give the wrong employment status for a subcontractor on your monthly return. If you need help with CIS, call the experts at team4 as we work with a lot of businesses involved in the construction industry. Call us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk

Are Bookkeepers Entrepreneurs?

Is it really possible to be a bookkeeper and an entrepreneur at the same time? Bookkeepers are generally considered to be super nice people. It’s also a profession that women predominantly do, sometimes as a part time role, often working from home. It also tends to be associated with drinking lots of tea and coffee. Not much wrong with that! But can bookkeepers be classed as entrepreneurs or associated with entrepreneurship? In order to answer the question, it’s necessary to define the word and the concept and look at the characteristics individually?

What Is an entrepreneur? 

Investopedia: An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Key Differences: An entrepreneur is someone who locates the need of society and tries to meet the same, with their innovative idea. A creative idea is conceived and all the necessary steps are taken to convert the idea into reality. This would include putting up the capital, the workplace, labour and all the essential resources to produce the product, whilst bearing all the risks so as to gain profits in the future. Entrepreneurship refers to the process of establishing a business entity, intending to get profit, as a future return.

The following apply to a freelance bookkeeper:

  • Taking a risk by setting up a company
  • Seeing and seizing a new opportunity
  • Taking advantage of technology
  • Understanding the mechanics of running a business
  • Having ambition, motivation and enthusiasm
  • Desire to develop a business
  • Thinks differently – searching for new ways of doing things
  • Necessity to be agile and adaptable

So are bookkeepers entrepreneurs?

Could it be said that ‘number crunchers’ are not naturally inclined towards being risk takers? But by establishing a company, you are surely taking a risk? You are certainly addressing the needs of society and making your vision a reality. Becoming a bookkeeper certainly fulfils entrepreneurship by establishing a business entity, intending to get profit, as a return in the future. Where it might fall down is in the creativity and innovative element, but anyone who deals with numbers knows that you have to be very creative at times!

No two entrepreneurs are the same!

However, if you put a selection of so called entrepreneurs into a room together, they would certainly have lots of things in common including being resilient, agile, tenacious and passionate, all of which apply to bookkeepers. (They would also undoubtedly have traits that were quite dissimilar.) Bookkeeping is a fast moving profession and therefore involves being agile, adaptable and determined. Perhaps you could say that where entrepreneurs differ is in the personal risk, the size of their vision and goal. And if bookkeepers are not entrepreneurs, they are certainly a valuable business asset, a sounding board and at times a shoulder to cry on. It’s true that bookkeepers are closer to their clients than almost any other business professional.

What does team4 think?

So it’s yes and no! But definitely more yes than no. In many respects we feel bookkeepers are entrepreneurs. We would love to hear what you think. However, entrepreneur or not, one thing is clear, we would love to encourage more young people to see bookkeeping as a profession and as a destination, not a stepping stone to becoming an accountant. It’s a career that can take you anywhere if you have ambition and is a lot more versatile than accountancy. By working as a bookkeeper with other business owners you will learn so much about how to run a business and how not to, and bookkeeping can take you anywhere. All you need is the vision.

Why Use A Payroll Specialist?

Payroll can be complicated and time consuming irrespective of whether you have a small or large number of employees. And over the last 12 months there have been other complications thrown into the mix including furlough payments and Brexit. However, getting payroll right is crucial for the success of your business. It involves making sure your employees get paid the correct amount and on time and you must ensure you are not breaking any laws as penalties from HMRC can be quite severe. In the latest article from team4 with offices in East Sussex and West Sussex, we look at payroll in more detail. We discuss the options you have, what’s involved with payroll and the benefits of outsourcing to a dedicated payroll specialist.

Options available for payroll

You have 3 options for operating PAYE. The first is to do it manually yourself. However this can be risky and will take a lot of your time. You must also be absolutely confident that you will do it correctly. Secondly, you could hire an accountant although this could be an expensive way of doing it and you will need to discuss the services they offer. The third option is using a payroll specialist and this could be the best option, as they will accurately pay your employees with minimal chance of errors.

Choosing a dedicated Payroll Bureau to take control of your payroll has lots of advantages

If you choose this option, most payroll companies or bookkeepers that have a dedicated Payroll Bureau will interview you to discuss your specific requirements. Their aim is to streamline your payroll process and minimise your PAYE liability. They will also register your payroll with HMRC and deal with all the forms involved.

