Bookkeepers Ilford Essex (IG1): To comply with the 2006 Companies Act, if you are a sole trader, operate a small business or run an online store in Ilford, you're responsible for keeping "true and fair", accurate accounting and financial records for at least six years. You could face disqualification as a Company Director and get a fine of thousands of pounds, if you are unable to produce these records. It can pay to use a professional accountant or bookkeeping service to conduct this for you, because according to Accounting Today over forty percent of small businesses spend over 80 hours per year on their accounts, which is a large investment of time, and may be better spent on your primary business activities.
If you're filled with panic simply thinking about preparing profit, loss and financial statements, filling out ledgers, tracking assets and liabilities or producing balance sheets, then the time to get in touch with a bookkeeper in Ilford for advice has arrived.
BOOKKEEPER OR ACCOUNTANT?
For many small business owners in Ilford, the first question that springs to mind when faced with this dilemma is "Precisely what is the difference between an accountant and a bookkeeper?" In the old days it was typically deemed to be beneath the skill-sets, experience and qualifications of an accountant to do the work of a bookkeper, however because of software developments over the past decade or so, many bookkeeping duties will now be undertaken by accountancy firms in the Ilford area. To make sure their bookkeeping services are consistent with a dedicated bookkeeper's fee, it is now common practice for many accountancy firms to charge a set fee for such services. This means that the cost of bookkeeping is much more affordable than it previously was, and is good news for small businesses in Ilford as it gives a wider variety of competition within the marketplace.
When you're considering the differences between an accountant and a bookkeeper, the main one is the standard of qualification and training that's necessary for each discipline. Usually holding an accounting degree, a professional accountant should also have had training in tax preparation and further qualifications in fiscal and business management. Whilst possibly not having this level of training and experience, or holding the same financial qualifications, a bookkeeper in Ilford will still have a decent understanding of all such procedures.
RESPONSIBILITIES OF A BOOKKEEPER IN ILFORD
In the simplest of terms, the bookkeeping process involves the recording of day to day transactions (financial) of any business or enterprise in Ilford. This can include, but is not limited to;
- Ensuring accounting and double-entry bookkeeping practices are followed.
- Documenting of all financial incomings; including electronic, card and cash payments.
- VAT submissions and recording.
- Highlighting and rectifying any discrepancies in financial accounts.
- Monthly reconciliation and reporting.
- Recording the receipt of invoices and making certain payment is completed punctually.
- The billing of customers for goods or work completed.
- Payroll services.
Based upon the level of service you require, a professional bookkeeper may just be needed to double check your figures every so often, if you're prepared to do the larger part of your own bookkeeping work. To allow for any mistakes or problems to be identified and amended quickly, this should really be done monthly at the bare minimum. Providing you are confident of staying in control of your financial transactions without compromising your everyday business operations, this trade-off can be the most cost-effective solution.
Whatever your current situation is, if you are seriously thinking of hiring a bookkeeping service there's a fair chance that you may be getting stressed about the financial recording side of your small business in Ilford. A professional bookkeeper will be able to assist you in linking your accounts with the most up-to-date software to facilitate the seamless pull-through of financial data, and will provide assistance with things like stocktaking, invoicing and preparing expense reports.
An especially crucial aspect of good bookkeeping is being able to reconcile cash flow with accounts payable. Which means that your bookkeeper will arrange bill payments to a time when your accounts are in the best possible position, instead of paying an outstanding bill immediately, or waiting for an overdue notice, which a lot of small businesses are guilty of at some time or other. This not only keeps your business or enterprise financially secure, but keeps you in the good books of suppliers and those people who provide you with services. Regrettably, this is one of those balancing acts that can be tricky to perform when you are completely focussed on the smooth running of your everyday business activities.
If you are a sole trader, or operate a small business, employing a certified bookkeeper in Ilford, also gives them an opportunity to cast a fresh eye over the financial dealings of your business. Business trends and patterns that you might have disregarded might be highlighted by this type of objective assessment. A situation where a keen eyed bookkeeper flags an area which is dropping in profits, or spots a new opportunity that could prove worthwhile, is not at all an uncommon occurrence. Spotting such KPI's (key performance indicators) is vital for the success of any enterprise in Ilford.
If you send out invoices in your business operations, needing to chase up a late payment can be quite uncomfortable. Having a person from outside your business bubble, can take away the awkwardness of visiting your customer or making that telephone call. If you've got problems with a consistent late payer there are legal methods a professional bookkeeper can employ to help to clear up the issue before the situation ends up in a claims court.
SOLE TRADER'S BOOKKEEPING REQUIREMENTS
The requirements for bookkeeping by a sole trader, as set out in law, are relatively uncomplicated and easily understood. A sole trader is required to keep track of income and expenditure on a monthly basis and save all invoices and receipts. It's still recommended to hire the expert services of a bookkeeper, even though this might sound easy. So that you will be able to claim back any bonafide business expenses from HMRC, a specialist sole trader bookkeeper in Ilford will be able to advise you on what must be done. This may include consumables, rent and bills if working from home, stationery, promotional advertising and items such as computing equipment. Speak to a trusted bookkeeper for more in-depth advice and learn how they might help your small business to prosper and grow.
