When is it cost effective to have someone do my bookkeeping?

Whether you’re a freelancer or business owner, no matter how big or small your business is, we’re all limited on one thing and that is time. As a result, the time you have ready to spend on moving your business forward, you’re going to want to make the most out of. However, you may not be using as much time as you could potentially do. This is because you’re doing tasks yourself that you could be outsourcing to other people to complete on your behalf, such as having a virtual assistant to carry out all of your administrative tasks. Or employing the services of an accountant to get your books in order.

 

Firstly, aside from the costs of employing an accountant. Let’s have a look at how they can save both you and your business money:-

 

  • As we’ve discussed already, they can free up time for you to devote to other areas of your business. The way to look at this as saving you money is how much would you charge for an hour of your time? Take that and multiply it by the number of hours you spend on doing the books yourself each month and you’re going to start seeing a considerable saving.

 

  • They can help you grow your business. Accountants have experience in watching small-time start-up companies flourish into successful businesses and they have had a huge role to play in that expansion. When you’re growing your business, without the help of an accountant, you could end up burning money you don’t need to and setting unrealistic targets could help slow down the growth of your business.

 

  • They keep an eye on your cash flow and also help you with your financial forecasting. Cash flow is essentially the blood flow of your business. If it isn’t flowing smoothly and you have a clot in your cash flow this could prevent the growth of your business and even cause your business to fail. An accountant/ business coach can plan to ensure that your cash flow will be steady with the help of accurate financial forecasting.

 

  • They can give you advice in regards to tax. With your focus being aimed solely on your business you might not be aware of the in’ s-and-outs of tax regulations and any recent changes in the industry. That is where an accountant comes in handy. They can on your behalf keep up to date on any tax changes that may affect your business and can also advise you on ways to minimise the amount of tax your business is paying.
  • They can also make sure that any payments on your accounts are paid in a timely manner. Rather than you worrying that you’ve left it until last minute an accountant would ensure that preparation was done well in advance and that funds for the payment had been set aside and reserved.

 

Hiring someone to do your books is even more important if you’re at the stage where your business is a limited company. As when you do become a limited company, the whole situation regarding tax gets a little more complicated than it was when you were a sole trader/freelancer. As you will now start paying corporation tax on any profits within your business, you claim expenses differently than you were before and you also now have the option to pay yourselves dividends if you’re a shareholder. All of these things put together not only require a lot more time on your part but a lot more of a thorough understanding of it all. Whereas if you use an accountant they already have an in-depth knowledge of all of these areas, but you’re not wasting your time carrying out these tasks.

 

When it comes down to it you want to sit back yourself and think where is your time best devoted to benefit your business? Sales? Marketing? Have you not had enough time to devote to these areas of your business? Well, look at how you can free up your time so that this time becomes available.

 

If you want to know more about how accounts can help benefit your company get in touch with the team here at DK Accounting. We’ve years of experience in helping businesses of all sizes more efficiently manage their books, grow their businesses and also to free up their own time so that they can either devote that time to growing their business or even to spend more time with their friends or family.

 

 

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