  • Employee and employer National Insurance (NI) contributions
  • Statutory Sick Pay (SSP)
  • Statutory Maternity and Paternity Pay
  • Childcare vouchers and student loan deductions
  • Payment administration including P14s, P35s, P60s and P11Ds and all year-end forms
  • Transition to RTI (Real Time Information)

Benefits of outsourcing your payroll

Your payroll will be taken over by a payroll specialist to give you complete peace of mind.

  • Tax obligations and payroll responsibilities will be carried out accurately and on time
  • Stay up to date with the latest regulations and required paperwork
  • Tailormade solutions to suit your business
  • Smooth transition from your current system
  • You can be involved as much or as little as you would like
  • Ensure compliance with the latest regulations including auto-enrolment pension requirements
  • Reduce the need for training in-house payroll staff
  • Free up your precious time

Changes to Payroll in 2021

There are many changes that have been announced for payroll in 2021 including new rates of National Minimum Wage (NMW) and the National Living Wage (NLW). For the first time NLW will be extended to 23 and 24 year olds. Statutory Allowances are going up as well as Statutory Sick Pay. If you do need any clarification, or any help processing those furlough payments, please get in touch with team4.

How can team4 help your business?

team4 has its own Payroll Bureau with payroll specialists on hand to take control of your payroll. Many of our clients have 50+ employees and some accounts well over 100. Payroll is just part of the service we offer and our aim is to provide a seamless link working as part of your team. We think it’s important that you know just how much it’s going to cost you if we do your payroll. That’s why we have a simple pricing structure with a fixed fee for you every month and no hidden costs. If you would like team4 to quote you on your payroll, call us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk

Importance Of Bookkeeping For A Growing Business

The importance of bookkeeping for a growing business can never be overstated. As your business expands, you’ll probably find that you are too busy to look after your business financial accounts. It’s certainly a great feeling of achievement to watch your business expand and it’s super news for you. But it is at this stage that problems can start to occur with the company accounts particularly if you didn’t get a bookkeeper in at the beginning of your journey. You’ll soon realise that your business is now too big to be handled by you, particularly if you have limited accounting experience. In this article from team4 with offices in East Sussex and West Sussex, we look at why you should call in a bookkeeper at the first signs you are beginning to struggle. We also examine the challenges you will face and why outsourcing your accounts makes a lot of sense.

Focus your energy on growing your business and not on doing the financial accounts

You are passionate about your business and desperate that it succeeds. Keeping those books in order will become ever more time consuming, distracting and quite frankly frustrating. You definitely will be thinking you could be doing something much more important and beneficial to the development of your business. As your business takes off, your energy needs to be used to focus on developing your new ideas and making the best business decisions. Time to hire a qualified bookkeeper.

 

Bookkeeping challenges of a growing business

  • Cash flow – are you on top of your expenses?
  • Financial reports – do you know how your business is performing?
  • Payroll management – which system should you implement and what tax codes should you be using?
  • VAT – do you need to register and what scheme is best for you?
  • Tax liabilities – are you setting aside enough for HMRC?
  • Measuring profitability and KPIs – have you considered indirect costs?

By using a bookkeeper, you will have a dedicated person to look after your business. This will help your business to grow further and they will optimise the systems you are using. In many respects bookkeepers are vital, as they will put systems in place for your business growth from a financial perspective. This will become evermore important as you take on staff and build your workforce. They will also liaise with your accountant, as this is probably something you don’t want to do.

Outsourcing your bookkeeping

If you find you are becoming time poor, it’s time to outsource your bookkeeping. By doing this, you will be acquiring the specialist skills you need without having to employ anyone. By outsourcing you will only pay for the work that’s done and you won’t have to worry about that person leaving your business or doing things inaccurately. It’s worth noting that it may take a qualified and certified bookkeeper half an hour or so to do financial tasks that would take you all day. This ultimately might be the deciding factor about whether to outsource – a simple cost comparison between how long it would take you and the costs associated with taking on a specialist. Four to five hours away from your business every week could be a high price to pay.

Answering the following will demonstrate the importance of bookkeeping for a growing business

  • Can you afford the time it takes to do your own books?
  • Will you meet your legal obligations?
  • Could you miss out on tax deductions you were unaware of?
  • Will you notice when your business should be paying VAT?
  • Are you confident you are using the best accounting software for your business?
  • Do you really know the ins and outs of allowable business expenses?

