Category: Bookkeeping

Why Is It Important To Thank Clients And Staff At Christmas?


How do you thank clients and staff at Christmas? If you are in quandary as to whether it’s all worth it, our latest article should help. It’s certainly not long to go, but there is still time to send clients and your team a Christmas message or gift. It’s a great time to thank customers and remind them of your brand. Your team has also been working really hard throughout the year, so it’s the perfect time to reward them with something special, so they feel appreciated. In the latest article from team4, bookkeepers based in East Sussex with worldwide clients, we look at why you should thank clients and staff at Christmas, the things you can do, what defines a business gift according to HMRC and whether these things are tax and VAT deductible.

 

Why should you thank clients at Christmas?

 

• Creates a positive association with your brand
• Increases customer loyalty
• Helps to build better relationships
• Leaves a special and lasting impression
• Promotes good will
• Keeps your brand in customer’s minds
• Highlights your appreciation and gratitude
• Gives an opportunity for an extra promotion
• Provides a way of reconnecting with clients

Why should you thank staff at Christmas?

 

• Appreciation of their hard work throughout the year
• Boosts morale for the coming year
• Promotes employee loyalty
• Acts as a reminder of the positive environment they are working in
• Makes employees feel valued
• Improves productivity
• Emphasises they are part of a warm and caring team
• Increases results and motivation

 

How to thank clients and staff at Christmas

 

• Send a thank you message in the form of a Christmas card
• Send a gift for Christmas – thoughtful branded gift
• Take them out for a festive lunch
• Invite them to a special event
• Post about them on social media

 

For customers, you could implement a loyalty programme, possibly discounts on repeat subscriptions, and rewards that accumulate with the more they purchase.

Thanking your team

 

When considering your team, you could give recognition awards, personal gifts and post Christmas incentives. Upgrading their workspace goes down well which could include an ergonomic office chair or an upgraded room for breaks. And don’t forget to get the office into the festive mood with decorations including a tree and Santa hats.

 

What is a ‘business gift’?

 

‘A business gift is a gift of goods that is made in the course of promoting your business and for which you were entitled to reclaim the VAT you were charged on its purchase as input tax. By ‘gift’ we mean a definite, voluntary and unconditional transfer of the goods for no consideration.’

 

If you do want to thank clients and staff at Christmas in this way, it’s probably fair to say that in general business gifts are not tax-deductible as the vast majority fall under the category of entertaining. However, there are exceptions and the specialist bookkeepers at team4 will be able to help you.

 

Tax and VAT implications

 

1. If the total cost, including VAT is less than £50 per employee, tax relief is available for the cost of businessesproviding company gifts to employees. The VAT can also be reclaimed on the cost of the gift. There are exceptions and the gift must not be cash or a cash voucher, cannot be linked to the employee’s performance, or provided as part of a salary sacrifice scheme. Gifts over £50 are treated as a ‘benefit in kin’ and are therefore taxable to the employer and employee.

 

2. Annual office events such as Christmas parties are also allowable for both corporation tax and VAT relief. The so-called ‘annual event’ allowance allows you to spend up to £150 per head on a tax-free event or series of events. However there are a number of points your should be aware of:

 

• The event must recur annually
• Must be available to all employees generally
• The £150 per head ‘exemption’ is inclusive of VAT, as well as any transport to and from the event, or accommodation for attendees
• If the cost of the event is greater than the £150 exemption, then the whole amount and not just the excess may result in a benefit in kind to the employee

 

3. Business gifts allowable for tax purposes to customers or clients fall into two categories:

• Giveaways to the public (like a free sample) to advertise your business
• Gifts less than £50 that advertise your business, not including food, drink or tobacco

 

Vouchers are allowable in this instance, so long as they are not exchangeable for cash. Multiple gifts to the same person amounting to more than £50 are subject to tax.

How can team4 help?

 

We hope team4 has demonstrated how important it is for you to thank clients and staff at Christmas and at othertimes of the year. It demonstrates to clients that you appreciate their continued business and to staff that you recognise their loyalty, hard work and professionalism. Customer retention and satisfaction are the key ingredients to a successful business. By thanking them you are showing that you recognise their invaluable contribution and you are also saying thank you for their ongoing support. If you are confused as to what constitutes a business gift and whether it is tax deductible, please get in touch with team4. You don’t want to be making any costly mistakes. Call us on +44 1825 763378 or +44 1903 442511 or email info@team4bookkeeping.co.uk

How To Reduce The Running Costs Of Your Business

Making savings to reduce the running costs of your business could be ‘make or break’. Figures suggest that the number of companies going bust this year could be the highest since the financial crisis of 2009. Statistics also show that insolvencies rose 10% from a year ago in the three months to the end of September and there has also been a sharp increase in the number of firms at risk of going bust. Before your company falls into this category, it’s worth considering how you can save monies. In this latest article from team4 bookkeepers, based in Sussex with worldwide clients, we look at eight things you can do that could dramatically reduce your overheads.

