Why You Should Employ A Good Bookkeeper
Last time I said that you should always make sure that you get an Aged Debtors’ and Aged Creditors’ report, if you didn’t see that article or are still not sure why, then do get in contact. But these aren’t the only reports that you should expect from your bookkeeper. At Rosemary Bookkeeping, we think you need a Profit and Loss report to understand your income and your costs. If your bookkeeper only gives you a P&L with one line for income and yet thirty lines for costs, then you need speak to them. That’s just not good enough – you need to understand where your income is coming from and which areas of your business are the most profitable.
We came across a motor mechanic’s business that specialised in crash repairs, new tyres and MOT’s. Originally the owner had been the apprentice but after years in the business had bought out the previous owner. Because there were no details explaining the income in his accounts, the owner had no idea how much to charge new customers – he resorted to ringing up his competitors to find out how much they would charge – not the best method of pricing! Rosemary bookkeepers take the time to understand how you need to analyse your income and costs and you should expect the same care from your bookkeeper.
We think that you should make sure that your bookkeeper is regularly reconciling your business bank account – this may sound like jargon, but it just means they are checking everything that has gone through the bank account is also reflected in the accounts. That’s important if you are on the cash accounting VAT scheme but is also allows you to have confidence that the reports you receive have the most up to date information. Check that your bookkeeper has reconciled your business bank account and ask them to explain anything that is still outstanding.
If you are VAT registered you should expect your bookkeeper to do your VAT return accurately and on time. If you are responsible for signing off the VAT return, then it will be your head on the proverbial block if the lovely people from HMRC turn up to check your paperwork. You may have seen in the press that HMRC are doing regular investigations and fining companies that are not doing their bookkeeping properly. Make sure you are confident that your bookkeeper knows when you can and cannot claim VAT. It’s too important to just assume they are doing it right. Check.
Are there any other reports that you should expect on a regular basis? Absolutely – you should definitely look at your Balance Sheet periodically, especially if you are looking to sell your business. At Rosemary Bookkeeping, we want you to have information that helps inform your decisions –we believe that bookkeepers shouldn’t give advice or do tax returns – that’s what accountants are great at and are trained to do. Rosemary bookkeepers are proud to intelligently process your paperwork and are on your side. Ask me to for free bookkeeping health check – I’d love to make sure you are getting the best from your bookkeeper or call for a chat if you are interested in finding out more.
We hope you have enjoyed the series of bookkeeping advice blogs from Rosemary Bookkeeping, to find out more about becoming a Rosemary Bookkeeping Franchisee please click here