Making the right bookkeeping decisions

When you start a new business, the temptation is all too often to try to do everything yourself in order to keep costs to a minimum. Movie All Is Lost (2013)

However, like many things in life, this arrangement can wind up as a source of frustration as well as false economy.  Getting your bookkeeping right on an ongoing basis is an integral part of the efficient running of your business and, while it needn’t be complicated, it can be time consuming and a surefire way of distracting your attention from the more important elements of your business (like getting new clients and making sales).

There are several ways of addressing your need for efficient and effective bookkeeping.  First, you can burn the midnight oil in a state of stress to get it done.  Second, you can recruit someone to do it for you, or third you can outsource it from a supplier of bookkeeping services.  Because the right bookkeeping systems will allow you to make valuable use of the information it produces, the return on investment of doing the job yourself normally isn’t great.  Add to that the fact that if you’re doing the bookkeeping yourself, you’re not free to do other things, and the case for getting an expert to do the job starts to make complete sense.

Once you’ve decided that an expert is called for, you need to decide whether you can justify the cost and inconvenience of adding someone to your payroll to do the job or whether you should outsource it.  Outsourcing your bookkeeping could mean handing it over to a local firm; getting someone to come into your premises from time to time or operating online; the choice is yours.

Once you’ve made the right decisions on how you manage your bookkeeping tasks, here are just some of the things you can expect:

  1. Targeted management reporting to help you run your business run more efficiently.  With the right bookkeeping system in place, you’ll be able to have a clear and regular overview of your profit levels, any VAT due and what you’re spending your money on, thanks to these management accounts.
  2. The ability to measure your actual performance against your goals.  Like most business owners, you’ll have set goals and objectives.  The management reports produced by your professional bookkeeper will help you ascertain how you’re performing against plan, so you can make any necessary adjustments.
  3. Confidence that your figures are accurate.  If you’re inputting your own data at midnight, the chances are you’re more likely to make mistakes than someone who does this sort of work day-in and day-out.
  4. The knowledge that your bookkeeping is being looked after while you’re busy running your business.  Working this way means you needn’t lose focus on your money-making activities in order to make sure your bookkeeping stays up to date.
  5. The efficiency that having an expert do the job brings because like all things in life, there are horses for courses.
  6. Tight cashflow.  Getting money in and paying money out is the lifeblood of your business and the right bookkeeping system will help you make sure that the movement of cash in and cash out is being managed in the most efficient way.
  7. The freedom to do what you do best.  Put simply, handing your bookkeeping over to an expert will allow you to focus on what you do best: running your business.
  8. A solid foundation on which your whole accounting process will be built.  The right bookkeeping system will feed directly into the other requirements for your accounting process, without the need for double-keying information.

Add to all of these things the fact that a professional bookkeeper will know exactly which software will do your job best and you really start to see the attraction of having the right team on board.

To find out more about our bookkeeping services, feel free to get in touch.