 

  1. Explore alternative business premises

 

Could there be an alternative to the long-term commitment of renting office space? If you are not fully utilising all the space you have at your disposal, you might consider downsizing. You may not need that large office anymore as you are now outsourcing your marketing and bookkeeping, so maybe a space half that size would suffice. Perhaps a co-working arrangement might work for you or could employees work from home? In the latter scenario, you could save rental fees and the associated costs of a physical building, saving you a packet.

 

  1. Check regular outgoing payments

 

Do you know what you are paying for every month? And if so, do you need everything that is going out of your business? To reduce the running costs of your business, it’s time to pull the plug on unused services. These could include subscriptions or networking fees or software apps that are never used. You can check with your team to see if services are still necessary. With software, consider downgrading to a free version. It really is easy to lose track of payments particularly if made by recurring payments such as on your credit card or direct debits. Here at team4, we think you will be surprised about what you are paying for that you don’t need.

 

  1. Are you getting the best energy tariff?

 

If you are not tied into a contract, find out if you can get a better deal. It’s worth checking a few companies to see the best contract terms available. On top of this, you may be able to make savings on the energy you use to reduce the running costs of your business. Turning the thermostat down by a degree or two can save a lot and your office does not need to be heated when you are not using it.

 

  1. Could you get a better deal on your mobile telephone and Internet?

 

When your mobile and Internet services are due for renewal, check out other deals, as there are some really good ones out there. Some suppliers have deals on the number of phones that you use. We recommend that you don’t automatically renew services including mobile phones, business insurance and broadband contracts. Renegotiate every year to make sure you are getting the best price.

 

  1. Shop around for the best price on supplies

 

You could be making savings on software and general office stationery. Buying in bulk can be a good option if you know you will use/sell the stock. You may find that there are some good deals around traditional sale times including Black Friday later this month (24 November) and Cyber Monday (27 November). Also be on the look out after Boxing Day and New Year.

 

  1. Go paperless to save oodles on printing costs

 

To reduce the running costs of your business, consider moving completely away from any paper documentation and go completely digital. Going paperless can really save you money and so encourage your team to only print out documents only when essential.

  1. Draw up a budget and stick with it

 

This will help to identify areas where you can make savings. Your budget can be based on your average income per month and our tip is underestimate income and overestimate spending. This is applicable irrespective of the size of your business, from start-ups to growing businesses.

 

  1. Get the best professional advice

 

Make sure you are getting the best advice from your bookkeeper and/or accountant. Tax relief is available for small to medium sized businesses. And don’t miss out on tax-deductible expenses across a wide range of categories including office supplies, uniforms and vehicle fuel.

How can team4 help you to reduce the running costs of your business?

 

In these tough times, we hope you have found our latest article about how to reduce the running costs of your business helpful so that you can lower some of the expenses and overheads associated with running your business. Here at team4 our aim is to support you by optimising your expenses, keeping close tabs on your spending and helping you set budgets. If you are looking to work with a bookkeeping team with a proactive approach and your interests at heart, please get in touch. We can help you with ways to improve your cash flow and ways to get your clients to pay on time. Call us on +44 1825 763378 or +44 1903 442511 or email info@team4bookkeeping.co.uk

How Much Should You Spend On Your Marketing Budget?

In a competitive and ever changing business world, marketing can make or break a company, but how much should you spend on your marketing budget? There is certainly no one-size-fits-all answer to that question. In this article, team4 looks at what a marketing budget involves, the criteria you should use to establish how much you spend and what is considered an allowable marketing expense.

What Is a Marketing Budget?

“A marketing budget is an outline of the costs that a company will spend to market its product or service. The marketing budget covers a finite period of time, the length of which can be anywhere between a quarter to a year.”

ProjectManager

It will need to include what your marketing goals are and how much you intend to spend. Marketing in itself encompasses a vast array of activities such as paid advertising, your marketing team or consultants, social media spending, leaflets and flyers and of course your website. It often helps if you can include a degree of flexibility.