How team4 can help a growing business with its business accounts

This blog will have highlighted the importance of bookkeeping for a growing business. If you took on the task of dealing with your financial accounts in the early days, you will have learned a lot about your business and it will help you to save every penny to grow your company. However, if you now find you have no time to keep on top of the paperwork, and there is a lot, and you are far too busy to manage the books on a regular basis, it’s time to get in touch with team4. With us, you’ll know exactly what’s coming into and going out of your bank account and you’ll know if you are on track to making a profit. Call us on +44 1825 763378 for more information or email info@team4bookkeeping.co.uk so that we can make sure your books are under control and your business can continue to expand. The importance of bookkeeping cannot be overstated.

Bookkeeping For Start-ups – Get It Right From The Start

Bookkeeping for start-ups – we can already hear what you are thinking – it’s an area that you don’t have to bother about initially! We do understand that with a new business, there seems to be a lot going out and not a lot coming in. It therefore makes sense to you not to pay for something you think you can do yourself. If you do feel confident that you can do your own bookkeeping and you will have the time to do it, then you will be off to a flying start. However, if you don’t get your financials in order right from the outset, it could create a serious muddle that will cost a lot to put right. And worse, in the long run, it might even cost you your business!

Making the right financial decisions is key to the success of your start-up business

Starting your own business is exciting and can be extremely rewarding. But there are many things you need to consider. Lots of planning is involved, including creating a business plan, financial decisions will need to be made, market research will have to be carried out and you may think you have to acquire knowledge in areas that you don’t know much about. And that’s all before you are open for business.

Set realistic goals for your start-up business

It is imperative to set realistic goals and expectations. Patience is the name of the game as slow and steady will see you reaping the rewards further down the line. Here at team4, we unfortunately have seen many start-ups come to an abrupt halt, that means going out of business when they need not have done if they had paid more attention to those financial decisions in the first place and got their bookkeeping in order. In our latest article, we want to demonstrate to you what will happen if you don’t hire a bookkeeper for your start-up, why it’s so important to get your business accounts right from the get go and how we can help.

What will happen if you don’t hire a bookkeeper for your start-up?

  • You won’t use software
  • Or if you do, you may choose software that isn’t the best fit for your type of business
  • Bookkeeping is busy work and you just won’t have the time to do it every day
  • Insufficient knowledge will cause you to set up as a sole trader when you should be a limited company or vice versa
  • And you won’t know what constitutes a personal or business expense, so expenses are categorised incorrectly
  • You will have no idea about your cash flow and will let it stagnate
  • If your electronic systems fail, you won’t have a back up
  • You will mix up personal and business bank accounts

But that’s not all…do you want to be checking your business accounts everyday?

What most start-up businesses do is actually nothing and poor record keeping at best. Receipts, invoices, statements and other financial stuff piles up. It’s amazing how quickly it gets out of control and you’ll keep saying, “I’ll sort it out tomorrow or at the weekend”. If you do a little bit everyday, you’ll always stay in control – however, that’s tough and who really wants to do bookkeeping every day!

Why you should hire a bookkeeper for your start up

  • Your time would be better spent on strategy, marketing and other key areas of your new business
  • It will allow you to have a work-life balance
  • Freedom from the tedious financial aspects of your business (which strangely bookkeepers love)
  • Peace of mind that everything is paid on time
  • Guaranteed correct and on time tax filings
  • Stay on top of your cash flow
  • Saving you money due to the reduced risk of errors, delayed accounts receivable and basically lack of knowledge
  • You won’t be involved in things that you don’t really know about

All in all, unless you are a bookkeeper, you will need a bookkeeper! Allocate your time to grow your company, not the books!

How team4 can help your start-up business get off to a flying start

We actually feel that as bookkeepers looking after your business accounting affairs, we are there to hold your hand, in the figurative sense. It is important to get the financials right from the start and we’ll offer training including the right software to use and provide initial help. And it will not only save you a lot of money but also stress and anxiety and give you the peace of mind that your company is in good financial hands. You’ll find it’s much cheaper to set up your books correctly than paying a fortune later on to sort them out. If you have a start-up business and want to talk to a friendly bookkeeping company, call team4 on +44(0)1825 763378 or email info@team4bookkeeping.co.uk