There seems to be a general perception amongst smaller companies that the bookkeeping function is nothing more than a necessary evil and something to spend as little time and expense on as possible. However, as any provider of bookkeeping services in London will tell you, it’s more than just about keeping the taxman happy. Up to date accounts are an essential tool in effective management of your business and provide a real time snapshot of your company’s health, its strengths and its weaknesses.
Here we discuss 5 valid reasons why you should dismiss the idea of either doing it yourself or employing a fulltime bookkeeper and instead outsource the role to one of the many excellent bookkeeping services in London:
1. It saves you money
Yes, strange as it may seem, you can actually save money or, more accurately, make more money by outsourcing bookkeeping services in London. This is simply because, if you are attempting to fulfil the function yourself by using an off-the-shelf software package, the likelihood is that you are using valuable time in which you could be out earning far more generating new clients and sales than you are spending on the bookkeeping service itself.
2. You only pay for what you need
Far too many smaller businesses end up employing a full time bookkeeper with all the fixed overhead that entails regardless of how much business the company is doing at any one time. The beauty about using bookkeeping services in London is that you will only get charged according to the workload involved so that if things go quiet unexpectedly, you will only have to use them for a pro rata amount of time.
3. It can be self -financing
The bookkeeping function does not involve just keeping your accounts up to date. Good bookkeeping services in London will also have a major input when it comes to improving your cashflow since they will also be actively involved in disciplined credit control.
Not only should your customers start paying you more quickly saving you interest or even earning you some but you should also find that you are in a position to pay your own creditors more quickly avoiding interest penalties and enabling you to take advantage of prompt payment discounts.
In many cases, the net financial benefits can even exceed the cost of professional bookkeeping services in London.
4. It’s like having a non-executive director at your side
Any entrepreneur will tell you that running your own business can often be quite a lonely affair and it is good to have someone experienced around to share problems with and discuss possible solutions. If you outsource the maintenance of your accounts to properly qualified bookkeeping services in London, the chances are that they will be allied to a large firm of chartered accountants. Between them, they will have long and widespread experience of numerous other smaller businesses just like yours.
As your business evolves, expert providers of bookkeeping services in London will be able to identify threats, opportunities and solutions that they have already seen elsewhere and, where appropriate, help to you prosper further by introducing you to the right people amongst their wide spread of contacts.
5. Avoiding problems with the Taxman
Finally, it goes without saying that accounts and tax returns which are professionally prepared by qualified bookkeeping services in London are far less likely to attract the unwanted attention of the taxman. Data that is consistently inaccurate and filed late is a surefire route to potential problems with HMRC and unnecessary sleepless nights. Timely and reliable figures will not only help you compare progress with your own business plan but will also impress your bank and any external investors.
If you are considering outsourcing bookkeeping services in London, please give HW Fisher a call for a preliminary discussion without any obligation.