When we work with our clients on business accounting matters, one thing that we often provide as part of our remit is bookkeeping services. If you’re new to business or self-employment, it’s very handy to know exactly what this entails – you can then make a choice as to whether you take care of this element of your accounts yourself or outsource it to a professional company like Blue Skies.
What are bookkeeping services?
Bookkeeping is essentially keeping a record of all financial transactions that are conducted during your business dealings – and while it’s an essential element of your accounting responsibilities, it’s only one part of the overall process.
When you do your bookkeeping, or take on a professional to provide these services, it involves all sales, purchases, invoices, receipts, petty cash and any other financial transactions being inputted into a recording system. These figures can be recorded in hard-copy formats, such as in ledgers and day books, or via computer software. This creates a ‘trial balance’ from which an accountant can prepare end of year tax and VAT returns, and makes the job of completing these legal requirements much easier and less time consuming.
A trial balance isn’t just useful for calculating end of year accounts either. Because these financial records are kept updated on a daily, weekly or monthly basis, they are incredibly useful when it comes to keeping your finger on the pulse of your business finances and general circumstances. From the data collected in your account books, you can see whether you’re making a profit or running at a loss, identify your cash flow situation and note any missing or late payments or areas of concern.
Why use professional bookkeeping services?
While bookkeeping isn’t necessarily complicated, it can be a real drain on your time – with so many different books or systems to enter your figures into, and the amount of work required growing in line with the development of your business, you can soon find that several hours can be swallowed up by this easy task. It can also be difficult to know what you can enter as an expense or what proportion of some expenditures can be claimed as a tax deductible business cost.
By using business accounting specialists like the team here at Blue Skies, you can pass all of your accounts and tax matters into our capable hands – our comprehensive bookkeeping services mean that you can leave the numbers to the experts, while you head out and build on your business successes!