It’s not uncommon for owners of businesses both large and small to see their bookkeepers as just bean counters who tot up figures and file in reports to the accountants. But often bookkeepers can provide you with a wealth of information and assistance in key areas of your business. In fact people who work in bookkeeping services in London say that thanks to modern computer software they can produce any piece of data you may require and help you put that data to good use.
Here are five areas of your business that bookkeepers can help you with.
1. What’s Your Cash Flow Like? Understanding cash flow is vital to the survival of your business. You could be bringing in plenty of business, but if your cash flow is adverse then this growth can actually damage you if for example your main overhead is monthly rent and wages, but your clients pay after 30 days. Your bookkeeper will have a real grasp of your current cash flow situation and be able to advise you on how to improve it if needed.
2. Are You Making A Profit? Your company needs to make a profit, it is after all the main aim of businesses around the world. So you need to know if you are making a profit, how much and if you aren’t then what you can do to remedy the situation. Your bookkeeper will be able to provide you with all the necessary information.
3. Are You Owed Money? Unless you’re running a cash business where you are paid for your services upfront then having a handle on your debtors is absolutely of prime importance. Your bookkeeper should be able to provide you with a list of debtors classified on age: 30 days, 60 days, 90 days and even older. You might be quite surprised when you see the list. All that money should be in your account and the longer you let these payments slide the worse your situation will be. If you don’t have the time to chase payments in then hire someone to do it, even if it’s only a few days a month because in the end the outlay will repay itself many times over.
4. Are You Overpaying On Tax? It’s only right that companies pay the tax they should. But providers of bookkeeping services in London know that many businesses aren’t taking advantage of perfectly legitimate tax breaks even when they’re entitled to them. A good bookkeeper will be able to help you find ways to legally reduce your tax bill and help improve the financial outlook of your company.
5. Is Everything Ship Shape? If you’ve done your homework then you should have a business plan and budget drawn up for at least the next two to three years. But having a plan, adhering to it and making adjustments based on the reality of the situation are very different things. It’s just a simple fact that management accounts are complex and can be difficult for the layman to decipher. Your bookkeeper will be able to monitor the situation and highlight areas of concern long before they become unfixable problems.
If you’re looking for bookkeeping services in London then please visit this page and find out how HW Fisher can help your business: http://www.hwfisher.co.uk/accounting-outsourcing-services/bookkeeping.