When starting a business, people frequently focus on the product or service, logistics, or even the building, while financial bookkeeping tends to get overlooked. It can feel like you can get away with this for the first couple of months of your operations, and then the quarterly accounts come around and you realise that you’ve left yourself in a tricky situation.
We understand that bookkeeping is not the most exciting aspect of owning a business, but it’s crucial to get it right from the outset, as this will help you stay on track throughout the future of your business.
You could depend on some DIY bookkeeping at the start of your business, but outsourcing accountancy and bookkeeping services is essential for keeping your business on track and compliant with its tax obligations.
At Tax Driven Accountants, we know the positive impact that outsourced bookkeeping services can have on the success of a business, so keep reading to find out why your business needs a professional bookkeeper.
Your Books Are Taking Over Your Time
As a business owner, it can feel like you have a million and one tasks to complete in a day, all of which are very time-consuming.
Something that shouldn’t be taking up your time is bookkeeping, and if you find yourself spending hours looking at receipts and tracking your expenses, it’s probably a sign that you need some support in the form of quality accounting bookkeeping services.
Working with a bookkeeper can free up your time, so you can invest it in the parts of your business that you really care about.
Your Books Are Never Up to Date
Falling behind on your bookkeeping can lead to disaster for your business. Being behind means that the financial data you have for your business is outdated and unreliable.
Your business could be experiencing a substantial financial crisis, and without up-to-date books, you might not be able to identify this crisis until it’s too late.
Not being up to date with your business’s finances can leave you feeling anxious and unprepared, affect your ability to make informed decisions, and can even lead to you missing an essential financial deadline. With a cost effective bookkeeping solution from a professional accountancy service on your side, you can rest assured that your finances are in safe hands.
Errors Have Become Frequent
Human errors are not unheard of and can occur when businesses assume the financial responsibilities of their operations. Unfortunately, bookkeeping errors can have a huge impact on your business and completely skew your accounts.
This means that you can run into problems such as under/overpaying your taxes or inaccurately declaring your income, which can have substantial consequences. If HMRC are made aware of any mistakes, you could face a penalty.
You’re Struggling to Understand Your Financial Reports
If you are someone without a financial background, your business’s financial reports might make little to no sense to you. It is not uncommon for businesses to lack confidence in interpreting their balance sheet or profit and loss (P&L) statement. Having someone to help them understand it can make a significant difference.
Professional bookkeepers don’t just get the numbers down on paper; they help to explain them so that you can spot important trends or discrepancies in your financial statements with much more confidence.
Having this support can help you make smarter decisions for your business.
You Struggle at Tax Time
All businesses in the UK are expected to file their annual accounts with Companies House by the 28th of February, which means that many businesses scramble at the start of the month to get their financial statements together.
If, when tax time comes around, you find yourself struggling to get your data together and you’re completely uncertain about your tax liabilities, you need a bookkeeper. Whether you go to an accountant in person or use online bookkeeping services, you need someone who can ensure that your records are fully organised all year-round and have the information you need.
Because a bookkeeper will keep your records and finances well-documented from the start to the end of the tax year, when filing comes around, you can do it with confidence.
Your Business is Growing, and You Can’t Keep Up
Something that every business wants is growth; this means that your efforts are paying off and you’re running your business well. However, with growth comes a significant increase in financial administration.
As your business grows, you might employ more workers, which means additional payroll work. You may also need to increase your inventory or manage multiple income streams. Very quickly, managing your finances can become much more difficult than it initially was.
Using outsourced bookkeeping services ensures that your financial records keep up with the growth of your business. As well as ensuring that your finances are in check as your business grows, a good accountant can help put in place the foundations to enable further scaling of your business.
You’ve Had a Letter From HMRC
It is quite normal for HMRC to reach out to businesses for a compliance check, VAT review, or audit. This often occurs due to inconsistent or incomplete records. Enquiries from HMRC can be scary, especially if you know that your records are not entirely accurate or have errors.
Even if it’s too late to stop an inquiry, a bookkeeper can help you prepare and ensure that your financial records are better managed and accurate, preparing you for your audit
You’re Struggling With Accounting Software or Not Using It at All
Many businesses download accounting software, assuming it will handle all their management needs; others will avoid software entirely, preferring a pen-and-paper approach instead.
Many businesses that choose to use software, unfortunately, do so incorrectly. This means that they incorrectly input data, duplicate existing data or even miss great features that the software offers.
A bookkeeper has the experience and knowledge to automate your accounting processes using this software, which includes connecting your bank feeds and ensuring everything is streamlined and accurate.
In addition to managing your accounts manually, experienced bookkeepers understand how to maximise the potential of accounting software, ensuring that your business’s financial requirements are fully addressed.
Why You Should Work With Tax Driven Accountants
At Tax Driven Accountants, we have years of experience providing financial services to a diverse range of businesses, and we offer comprehensive bookkeeping services for small businesses. We are ready and waiting to help you take financial control of your business.
Some of the reasons why your business should work with us include:
Varied Expertise
At Tax Driven Accountants, we don’t just work with one type of business, and we are always ready to support a range of companies. From trades to retail and professional services, we have supported a diverse range of industries in meeting their accounting needs.
Our experience provides us with the resources we need to understand the challenges of your business. By collaborating with other companies, we can apply what we have learned to manage your books and help your business run smoothly.
Whether you’re overcoming VAT complexities, handling multi-channel income or paying CIS contractors, we’re here to help.
Software Support
When set up and used correctly, accounting software can be transformative for your business. We have helped clients with a range of different platforms, and we have the experience to help you integrate new software with your bank, ensuring that everything runs smoothly.
Our assistance enables the seamless integration of software into your tax process, significantly simplifying and reducing the time required for your business operation.
Peace of Mind
We know just how stressful managing the financial side of your business can be, especially if you have no financial background. When working with Tax Driven Accountants, you can rest easy knowing that your records are accurate, compliant and up to date.
Bid farewell to financial worry and feel at ease, knowing your finances are prepared for any last-minute audit or unforeseen expense. With us, you have the support you need.
Use Your Time to Grow Your Business
Bookkeeping can be incredibly time-consuming, and if you’re taking on that responsibility while trying to run your business, you are not committing the time to your business that it deserves.
If you are unable to commit the necessary time to your business, you may delay expansion and stunt your company’s growth.
Leave bookkeeping to the professionals and use your time to focus on the things that really matter to you. With bookkeeping no longer on your mind, you can spend time building relationships with your customers, expanding your team and increasing your revenue.
Support Your Financial Planning
A good accountancy team, such as the one at Tax Driven Accountants, won’t just ensure that your business is compliant; they will put together plans for your business’s future.
With the help of detailed records and regular reporting, you will have a clearer view of your business’s cash flow and future projections. This means you can plan with confidence for the financial future of your business and build a solid foundation for growth.
When you work with us, we will create a financial strategy for your business that enables your business to grow and thrive.
Take Control of Your Finances With Tax Driven Accountants
Through this guide, we hope to have not only emphasised the importance of outsourcing an accountant for the functionality of your business, but also provide more details on why Tax Driven Accountants is the obvious choice for your bookkeeping needs.
With us on your side, keeping the financial side of your business doesn’t need to be a worry. Get in touch to find out how we can help you take control of your business’s finances today.
