Why Small Businesses should Hire Online Bookkeeping Services in UK
Managing your accounting books is one of the most important tasks that can determine the prosperity of your business. Unfortunately, not many people enjoy this task, and the truth is that of all the tasks associated with running a small business, bookkeeping is the most challenging. On the other hand, those who try handling the task spend hours upon hours trying to understand their businesses better.
Instead of wasting your time trying to figure out things you have no clue about, consider outsourcing the task to an online book-keeper. A bookkeeper will assist you with managing daily accounts transactions, leaving you enough time to focus on other duties. In addition, an online bookkeeper can help you with several other tasks including;
- Keeping track of all business transactions including sales, purchases, payments, and receipts
- Help you with maintaining your business design and reviewing your internal business process
- Collection, organization, and recording of the daily financial data and later storing it in general ledgers for future reference
- Recording your financial information in a way that is easy for your accountants to access and understand it
The duties of a bookkeeper go beyond recording daily financial information for your business. The professional is highly skilled in using financial recording method just like the accountants do, and will work with you help you make sense of the numbers. From the high skills in using accounting software, a bookkeeper is in a position to;
- Offer you advise on the best add-on solutions that will simplify your business workflow
- Offer you advise on the best and most simple payroll systems depending on the size of your employee database
- Going through records entered by other employees and rectifying any mistakes that might have been recorded
- Train you how to use accounting software for the benefit of your small business
- Offer support for the day to day running of your business by acting as your partner in helping you ensure things are running smoothly
Core Modules and Features of Bookkeeping Services in UK
When hiring online bookkeeping services in UK, you are seeking for someone to help you with recording and processing accounting transactions for your business. In this case, the bookkeepers must be adept at using the accounting information system which includes several modules. In order to make the right decision when choosing an accounting software for your business, you must first understand what each module entails. The most commonly used modules are as discussed below;
Accounts payable module
This includes the money your business owes its vendors. These modules function by;
- Tracking all money due to vendors, the payments terms of all invoices, and any discounts offered
- Proving vendors with computer-generated checks through printing
- Contains a master file that includes the vendor details such as name, address, and contact details
- It ensures that all transactions and payable balances are as per invoices and other internal documents including the GRNs and P.O’s
Accounts receivable module
This module includes all the money owed to the business by its customers. This module entails:
- Invoicing customers and processing all the payments received
- The information from this module is used to create invoices and bills to be sent to clients
- It captures any deposits made on business’ bank account and automatically uploads the information on the account of the respective customer
- It keeps the customer information updated and is capable of showing all the money a customer owes the business and how long the balance has been outstanding
- It has a master file that contains all the customer information including the name, address, and contact information
Balance sheet module
A balance sheet typically highlights the financial situation of the business. This module has the following characteristics;
- It outlines the assets, liabilities, and equities of the business
- It is mainly used for creating business reports on cash flow, budget, and any other financial analysis of the business’ financial situation
Charts account module
This entails a list of accounts used by the business in its accounting process. This module has the following features;
- It uses a series of code to determine the information being tracked by the information system including income, assets, expenses, and equity
- It determines the level of information be tracked by the accounting system and which reports the system should generate
- Depending on the business requirements, the charts module can use sub-coding at the location, department, funding source, project, and activity level with the aim of gathering all necessary information
Inventory management module
This module deals with the flow of inventory within the business. It is used to open and close balances at a given time frame and has the following characteristics;
- Uses various costing models as defined by the business
- Helps in managing stocks by use of multiple units and pricing
- Keeps track of stock transfer, receipts, and issues
- Creates and maintains bill of materials
This module helps your business’ HR department with salary calculation and payment. Your bookkeepers can help you customize this system depending on your business needs. However, some of the common features of this module include;
- Time management
- Automated and consolidated key processes
- Authorized end-user access that improves the security level of the system
- Ability to run complex payroll system efficiently
Point of sale module
This module represents the place where any sales transaction can take place may it be online, retail store or any other place. This module allows you to add devices at various checkpoints with the aim of monitoring unit changes, analyze your inventory per item basis, and keep a record of when you need to reorder. The point of sale module has the benefit that it records every sale as it happens and hence your inventory records will always be up-to-date.
Should You Hire In-House or Self-Employed Bookkeeping Services
The success of your small business is determined by the accuracy of your financial books. Experiencing errors in your accounting records can result in the business shareholders losing faith in the organization. You can, however, avoid such instances by hiring experienced bookkeeping services London.
