All small business owners and start-ups have to develop a wide range of skills to ensure their business is a success, aside from being the expert in what they do. As well as keeping your customers and workforce happy, there are lots of other processes and procedures you need to be familiar with.
Bookkeeping is one of those processes, but if you have never done it before it can all seem a bit alien. If you have questions about small business bookkeeping, you can find answers to some of the most common queries below.
Do I Need a Bookkeeper or an Accountant?
Accountants and bookkeepers may look as if they fulfil the same role from a distance, and you may even find one person taking on both roles. However, there are some key differences which may affect who you choose to take on the task.
In basic terms, bookkeeping keeps the financial records of a business. Your bookkeeper stores and records financial transactions, so they will be closely linked to the finance team if they work in-house or will meet or talk to the business often if they provide an outsourced service.
An accountant looks at the financial information for the whole business, including cash flow and financial positioning. The information an accountant provides can help you make decisions about future investments, loans or what direction the business should take.
Bookkeeping and accounting are both services which are often outsourced, and at Purple Lime, we can offer both services jointly and separately to a business.
What is the Best Bookkeeping Software?
There are lots of things to consider before deciding which is the right bookkeeping software for you. You will need to take into account price, features, ease of use, whether you can store information in the cloud and how well it integrates with other apps and professional services you use.
Here at Purple Lime, we recommend Xero – it is seen as one of the top pieces of accounting and bookkeeping software both within the finance industry and among business owners.
In our experience, it is straightforward to use (especially on a Mac) and ideal if your business is fairly new, or if you like accounting to be straightforward.
Xero is affordable and works with hundreds of other apps, making it easy to bring together information from across your business. If you get stuck, there is even a 24-hour email and live chat service to help you resolve any problems.
Should I Outsource My Bookkeeping and Accounting Now?
In short, yes! The sooner you outsource your bookkeeping and accounting, the sooner you will have more free time to focus on the bit of your business you are best at – focusing on, your customers.
However, if you are still not convinced, this might help you decide if it is the right time to outsource:
- The accounts are not making sense. If it is difficult to see what the numbers mean for your business or you do not understand what your accountant is asking you to do, an outsourced bookkeeper will be able to help you.
- The software is confusing. Whether it is because your needs have outgrown what the software has to offer you, or an update has suddenly changed the way things work, feeling out of control of your financial software is stressful. A bookkeeper can help you use your software more effectively or advise if your business has outgrown it.
- Your business is getting VAT registered. If your business is near the VAT threshold and you have decided to take the next step, it is a good time to get a bookkeeper in. They will help you through the process and make sure the documentation is in order and accurate from the start.
Whenever you choose to make the move to an outsourced bookkeeping service, make sure it is a company you get on with. Your bookkeeper needs to understand your business aims and ambitions, as well as being trustworthy and with exceptional attention to detail. As opposed to a traditional bookkeeper, there are numerous ways for you to get in touch with us, ensuring support is on hand when you need it.
If you have any questions about bookkeeping or accountancy for your small business, please do get in touch. At Purple Lime, we are experienced in financial management, accounting and bookkeeping, so we can look after your business finances, whatever stage you are at.
Whether you are looking for a bookkeeper to keep your accounts up to date or want detailed financial information and advice to take your business to the next level, we are happy to talk.
Email hello@purplelime.uk.com or call 01249 691 360 to speak to one of our team and find out how outsourcing your bookkeeping and accounting could help you. Alternatively, you can arrange a free consultation right now by choosing the option below.