15 Jul What Is A Bookkeeping Service?
If you run a small business, then you need bookkeeping services. This will help you to keep track of your finances and help you know whether you are making profits or losses. Plus, maintaining your financial records is part of regulatory compliance. It takes skill, time and effort to maintain your financial records. That is why a lot of business owners prefer to outsource this aspect of their business. So, if you want to know what is a bookkeeping service? Read on to find out more.
A bookkeeping service will provide you with chartered accountants to help you keep your financial records. This includes:
Preparing your tax returns
Reconciling your financial statements with bank records
Accounts receivables and accounts payables
Cash flow analysis
When hiring a bookkeeping service, you can opt to hire an individual that can perform these functions or you can opt to work with fully-fledged teams, who have the experience, skills and training required.
Do not confuse a bookkeeper with an accountant. A bookkeeper keeps the financial records of your business, while an accountant is a financial strategist. An accountant will analyze and interpret data, while a bookkeeper will not do this. The bookkeeper will just handle the recording aspect of transactions in your business.
You might be wondering whether it is worth hiring a team or whether you would rather handle your own financial records. This depends on various factors, such as:
How frequently you need financial transactions and records handled
Volume of the work – It can be time consuming
How financially literate you are
There is also the option of using software, such as QuickBooks. While this can be helpful, there are certain aspects that you might need help with. For instance, you will need someone to advise you on paying taxes and tax regulations.
Some of the advantages of hiring a service provider include:
It will be easier for you to pay your taxes on time. This is because your financial records will be organized, so it will reduce a lot of hassle for you.
Your financial records will be up to date. Even if you have an accountant, you need to provide them with information that is up to date.
The best time to hire a bookkeeper is when you have just started your business. This will help you record your financial transactions right from the beginning, otherwise you risk going for months with unrecorded financial transactions.