ONLINE TRADERS
Some business enterprises that work in niche markets, might need to employ a specialised bookkeeper. You'll need a bookkeeper in Ilford who's familiar with multi-currency processing, cross-border and international taxes, exchange rate transfers and online payments, if you manage a store online for example. If you hold or produce the goods that you distribute through that shop, then it will be a massive priority for your bookkeeping software or services to monitor your your inventory on a 24 hours a day basis, since the internet never sleeps.
In combination with bookkeeping service, it is also possible to supply a remote virtual office. This allows a sole trader or online only business to have a postal address and telephone service to provide a physical link with their customers. Not all Ilford bookkeeping businesses will provide this option, but it's worth discussing if it is required.
PROFESSIONAL QUALIFICATIONS AND AFFILIATIONS
A lot of the bookkeeping qualifications are at Diploma or Certificate level, and it's not mandatory for a qualified bookkeeper in Ilford to have an accounting degree. Although there are a variety of courses available online, bookkeeping qualifications can still be obtained via further education colleges and universities, if that's the chosen route.
There are two key training and certification organisations representing bookkeepers:
The AAT (Association of Accounting Technicians): Entitled to use the letters AATQB after their name, a fully trained member of the Association of Accounting Technicians (AAT) will have undergone a training schedule and advanced qualifications in bookkeeping. They are then able to become approved AAT bookkeepers, which assures their clients a decent standard of service which is backed up by the association. To preserve the trustworthiness of AAT membership, an AAT bookkeeper can be liable to tribunal and disciplinary procedures if they have a complaint filed against them or are found to have breached the code of practice.
The Institute of Certified Bookkeepers (ICB): Offering accreditation to bookkeepers, in addition to reference material and training to keep their associated members current with the latest trends, the Institute of Certified Bookkeepers (ICB) is the largest organisation of its kind in the world.
By going to their websites, it is possible to confirm the qualifications of any bookkeeper on the register of AAT or ICB members. Before you employ any professional bookkeeper in Ilford it is a good idea to implement this check.
Cash Flow Analysis
Businesses cannot gauge their financial health without utilising cash flow analysis, which is an essential tool. Bookkeepers play a critical role in performing cash flow analysis for businesses. The task involves keeping tabs on the amount of cash entering and leaving the business within a set period of time, generally monthly or quarterly. The bookkeeper's task is to assist the businessperson in comprehending their current financial condition, detecting any cash flow issues, and planning for the future.
The bookkeeper categorizes and reconciles all cash transactions, such as sales, expenses and investments, to provide a clear image of the company's financial condition. It can also involve forecasting cash flow for the coming months or years to help the business make informed decisions and avoid cash flow problems in the future.
Any company that desires to manage their finances effectively must have a complete and accurate cash flow analysis as a crucial tool.
Bookkeepers Near Ilford
Also find: Loxford bookkeepers, Collier Row bookkeepers, Gants Hill bookkeepers, Chase Cross bookkeepers, Becontree bookkeepers, Seven Kings bookkeepers, Rigg Park bookkeepers, Redbridge bookkeepers, Bromley by Bow bookkeepers, Little Heath bookkeepers, Goodmayes bookkeepers and more. Near to practically all of these locations, there are individuals offering bookkeeping services. This accessibility ensures that businesses and individuals alike can easily find the financial support they need to effectively manage their accounts. Clicking here allows area residents and businesses to receive bookkeeping quotations.
Ilford Bookkeeper Tasks
Most Ilford bookkeepers will be willing to offer you the following accounting and bookkeeping services: independent bookkeeping services, cash books, VAT returns, Self-Assessment tax returns, bookkeeping for clubs, payment services, bookkeeping for pubs in Ilford, off-site bookkeeping, maintaining fixed asset registers Ilford, bookkeeping price quotes, bookkeeping for payroll Ilford, bookkeeping services for sole traders Ilford, invoice processing in Ilford, assistance with registering for self-employment in Ilford, bookkeeping services, bookkeeping for startups, accounting and bookkeeping services, accounting and bookkeeping Ilford, financial statement preparation, landlord bookkeeping, Sage bookkeeping services Ilford, letting agent bookkeeping, bookkeeping services for tradesmen Ilford, credit control, Quickbook bookkeeping services Ilford, mobile bookkeeping services, partnership tax returns, bookkeeping for retail outlets, tax returns Ilford, accountancy packages, and more. Listed are just a selection of the duties that are conducted by local bookkeepers. Ilford companies will let you know their whole range of services. If there are different Ilford bookkeeper requirements that you want but don't see here, you can easily list them on the QUOTE FORM provided. We'll be in touch with details just as soon as we are able.
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