Criteria for deciding how much to spend on your marketing budget

  • Size and type
  • Goals – establish short and long term goals including Key Performance Indicators (KPIs)
  • How established – new up and coming or older and more established
  • Understand your target audience – location, age, income, education, job titles etc.
  • Comprehend your market and competition – demographics, customers, influencing factors etc.
  • Optimal channels for reaching your audience

Opportunity Marketing suggests that between 5-15% of revenue is the acknowledged rule of thumb. However, your marketing budget should be set following a thorough analysis of your business, including the criteria we have outlined above.

What can you claim for marketing your business?

According to the UK Government website, you can claim allowable business expenses for:

  • Advertising in newspapers or directories
  • Bulk mail advertising (mailshots)
  • Free samples
  • Website costs

However, you cannot claim for entertaining clients, suppliers and customers and event hospitality.

When it comes to Subscriptions, you can claim for:

  • Trade or professional journals
  • Trade body or professional organisation membership if related to your business

You cannot claim for payments to political parties, gym membership fees or donations to charity, although you may be able to claim for sponsorship payments.

Controlling your marketing budget

Do your research to help you decide on the most effective marketing channels for your business. These could include video, blogging, social media, online advertising, events and/or print advertising. Once you have decided, and this may change, allocate the financial spend for each channel. You can then work out how much revenue and profit you should generate and how that will impact on your cash flow.

Choose the right accounting software for your business

Your marketing spend can then be tracked by your accounting software to give you a detailed breakdown of your marketing spending. This will also give you the data required in order to track performance over time, so you remain in complete control of the money you are spending. By understanding this, you can make more informed decisions in the future. You will know where you are spending the money, which channel brings the best ROI and of course how much you have spent. If you are unsure which accounting software would best suit your business, ask your bookkeeper or accountant.

How can team4 help you with your marketing budget and allowable expenses?

The latest blog from team4 did not set out to tell you how to market your business. However, it is clear to achieve success, your business must stand out from the crowd. In this way, you will grab the attention of your potential customers and clients. Without effective marketing, your business may struggle to compete in the market and reach your objectives. Your business is unique, which should be reflected in your marketing activities and budgeting strategy. Some of your marketing will fall into allowable expenses and if you want to understand more about your marketing spending and your ROI, we are happy to help. And of course, if you need to outsource your accounts, including setting up cost codes in your accounts software, please get in touch with team4 by calling us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk to find out more.

Five Reasons To Outsource Your Accounting Operations

Why is it important to outsource your accounting operations? Every business irrespective of size needs to keep accurate and up-to-date records of every financial transaction. This includes sales, purchases, payments and receipts. Outsourced accounting is becoming more popular as it helps to reduce business overheads and you won’t need a dedicated office space. In team4’s latest article we look at five of the benefits of outsourcing your accounting operations by having a professional accounts department.

Reasons to outsource to a professional accounts department

  1. Expertise
  2. Better use of your time
  3. Reduced costs
  4. Scalable and flexible options
  5. Peace of mind

What is outsourcing?

“Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office.”

Investopedia

  1. Expertise – make more effective decisions by knowing the financial situation of your company

It makes a lot of sense to outsource your accounting operations. Trained professionals will have the expertise and will understand how to apply the best practices to your business. You will know the current state of your company in real time. By knowing the margins on every client or job, keeping a healthy cash flow and knowing the productivity of your team, you will have an insight into what drives your bottom line results leading you to make more effective decisions. You will also remain compliant with current legislation, which is apt to change frequently. Buying or renting accounting software will become a thing of the past. Your expert outsourced accounting department will use the software best suited to your business.

  1. Spend time running your company – not doing the books

As your business grows, bookkeeping and accounting tasks will grow too. You may initially have been able to cope with these yourself, but not anymore. It’s far better to free up your valuable time, and let’s face it, time is the most precious resource you have, by doing something more productive and what you do best, running your company. You can spend your time developing and growing your business to increase revenue knowing you have a professional outsourced accounts department to take care of the additional financial implications. So, don’t let bookkeeping and accounting distract you from operational tasks.

  1. Reduced costs – save on payroll and productivity costs

Why not pay for the actual accounting itself? When you outsource your accounting operations, you won’t need to employ a member of staff on a full-time or part-time basis. You will save in payroll and productivity costs. You can determine the number of hours required each week and this way you are not employing someone and paying them for hours that are not required. The money savings can be quite considerable.

  1. Scale up or down depending on requirements

When you outsource your accounting operations, it will give you lots of flexibility. You will be able to scale up or down based on your requirements. This could range from a few hours to few days a week. You will have the flexibility to bring in the help and expertise you need during a time of growth. And you won’t be adding to your payroll. And if times become challenging, you may find you can ride out the storm by reducing your accounting costs and using their expert knowledge. You can also get the latest developments and technology without having to invest in it.

