The coronavirus pandemic is one that could not have been predicted or planned for and its ramifications are being felt throughout the business world. There is a tremendous amount of uncertainty with many people already feeling the financial implications with some losing their jobs and others on reduced incomes. Some businesses are being hit harder than others although on the other side of the coin, there are some real winners in terms of business. Those who are feeling the pinch financially are already tightening the purse strings and looking at ways in which costs can be cut and money saved. In the latest article from Caroline Streatfield Bookkeeping based in Eastbourne in East Sussex, we look at whether you could reduce your overheads by using a bookkeeper rather than an accountant.
What do the terms bookkeeper and accountant mean?
Bookkeeping has traditionally been viewed as the first part of the accounting process involving the efficient running of finances including recording and organising of data. Monies coming into and out of a business are accurately tracked and the day-to-day cash flow is managed. Bookkeepers can also prepare for year-end tax returns and file them. Accountants are able to carry out audits and sit down with business owners to forecast future business needs.
The line between bookkeeping and accountancy is diminishing
Many people are unsure as to whether they need a bookkeeper, an accountant or both and are actually not clear about the differences between the 2 roles. It’s true that the work involved in bookkeeping and accountancy has always overlapped and today it can be said that the line between the two is slowly diminishing. With the advent of accounting and bookkeeping software, some parts of accounting are being slowly absorbed into the bookkeeping process. Bookkeeping software can now generate financial statements, which used to be an exclusive part of accountancy.
Does your business need a bookkeeper or an accountant or both?
Using a bookkeeper could be more cost effective and like accountants, they can provide tax advice. Whether you require a bookkeeper or an accountant is very dependent on the level of service that your business requires. Both an accountant and a bookkeeper can help you manage your day to day finances as they can monitor cash flow from different accounts, can deal with bills and invoices and organise your books for better management. Accountants are more expensive but are not involved in everyday bookkeeping.
How Caroline Streatfield Bookkeeping could help your business
Caroline Streatfield Bookkeeping works with all businesses including sole and limited companies with CSB doing the bookkeeping for the majority of the latter with an accountant doing the year-end filing. A growing trend is for more limited companies, perhaps with limited transactions, to have their annual accounts prepared by a bookkeeper. CSB is also fully trained in preparing the accounts for micro-entities, smaller companies, which often need a simpler set of year-end accounts.
Contacting Caroline Streatfield Bookkeeping
If you are looking to reduce your overheads, why not talk to the experts at Caroline Streatfield Bookkeeping as you may be using an accountant when you actually only need a bookkeeper? We keep in touch with our clients, have local connections, and you would have one point of contact. CSB can prepare self-assessments, small limited company accounts and can do the payroll for you. Caroline is fully qualified and undertakes regular training to keep up to date with HMRC changes. The company complies with data protection and money laundering policies. For more information, call Caroline on 07982 682746 or email info@bookkeepereastbourne.co.uk
