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Why every business needs bookkeeping?

Although bookkeeping doesn't contribute directly to profits it is a necessary evil which every business owner must face in managing their business. There are several good reasons for maintaining a good bookkeeping system:

1. Monitoring the success or failure of your business. It's hard to know how your business is doing without a clear financial picture. Am I making money? Are sales increasing? Are expenditures increasing faster than sales?

2. Determining if your company is progressing or not. If you keep good records, you will be able to compare your performance in various years and make plans for improvements.

3. Determining which times of the year business is slower or faster. This will help you determine when you can afford to make any large purchases or when you need to order more or less.

4. Obtaining bank financing. A banker will usually want to see financial statements for the most current and prior years, as well as your projected statements showing the impact of the requested loan. A banker may even want to see some of your bookkeeping procedures and documents to verify whether you run your business in a sound, professional manner.

5. Complying with payroll tax rules. PAYE payments must be made according to strict deadlines. Then at the end of the year, you are required to prepare payroll returns. Sound bookkeeping practices will make compliance with payroll rules easy. Poor records will make it impossible.

6. Completing VAT Returns. If you are VAT registered, good records will make it easy for you to compute the tax due and complete the required returns. Good records will also help you avoid penalties for late registration and late returns.

7. Distributing profits. If your business is a partnership, you will need good records to determine the correct amount of profits to distribute to each partner. If you are operating as a company, you must determine the company profits that you will be paying out as dividends

8. Completing tax returns. You will want to make sure you are able to track all your company’s deductions so that you do not end up paying more taxes than you absolutely have to. Also, having well organized records for your accountant makes his/her job quicker, thus saving you money.

9. Should your company ever be audited, you will need to provide your financial records in order to verify all your expenses & income.

10. Should you ever decide to sell your business, you will need accurate financial records to show potential buyers.

  
 
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Services:

Bookkeeping:

Did you go into business to spend hours doing financial chores?  We did!!! 

Regular recording of your company's financial transactions is at the foundation of our bookkeeping service. We can advise you on how to maintain effective records or you can send us all your financial paperwork. For small companies we help directors comply with The Companies Act requirement for directors to maintain proper books of account in order that these records can disclose, with reasonable accuracy, the financial position of the business. For sole traders and partnerships we help you comply with HMRC’s requirement for you to maintain records from which your tax liability can be determined. Most importantly we help all businesses keep records that will aid in daily business decisions and provide information to determine how well your business is growing. Remember good bookkeeping records are at the heart of successful businesses of all sizes.

VAT:
If you are a VAT registered UK business we can complete your calculations for VAT returns from your own records or from bookkeeping records we maintain for you. If you are approaching the registration thresholds we can advise on your obligations and assist you in registering with Customs and Excise. Additionally, we can advise on special VAT schemes and methods to minimise your liabilities.
Not only will we compute and complete your quarterly VAT returns, but we will attend all meetings and inspections by Customs and Excise to answer any questions they may have.

Payroll:
As a UK business you have a responsibility to correctly account for PAYE, NI, SSP, SMP etc on all staff you employ. As part of our payroll services we can administer your payroll on your behalf, provide payslips, and advise you of the payments due to the Inland Revenue. We are also experienced in dealing with Contractor’s Certificates for the construction industry.

We produce all payroll end of year returns and as registered agents can file these returns on-line on your behalf.

REMEMBER!
If you file your year-end returns on-line, not only is it quicker and more convenient,
it also saves on paper and, if you have less than 50 employees, you can get up to £825.00 tax-free over the next five years starting in 2004/2005.

Management Accounts:
What sets us apart from other book-keepers is that not only do we complete your bookkeeping, do your VAT and payroll but we also produce management accounts on a monthly or quarterly basis.
Management accounts are the equivalent of the year end accounts but every month i.e. Profit & Loss + Balance Sheet.
We tailor management accounts to specific client’s requirements in terms of the wording, composition and layout. The objective is that our clients both understand and use the accounts to improve their profitability and boost the value of the business.

Benefits of Management Accounts

  • Checks promptly the progress and health of the business by reporting gross margins, net profit and the Balance Sheet
  • Focuses on debtors, hence encouraging better debt collection, less bad debts and improved cash flow which will assist expansion
  • Identifies overheads to allow greater control of costs 
  • Satisfies requirements of external investors for overdrafts and loans
  • Reports gross profit percentages which are often a key performance indicator.
  • A comparison - Period and Year to Date with the same period in the previous year or with budget. This is usually of great benefit in measuring performance