Why Firms Use a Bookkeeper for their Business

If you find that you need help with your business financials, it may be a good idea to consider using a bookkeeper, rather than an accountant. 

An accountant’s function involves looking at the overall financial performance of the business including the completion of financial accounts and tax returns. 

An accountant is someone you should be able to:

  • Trust totally.
  • Expect to be professional in his or her conduct.
  • Must be up to date with the latest changes in business law and taxation.
  • Must be experienced in your type of business so the advice is correct.
  • Must maintain full confidentiality of your business affairs.

A bookkeeper however is basically concerned with keeping the day to day books of the business. 

A bookkeeper does not normally get involved in the completion of tax returns and business financial analysis or drafting of financial accounts. This is generally the domain of the accountant.

There is considerable business software available on the market today able to perform the function bookkeepers used to carry out in the past. Some people feel the software is now very user friendly and easy enough to understand so they use it rather than employing a bookkeeper to update their day to day financial and recording requirements.

While the business is small the owner can usually keep an eye on what is required as far as invoicing, collecting debts and paying bills is concerned.  Many business owners have their partner (their wife etc) looking after this aspect of the business while they conduct the day to day trade or service.

As the business grows, however, it is important to look at hiring outside help. This may involve bringing aboard a bookkeeper who comes in on a weekly basis to keep the business books and systems up to date.  If the bookkeeper specialises in the owner’s type of business, then this is a considerable advantage as the owner can be confident that the bookkeeper will contribute to the success of his or her type of business.

The bookkeeper is a good option when help is needed because the business owner’s time is generally too valuable to spend on the day to day bookwork. 

As the bookkeeper is a specialist he or she will take less time to complete the necessary work.  Even though there is a cost involved, the savings to the business owner, as far as time and headaches is concerned, will far outweigh the expense of that type of service.

A small business can hire a bookkeeper on a part time basis. When the business grows to a stage where more assistance is required a full time bookkeeper can then be employed to look after the basic financial requirements of the business.

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