Types Of Organisations That Benefit From Bookkeeping Support

Most bookkeepers will use accounting software as an efficient way to record and manage your financial information. This can save a lot of time when your year-end accounts and self-assessment tax return are due to be completed. 

 

While these services will be similar for all businesses they will vary for different sectors, according to business patterns and the type, volume and speed of transactions you carry out. 

 

With a good idea of the number of transactions involved each month you can plan for regular bookkeeping costs and can normally ask for some extra hours each month and to help complete your year-end accounts and to keep everything running smoothly. 

 

Retail – when you run a shop you might think that doing your own bookkeeping will save you money, but it will take a lot of your time – often outside of opening hours. Having reliable, professional bookkeeping support helps you to keep track of your sales, expenses, bills, income and inventory. 

 

A bookkeeper can put systems in place to track the quantity and cost of your incoming stock, the number of sales and the price of each item. If needed, you can agree processes to make adjustments for spoiled, stolen or damaged goods so your records will give a more accurate picture of your actual inventory. 

 

Your bookkeeper can also compare your records to your bank statements regularly so any discrepancies will be noticed quickly. If you have an electronic point-of-sale (POS) system linked to your accounting system they can carry out regular checks to keep track and to add any other income manually. 

 

You will probably also have a large number of expenses and your bookkeeper will know how to automate recording many regular costs such as rent, loans and lease payments, employee costs, fees, and taxes. They can also keep detailed records of money owed to you, as well as bills to be paid. 

 

Hospitality – margins are still very tight in the hospitality sector, so keeping track of your expenses is essential to identify the things that could affect your profitability. Your bookkeeper can help you to reduce outgoings, increase sales, and create processes to keep your credit management under control. 

 

Keeping your records up to date will also help make sure you identify any bottlenecks in your cashflow so you can take action quickly. Your bookkeeper can help you to manage your working capital so that you can access additional funds when you need them or put together the business case for a loan. 

 

Trades – if your business is growing quickly you will need more time to focus on meeting and quoting for customers and making sure you deliver high quality services. This is often the time when trade-based businesses decide to work with a bookkeeper. 

 

As you take on more projects it becomes even more important to keep track of the products and materials you buy, and your staff and operational costs. A bookkeeper can keep your receipts, invoices and payments up to date so that you can pay all your costs and, most importantly, yourself. With the help of a bookkeeper, you will have the right financial processes in place and you can reduce the administration involved in running your business through automation. 

 

They will help you to be compliant with the requirements of the Construction Industry Scheme (CIS) and to have enough money and the right processes in place for your VAT and other taxes so you will avoid late fees and penalties. 

 

Education – maintaining accurate and transparent financial records is essential in educational settings. Multiple reports are often needed for the Board of Governors, the education authorities and regulators. 

 

An external bookkeeper can help educational organisations stay within budget, pay bills in good time, and keep accurate financial records so that high quality reports can be produced when needed. They can help you keep up to date with purchases, expenses, and revenue in the general ledgers to make sure balance sheets are accurate, including bank reconciliation, accounts receivable, and accounts payable. 

 

Charities and not for profit organisations – for many charities the role of treasurer is challenging. Often relying on unpaid volunteers, keeping financial records up to date can be overwhelming, especially when the priority is to raise funds for essential work. However, charities must meet strict requirements for recording use of funds and must produce an annual report, a set of accounts, and an annual return. 

 

Working with a professional bookkeeper is the most straightforward way to make sure all these requirements are properly met. Accurate bookkeeping using modern software and systems will provide the essential basis for preparing your financial reports. For new charities it can help make sure there are workable and reliable processes in place to ensure compliance. You will also maintain a good understanding of the finances available to support your important work and to make good decisions. 

 

Agriculture – running an agricultural business is a full-time occupation and financial record keeping can be low on the list of priorities. However, the bookkeeping requirements are specialised and there’s a lot of detailed information that needs to be maintained. This can range from VAT records to management reports. 

 

As machinery has become more sophisticated, maintaining the correct information for capital expenditure and financing are increasingly important. Lenders, government agencies, and insurance companies might all want detailed income and expenditure records. Accurate financial information will also show you which activities and methods are most productive. 

 

Landlords – whether you have just one rental property or several, it’s important to keep accurate records of your income and expenditure. It’s good practice to keep separate records for each property, particularly for landlords with larger portfolios. This is the best way to respond to any queries from HM Revenues and Customs (HMRC) and to manage costs associated with accountancy and tax advice. If you decide to sell a property it will also help you to work out the implications for capital gains tax. Having accurate, up-to-date financial records will give you a clear understanding of your income, overheads, allowable expenses, and potential profits. 

 

At Profectus we understand that every organisation’s bookkeeping needs will be unique. We work with you to provide a tailored service that provides useful financial information that will be helpful every day. 

 

Please get in touch to find out more.