It’s one of the most daunting thoughts when you decide to set out in business on your own – you’re now responsible for sorting out your end of year accounts.
After all, the taxman will want to know what you’ve been up to and how much you have earned, so he can take his share.
Accurate bookkeeping is the foundation of any successful business, so, logically, you need an accountant to help you out, right?
Well, actually, not necessarily!
If you are a non-limited company and run a small business such as a mobile business, a consultancy or are a sole trader, you do not need to have an accountant! However, you can take advantage of the services offered by a bookkeeper, who can do many of the things an accountant does, but at a significantly reduced cost.
Basically, many smaller businesses start with bookkeeping services and then decide to include accountancy services as they develop.
Explaining the difference between the two jobs, Kim Kelly, who runs Granville Bookkeeping, says: “An accountant is the doctor and a bookkeeper is the equivalent of today’s nurse - a health professional who can do a lot of what a doctor does - but the doctor still needs to do the high-level health care issues, if required!”
In simple terms, a bookkeeper helps you with recording your daily transactions in a clear and consistent way to help you build a successful business.
They can help you with:
Accountants can analyse the financial information compiled by a bookkeeper or business owner – if required. But if you are not a limited company, you don’t have to use one.
Importantly, if you are a small business (sole trader), a bookkeeper can save you time and money by looking after your books, leaving you free to get on with your work so you can earn more money!
Another benefit of using someone like Kim at Granville Bookkeeping is that she works in the ‘virtual’ world, so it doesn’t matter where you live in the UK, you can use her services while you focus on your business!