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When you think of bookkeeping, what comes to mind? For many people, the first thing that comes to mind is data entry – and while this is a part of bookkeeping, it's certainly not all there is to it. Bookkeeping is an important task for any business, and it requires expertise and understanding in order to be done correctly. A bookkeeper not only needs to be able to enter numbers accurately, but also needs to be able to understand what those numbers represent and how they impact the business as a whole.
The phrase data entry means that the task is simple and not much thought needs to go into it as it’s just entering numbers. It’s an easy straightforward task which is monotonous and anyone can do it, unlike a bookkeeper who is highly qualified and an expert at interpreting the data.
Knowledge and Expertise
Bookkeeping is a qualified profession which is recognised by an accrediting body such as AAT for example. A bookkeeper should ideally be registered and have a license in order to access your finances. They will have a wealth of knowledge that they have built over their years working in practice. A bookkeeper will be able to advise you on anything from tax to VAT and any legislation that is applicable to your business.
Not only will a bookkeeper monitor your transactions but they will be able to produce insightful reports in order to support you in your business growth.
Accuracy
It’s important that your bookkeeper has attention to detail and the information they produce is accurate in order to give you a true understanding of your finances and to ensure that you are reporting the right information back to HMRC.
If you choose to do your bookkeeping without hiring a professional, simple errors can occur, which will cost more time and effort in the long run to resolve. Bookkeeping is more than just numbers, it enables you to have an overall picture of the business. By examining the smaller details which may involve going back months or years to ensure everything is correct it will give you a better understanding of the direction your business is heading.
Growth
As we have already touched upon, a bookkeeper can not only ensure that your accounts are in order and up to date, but they can help you to set realistic, achievable goals for your business. They can support you to plan ahead and put steps in place in order to move in the right direction to smash those goals! It’s crucial that your cash flow is healthy in order for your business to be successful and they will be able to advise ways of keeping that cash flow nice and healthy.
Bookkeeping isn’t just data entry. It’s the driving force behind any successful business.
If you are considering hiring a bookkeeper then please book a call!
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