When it is easy for big firms to outsource these services, small firms are a bit hesitant. However, this doesn’t have to be the case since WeAccountax offers customized bookkeeping for small business. More so, the accounting firm is well established as cost-efficient and independent firm offering online bookkeeping in Glasgow, Leads, and York other Major cities in whole UK . When searching for self-employed bookkeeping services, consider the following factors to ensure you make the right choice.
Cost of the service– as a small business, you may not have a lot of funds which makes it important to analyse the affordability of the firm you want to hire. You need to make choice between the amount of work your firm has to offer, the number of hours the bookkeeper will work, and fixed price charges.
The firm’s reputation– before you hire confirm that it is properly accredited to offer the service. The certification gives you the assurance that you can depend on the firm to handle all your bookkeeping needs.
Competency level– before you hire a firm, ensure it is competent in handling some crucial tasks for your small business such as payroll management, tax services, cost analysis, and general bookkeeping services.
Level of experience– before settling for a bookkeeping firm, you need to find how experience they are in their services. Also, find out if they are capable offering specialized services to match your business needs.
If you don’t know where to start looking for the right accounting firms, you can seek referrals from your attorney, financier, banks, and other business owners. Depending on referrals has the advantage that those referring you have experience and can give you the pros and cons of outsourcing bookkeeping services.
Benefits of Outsourcing Bookkeeping Services
If you are not yet sure whether you should outsource bookkeeping services for your business, the following benefits of outsourcing should convince you further.
It helps cuts cost significantly
Hiring an in-house bookkeeper requires that you set aside time and money for carrying out interviews. Once you hire one person, you need to go ahead and take him through training to ensure he is conversant with how your company works and also get a detailed understanding of your bookkeeping system.
Outsourcing, on the other hand, is easy since accounting forms are made of certified professionals who have worked with various businesses and accumulated enough experience. Accounting firms will also offer you customized services to meet your business needs and your budget. They also give the option of paying on an hourly basis or fixed price depending on your requirements.
High skill levels
Since accounting firms work and interact with various businesses in terms of size and industries, they have accumulated a lot of professionalism in handling bookkeeping services. Even if you take your in-house bookkeeper for training, his skill level will never match that of freelancing bookkeepers.
Working with an in-house employee means that you have to closely monitor him to ensure that the work is done in time. At other times, there might arise several distractions in the office that will prevent him from fully concentrating on his work. On the other hand, a freelance bookkeeper is managed and supervised by the accounting firm. This saves you the time spent supervising while at the same time you are sure that the firm will deliver on your expectations.
It’s easier to replace a self-employed bookkeeper if he is not performing
Unlike self-employed bookkeepers, in-house bookkeepers are protected by several labor laws making it hard for you to fire or replace them in case of underperformance. Knowing this, in-house employees can fail to perform on purpose. Self-employed employees, on the other hand, know that there is competition in the industry and their chances of remaining under your employment are dependent on their performance. This prompts them to perform better and always deliver on time.
Why You Should Hire Us
WeAccountax is a leading cloud bookkeeping in London and Bristol offering and the entire United Kingdom. The firm is renowned in the industry for offering bookkeeping service to distinguished businesses in various industries. If you are looking for double entry bookkeeping the UK, we are you go to accounting service provider. Our team comprises of highly qualified and experienced accountants who ensure that your business financial transactions are properly recorded to come up with clear financial statements that will help your business shareholders have faith in the organization.
In addition to bookkeeping services, we also offer other accounting services that your business may be looking for. When all your financial transactions and bookkeeping services are managed by one firm, it becomes easy to understand your business better. With this understanding, you can easily expand your business to new markets. Using our services to cater to all your accounting and bookkeeping needs makes it easy for us to provide you with better reports that you can use in making informed business decisions.
Hiring WeAccountax small business bookkeeping has several advantages including;
- Giving you an opportunity to delegate small tasks when you have other obligations and have no time to manage your business books. At the end of the year, you realize that you have handles all your business and personal errands and at the same time, your accumulated tax-deductible expenses have been handled.
- Avoiding accounting errors that might occur if you set aside a single day within the week to quickly go through financial entries. Our firm sets aside enough time to go through your books and ensures that all entries are properly recorded in a way that will be easy for the accounts to interpret them.
- While we take over your bookkeeping duties, any clumsy errors are avoided. While your invoices are error-free, your clients are happy with doing business with you as they know they can always trust how you keep your records. Handling your own bookkeeping might wear you down considering you have other obligations within the business, this can result in errors. While your client might understand the first time, if it happens frequently they will end up losing confidence in you. Instead of risking losing your customers, consider hiring our professional bookkeeping services.