Frequently Asked Questions
We get asked a lot of the same questions when we meet with clients so we’ve listed some of them below for you. If you have other questions that aren’t answered below then please do get in touch.
Q. What do bookkeepers do?
A. Bookkeepers are responsible for recording, organising and maintaining a business’s financial transactions and play a crucial role in keeping up-to-date and accurate financial records. Bookkeepers provide the financial foundation for a business, allowing business owners to make informed decisions, focus on other aspects of their business and be compliant with financial regulations.
Q. I have an accountant, why do I need a bookkeeper?
A. While an accountant plays a crucial role in managing your finances, a bookkeeper can be equally important. An accountant interprets financial data, provides tax advice and can help you make informed business decisions. A bookkeeper is the financial record-keeper who handles the day to day tasks of recording financial transactions, ensuring accuracy and providing you with up to date financial information.
Q. Why does it matter if my finances aren’t in order?
A. Financial oversights or errors can prove costly and time consuming. Inaccurate records can lead to underpayment or overpayment of taxes resulting in penalties and interest, cash flow problems, poorly informed business decision making and sometimes even legal issues.
Q. What are the advantages of having a bookkeeper?
A. A bookkeeper can significantly contribute to the smooth running of a business in a number of ways, such as handling time-consuming tasks such as data-entry, record keeping and financial reporting, freeing up more of your time to focus on business activities. Bookkeepers will stay updated on financial regulations and information, helping your business to remain compliant and offering valuable financial insights.
Q. Why do I need a bookkeeper when I can do it myself?
A. Of course you can do it yourself, but time is money and bookkeeping can be time consuming, especially as your business grows. Using a bookkeeper will free up your time to grow the business, focus on other business activities, or even just give you time to relax. We know how stressful running a business can be. In addition, bookkeepers are trained professionals and will produce accurate and compliant financial records, reducing the risk of errors and problems, giving you peace of mind and reducing stress.
Q. Can you help me with Quickbooks?
A. Yes we can. We’re your local experts in Quickbooks and Xero and use both software packages for the majority of our clients. We can help you get setup and migrate all your data over or if you’re already using them, we can help you get the most out of them. We’re familiar with many other software packages too, both standard and bespoke, but our true expertise lies in Xero and Quickbooks.
Q. Doesn’t a bookkeeper cost too much?
A. That is a valid concern and cost is definitely something to consider but if you weigh up the cost against potential benefits then things should become clearer. When thinking about this question it’s worth considering the following:
The cost of errors - mistakes in bookkeeping can lead to significant financial penalties, such as tax fines and late payment fees.
The value of your time - consider how much your time is worth. Is it better spent growing the business or handling bookkeeping tasks?
Potential revenue loss - accurate bookkeeping can help identify areas for improvement and increase revenue.
Q. Do you work with neurodiverse clients?
A. We do. In fact we’re currently trying to improve our learning to better support neurodiverse clients. At the moment we offer various methods of communication, for example, if you prefer communicating via email or text then that is fine, for face-to-face meetings we can meet in a safe and comfortable space of your choosing. We’re flexible with most aspects of our business to be able to accommodate different needs.
We welcome any suggestions of other accommodations we can make to improve our support for neurodiverse clients.
Q. What accounting software should I use?
A. This really depends on a number of factors, such as the size of your business, the number of transactions, what you want to get out of the software and more. Most modern accounting software has various packages too, depending on your needs so it’s a good idea to sit down and go through what you want to get out of the software. We can then help you find the the software and package that is right for you. We mostly work with Xero and Quickbooks, but have experience in others as well as some bespoke packages for specific industries.
Q. Can I put my morning coffee through the business?
A. In short, no. Food and drink that you consume on a daily basis is not tax deductible as it is not “wholly and exclusively” for business. The only way that you could claim back a morning coffee would be if you had a business meeting or course in another city and had to buy breakfast while you were there. HMRC consider this to be ok as you would not be in that other city were it not for work purposes.
Q. Do you just take clients in East London?
A. No, we take clients from anywhere. The majority of our clients are in East London as that is where we are based and we get most clients by word-of-mouth, but with modern technology we can easily work with clients from anywhere in the world, providing a bookkeeping service that’s every bit as comprehensive as if for a local client.
Q. I want to do my own bookkeeping but don’t know where to start, can you help me get going?
A. Yes we can. Some people are more comfortable handling the finances themselves and we can understand that. We’d be happy to help you get going, we can help set you up on the appropriate software for you, migrate your records to the new system and provide some training on how to handle the day to day transactions. We would stress that a bookkeeper is trained to ensure compliancy, stay on top of changes to financial regulations and provide insights into the financial data so are a useful resource for the more complicated side of business finances.
Q. I use Quickbooks, so do I need a bookkeeper too?
That depends. While it’s perfectly possible for anyone to enter their financial transactions into accounting software, it’s important to have a good understanding of that software and bookkeeping practices so that it’s done correctly. Software can’t catch all mistakes or offer quality personalised suggestions (yet). This is where a bookkeeper comes in as they can ensure your financial transactions are accurate, your tax liabilities are up to date and they can manage cash flow, costs and so much more and keep you informed if anything changes, whether that’s in your business or the financial world as a whole.
Q. I need a bookkeeper for maternity cover, can you help?
Yes we can, we’re providing maternity cover for a few clients at the moment and are happy to step in and help if your business needs cover.