You’ve made a business out of doing something you love and now you’re playing catch up with your books every month. It’s stressful and annoying. Your focus is probably on delivering your service and that totally makes sense. Your service is what gives you the numbers! It’s a sort of awesome/terrible Catch-22 rolled into one. Quite often this dislike for bookkeeping is due to companies lacking (or ignoring) key pieces of bookkeeping advice given to them.
The thing is, we feel a bit sorry for little old bookkeeping. It’s often undervalued and seen as the bothersome task that just needs to be done. That means that it’s going to be left to the last minute and any task that’s left to the last minute is stressful. Here’s some of the main reasons why bookkeeping drops to the bottom of the to-do list (maybe you’ll find yourself in there somewhere).
Why bookkeeping might not be on your “must do” list
Lots of spinning plates
There’s lots of moving parts in business finances. Receipts, reconciliations, tax categories, salaries, VAT and more. That’s a lot of spinning plates and it can be overwhelming. If you’re focusing on your business then you’re probably waiting for some space in your calendar to deal with your books.
It has to add up, simple as that (and that’s stressful)
If it doesn’t line up, you have to dig deep into your finances to see why and that’s a lot of pressure. You’ll probably get a nice red warning to let you know about it too (if you use accounting software) and it’s maddening. It’s too stressful to deal with so you ignore it.
Tax repercussions
Bookkeeping requires a fully functioning brain and you might not have that at the end of a work day. That can lead to mistakes and if you don’t get it right, you could pay for it. Literally. You know that but you’re waiting for a time where you can focus and really get to grips with it.
Where messy bookkeeping can cause real issues
We know late and/or inaccurate books can cost you a lot of time and money. You can miss allowable expenses, get tax penalties for incorrect data and model your business on wonky forecasts. Messy books are also the most common reason why accountants are delayed in giving the best advice. Accountants work on the data that’s in front of them and if those numbers are inaccurate then the advice will be too (and we hate that, by the way).
Accurate, timely numbers lead to an easier decision making process for business owners. It can also allow your accountant to proactively spot opportunities and threats. It ensures that all the reconciliations go into all of the right pots and that all of those pots lead to the maximum amount of allowable expenses. Most importantly, good bookkeeping means things are done earlier. To have space and clarity at the end of the month is a really good feeling.
If you see yourself in any of the above then it might make you feel better to know you’re not alone. So many people are in the same boat and we totally get it. That’s why we have a bookkeeping along with our accounting services.
And if you don’t know how they differ, then read our blog on the difference between accounting and bookkeeping.
Bookkeeping is our jam
Bookkeeping advice is woven into the foundation of so much of what we do here at Raedan. We believe it’s the most important part of any business and when it’s managed right, it leaves so much space for the things you’d rather spend your time doing. Our bookkeeping service makes sure your books are in tip-top shape. Here’s what’s included:
Our bookkeeping service
- Daily processing of paperwork in DEXT
- Bank matching in Xero
- Checking and correcting allocations
- Tracking items by project
- Maximisation of allowable expenses for tax (woo hoo!)
- Correct VAT treatment
- Weekly reports sent to you
- A monthly review
- Reconciliation of key accounts like PAYE
We’ve made sure to incorporate all of those spinning plates into a lovely package, so that all you need to do is one thing: give the information to us. We’ve also made sure to include good communication so that you know everything is squared away, as it should be, every month.
If you are wonder how to do bookkeeping and would like more bookkeeping advice, or want to find out how this service can strengthen and support your business, get in touch with us here.
