What are the key differences and which do you need for your business
Business owners normally realise that they require some sort of financial assistance and support when either; the kitchen table is no longer visible due to receipts, invoices and paperwork (!) OR they are receiving demands for payment or information from government agencies such as Companies House or HM Revenue and Customs.
A bookkeeper will help to process all of your business paperwork, they will; input all of your invoices and receipts, reconcile your bank account(s) (a financial term for accounting for all of your bank incomings and outgoings) and organise your paperwork in an acceptable way.
They will record, administer and organise your business paperwork very effectively, IF, you choose a really good one.
A really important point to mention here is that very often, even if your bookkeeper has done a fantastic job, there is a very high chance that you will still require an accountant at this point.
An accountant will take the information that has been completed by a bookkeeper and take it to “the next level” by preparing your; business accounts or financial statements, business and personal tax calculations (ensuring that you are minimising your tax liability as much as is legally possible).
A great accountant can be worth their “weight in gold” to business and company owners, in addition to ensuring that all of the businesses statutory returns (mentioned above) have been submitted and completed, they will help you to grow and develop your business, by assisting with some of the following;
- Getting your business access to finance and funding to enable you to purchase machinery and equipment for your business.
- Helping business owners and directors obtain personal mortgages for themselves.
- Dealing with enquiries, questions and investigations from HM Revenue & Customs.
- Be a “sounding board” or “business buddy” who listens to your ambitions and ideas and gives honest opinions and feedback in return.
- Monitoring your cash flow to help ensure that your business doesn’t run out of funds.
And much, much more.
To put it bluntly…..be under no illusion; bookkeepers and accountants are NOT the same, they can work together, very well for the benefit of your business, but, they will not do the same job for you and your business.
Most business owners don’t engage with an accountants early enough due to three common reasons;
- Business owners are worried about how much an accountant will charge them.
- Business owners attempt to do their own bookkeeping and accounts, which is difficult and also takes a huge amount of time.
- Business owners are worried, or scared about meeting with an accountant in case they are made to feel silly or stupid.
As a result of the above, any many other reasons, a great deal of business owners only engage with an accountant when it’s too late, when something has gone wrong – a good comparison might be; only visiting the dentist when you know your tooth has already decayed away (!) – The damage has been done, and it’s going to be expensive to fix!
When looking for an accountant, try not to think about accountancy fees as an overhead or cost – but actually as an investment, as a really good accountant will save you a lot more money in tax, interest, penalties and fines that they charge in accountancy fees.
FD ANALYTICAL – YOUR PROFESSIONAL, FRIENDLY & APPROACHABLE ACCOUNTANTS.
At FD Analytical all of our fees are discussed and agreed in advance with our clients AND clients have the choice as to whether they pay their fees monthly or in one “lump sum” at the end of each year.
We support a large number of small and medium sized business and have done so over a period of almost 16 years, as a result there aren’t too many situations that we haven’t encountered – so, no matter how bad , late or serious your position is, we can help you to fix it.
We’re a really friendly, approachable firm of accountants, we guarantee that you will be welcomed into our offices with a coffee (and even a biscuit on a good day!) and you will most definitely not be made to feel silly, incompetent or stupid – that’s just not how we are.