Anyone starting a business is going to have high hopes for its expansion and success. It’s easier at the outset when you can keep an eye on all aspects of the business yourself, such as sales and marketing, production, business rates – but once the business is up and running and hopefully doing well it becomes much more difficult to set aside time to ensure your accounts are kept up to date. Losing track of cash flow is the first step towards disorganisation, which can seriously hinder a business’s growth.
It’s at this stage that many business owners decide they need some help. Bookkeeping, which can be a time-consuming and perplexing job, is often the first thing on the list. However, taking on a person to manage a task you aren’t familiar with yourself can be a leap of faith. So, what sort of questions should you run by a potential bookkeeper? Here are our top six suggestions:
Will you be able to automate my bookkeeping through the use of suitable software?
Using bookkeeping software is a must in today’s business world. HMRC requires the maintenance of digital records in order to comply with MTD – Making Tax Digital – which will automate the entire tax system. MTD is intended to create a more straightforward process to handling tax affairs, reducing the likelihood of errors which cost HMRC billions of pounds. Bookkeeping software gives you instant access to cash flow, will keep all your invoices and receipts in one place, connect with your bank account, allow employees to submit expenses and assist in preparing your tax return, among other benefits. A good bookkeeper should be familiar with several different types of software in case your bank or accountant prefers a specific one.
Will you work with my accountant to ensure transactions are recorded in a way which suits my business and financial planning?
A bookkeeper should be familiar with working alongside accountants in order to log all financial dealings in the most efficient way for tax planning and the filing of annual accounts. Bookkeepers need to be team players!
Do you have access to VAT or tax experts to assist with more complicated transactions?
If you’re registered for VAT or have regular dealings with overseas customers, tax issues may become more complex. A bookkeeper who can draw immediately on this kind of expertise will keep your business one step ahead.
Are you familiar with my business sector?
Your bookkeeper may not be knowledgeable about the ins and outs of the production of torque wrenches, but if they have experience working with companies in manufacturing that will give them a useful perspective and understanding of the challenges in that industry.
Will you set up processes which will add value to my business?
There’s no point taking on a bookkeeper if it’s not going to help progress your business. The best bookkeepers will genuinely enjoy becoming a part of your team, learning about your organisation and ambitions and coming up with solutions and processes which will enhance and add value to the way you work. Whether streamlining your invoicing or tightening up cash flow regulation, you’ll soon notice an improvement.
I need a bookkeeper I can call on at any time. Can you guarantee this?
If a bookkeeper is a sole trader, it can mean that during their well-deserved holidays you are left without cover. Frustratingly, this frequently seems to be when you need advice the most! If you employ a bookkeeper who is part of a team, you’ll always have someone there to help with urgent queries, even when your regular contact is on leave.
If you can find a bookkeeper who can answer all these questions to your satisfaction, snap them up!
At AMR Bookkeeping Solutions we would add the very important proviso that your bookkeeper should be friendly and approachable. We know it’s a big decision to outsource your bookkeeping, but our clients often tell us they wish they’d made that commitment earlier. Why not find out if we could help your business to thrive? Call our friendly team on 01892 559480 or get in touch through our website.
