All business owners will likely have some knowledge of bookkeeping and accounting, but whether you keep a record of every invoice, receipt, and bank transaction yourself, or outsource all of your financial responsibilities to a professional accountant, it’s important to have a good understanding of the services they can provide.
This way you can compare the benefits of different accounting firms, as well as the value of paying for professional accounting services, versus taking on the task yourself. Below, we'll explore some of these benefits and look at where to find the most suitable bookkeeping and accountancy services for your business, whether you’re a sole trader, SME or an enterprise.
What’s the difference between a bookkeeper and an accountant?
Essentially, both manage the finances of a business, so you’ll often find the words used interchangeably. However, there is a distinct difference in the two roles, and it’s possible to hire them entirely separately. Some accountancy firms offer a broader range of services, but the main elements of bookkeeping and accounting are listed below:
Bookkeepers
Accountants tend to manage the day to day financial record keeping of a business, including:
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Maintaining records of supplier invoices, customer invoices and staff-based expenses
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Reconciliation of banking records with the above financial records
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Credit control chasing duties for non-payment issues
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Handling staff payroll, including pension contributions for employed staff
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Preparation and submission of VAT returns to HMRC
Accountants
Accountants typically don’t take care of the above responsibilities, but they use the data provided by the bookkeeper to provide a broader financial picture. This is often to allow a firm to comply with legal regulations, and maximise their tax efficiency. Their responsibilities typically include:
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Preparing the official year-end financial statements for Companies House
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Tax Planning - looking at ways to legally minimise your tax bill
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Calculating the firm’s corporation tax liability and submitting the CT600 form
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Legal Advice - they help you to understand your business’ financial capabilities more clearly, and can perform an intermediary role between HMRC and your business, especially when it comes to queries
Many small and large businesses prefer to outsource accounting services to ensure that they are maintaining accurate and compliant records. While it’s not a legal requirement to use a professional accounting firm, they offer substantial peace of mind when it comes to running a profitable and legitimate business.
What sort of services do accountancy firms offer?
When it comes to outsourcing your bookkeeping and accounting needs, many firms can provide a package of services. It may be that you have staff maintaining certain elements of bookkeeping, but still need assistance with payroll responsibilities, for example.
It’s a good idea to have a list of services you want them to provide you with, so that they can put together a bespoke package. However, if you’re looking to outsource everything, modern accountancy firms tend to cover all elements of financial services for business, such as:
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General Bookkeeping service packages
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Payroll processing
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Banking reconciliations
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Credit control, including including one of, or both accounts payable and receiveable
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Setup of and training for cloud accounting software for your business, such as Sage, Xero or QuickBooks
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Preparing annual accounts for sole traders, partnerships, or limited companies and filing self-assessment tax returns
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Preparing and filing corporation tax returns
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Managing VAT registration
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Advisory services and financial reporting/future forecasting
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Filing annual confirmation statements and managing any official structural business changes with Companies House
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Tax Planning and efficiency strategy
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Financial audits, where required
So, whether you just want payroll taken care of, help with accounting tax services, or a full service accountancy and bookkeeping bundle, a bespoke accounting services package will ensure you address all your business’ distinct financial needs.
Get in touch below and we’ll match you with an accounting firm that fits your needs.
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Benefits of accountancy services vs. managing your own finances
While a lot of smaller businesses and sole traders opt to minimise spending by taking care of their own bookkeeping and accounting needs, it’s important to consider the risks versus benefits of taking your companies finances into your own hands.
Even small business owners often find that the benefits of hiring a professional far outweigh the time spent on and risks associated with independent accounting. Below are a list of benefits and risks to help you make a considered choice:
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Using a professional accountancy firm |
DIY accounts as a non-professional |
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They have advanced knowledge of compliance with and any legal changes relating to tax laws, as well as deadlines for filing tax documentation |
There is an increased risk of missing filing deadlines or recent legal changes. This may lead to penalties and have a negative impact on your business reputation |
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Has expert knowledge of all legitimate tax-deductible expenses so can structure your finances to receive the lowest legal tax bill |
You may overlook legitimate deductibles, potentially reducing profit margins and your business growth budget |
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Guaranteed accuracy and credibility, which can be particularly important when trying to secure business finance or partnerships |
There is greater risk of miscalculations and errors, especially when it comes to complex business finances. As well as resulting in fines, this type of inaccuracy can potentially dissuade prospective financiers, partners or clients |
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Professional business insight which can help if you’re hoping to further invest in your business’ growth. Having expert financial advice from someone who has an intimate view of your business performance can be invaluable to your long-term success |
It’s difficult to plan ahead if you’re not sure about your budget and cannot predict accurate financial projections. This can lead to slow and reactive decision making, and potentially missing valuable opportunities |
How Money Helpdesk can help with your accounting needs
At Money Helpdesk we can offer advice in all areas of finance, including complete bookkeeping services, as well as accountancy and financial management services. Whether you’re looking for simple taxation advice for legal compliance or a complete business development strategy, we can match you with a professional accounting service to fit your needs.
We only work with reputable, customer-focussed accountancy providers, so you can be sure that you’ll be paired with an insightful and innovative firm who puts your business’ financial interests first. Get started here to get matched with a knowledgeable accountant today.
FAQs
For a small business, professional bookkeeping can be critical to your success. Aside from reducing the need to spend your valuable time and focus on bookkeeping duties, they can ensure you build a solid business foundation with accurate records that will be easier for accountants to utilise.