  1. Peace of mind

Ultimately, this is what you are looking for. By turning your bookkeeping and accounts over to experts will ensure you have confidence and trust in the accuracy and quality of the financial information of your company.

How can team4 help you to outsource your accounting operations?

Outsourcing your accounting operations will give you a cost-effective, affordable, efficient and valuable alternative to functions that have been carried out in-house. You will not only benefit from the cost and time savings but also have the peace of mind that your books and accounts are being looked after professionally so that you can focus on your business. Outsourcing can be a very effective solution when trying to survive in tough times although we know that outsourced bookkeeping and accounting is not the best solution for everyone. Bookkeepers know bookkeeping and by using team4, you will have a team of experts at your disposal. Call us on +44(0)1825 763378 or email info@team4bookkeeping.co.uk to find out more.

Seven Questions To Ask Your Bookkeeper

Here are our suggestions for questions to ask your bookkeeper. Making sure your new bookkeeper is a good fit for your business is so important. But do you know what questions to ask your bookkeeper prior to using their services? The first place you will probably start is doing an Internet search and checking out a bookkeeper’s website is a great way to discover more about them. Here you can check out the services they offer. The site will also be a good indication of how professional and experienced they are and it may answer some of your questions straightaway.

Questions to ask your bookkeeper before you hire them

 

  1. How professional and experienced are they?
  2. What is the scope of their bookkeeping work?
  3. Who will be responsible for your account?
  4. What is their availability and how will they keep in touch with you?
  5. What accounting software packages do they use?
  6. Can they help your business grow?
  7. How much do they charge?

 

  1. How professional and experienced is the bookkeeping practice?

 

This is one of the first questions to ask your bookkeeper and to determine this, we have broken it down into a few more enquiries you can make.

 

  • How long have you been in business?
  • Are you registered and qualified?
  • Do you have experience in my type of business?
  • Can you provide me with examples of satisfied clients?
  • How will you protect my confidential data?

 

  1. What is the scope of their bookkeeping work?

 

First things first, make a list of services you are expecting your bookkeeper to offer. For example, do you want them to run your payroll and prepare your VAT returns? Now you are ready to ask what services they offer, as these differ between bookkeeping practices. Some bookkeeper’s skills are limited to data entry whereas others provide a more comprehensive package and can mange your accounts and analyse your financial statements.

  1. Who will be responsible for my account?

 

One of the key questions to ask your bookkeeper is whether you will have somebody personally responsible for your accounts? It’s always good to have a dedicated person who knows your business. However, you will also want to know what happens when that person is on holiday or sick. Backup is usually easier within a bigger bookkeeping firm.

 

  1. What is your availability and how will you communicate/keep in touch with us?

 

Ask about their availability and discover if they only work during normal office hours, Monday to Friday from nine to five. You will also want to know their policy for replying to emails and returning phone calls. And with communication, how will they expect to receive your information, such as bank statements and invoices.

 

  1. What accounting software packages do you use?

 

Check which ones they use as if they use several, they will be able to advise you on the software package that is best for your business. Some of the most popular are Xero, QuickBooks and Sage. If you feel that you would be able to do this aspect in house, check if they offer training and support packages.

 

  1. Can you help to grow my business?

 

A bookkeeper will help you to see the big picture of your business finances and give you that extra pair of eyes to check your cash flow and offer advice. Also, by having a bookkeeper on board, you won’t be doing your own accounts and will have more time to spend on doing what you do well and that’s running your business. They can maximise your income and perhaps help with the costs you can cut.

 

  1. How much do you charge?

 

This is one of the most important questions to ask your bookkeeper, as you must make sure you know what you will be paying. Will you be invoiced by the hour, monthly, or is there a package price? If it’s the latter, be aware of what is included and what isn’t. And don’t forget to ask if there are any extra charges. Also, when will they expect payment? Knowing this will help you to budget and of course it will impact your cash flow.

 

How can team4 help you with bookkeeping for your company?

We hope you have found questions to ask your bookkeeper helpful. team4 have been in business for over 30 years with a team that has been steadily growing over the years to offer you everything you need as an outsourced bookkeeping department. A free consultation is available, so you can meet us either via a video link or in our East Sussex office in Uckfield. This is a great opportunity to ask those questions and to discover if we would be a good fit for your business for an efficient and smooth relationship with your new bookkeeper. To find out more, call team4 on 01825 763378 or email info@team4bookkeeping.co.uk. Now is a great opportunity to read through our brand new site and see what team4 has to offer.

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

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.

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