Many sole traders and small businesses question whether they need the services of a bookkeeper.

The obvious concern is cost, especially with all the new cloud based bookkeeping software that are on the market. A lot of them are now offered when setting up a business bank account. They are, however, only as good as the person inputting the information. I have heard many a ‘bookkeepers tale’ of having to unravel and correct bookkeeping entries, which ultimately proves more costly.

Many businesses need to use an accountant for their year end accounts preparation and filing. Using a bookkeeper will substantially reduce an accountants bill.

So, advantages of using a bookkeeper:

Your paperwork is regularly updated giving you regular information to make financial decisions.

You remain compliant with  HMRC regulations and payments. This is especially important with all the changes regarding Making Tax Digital. This is the quarterly reporting of figures (VAT) and in future Self Assessment directly to HMRC using bookkeeping software.

Business Bank Accounts regularly reconciled, this ensure all income and expenditure is correctly recorded and errors can be spotted quickly.

You are claiming all that you are entitled to claim as a business, therefore reducing your tax bill.

Bookkeepers are generally more ‘hands on’ in their relationship with smaller businesses, sole traders.

Many bookkeepers are now qualified to prepare self assessments. A ‘one stop’ shop for a sole trader with small amounts of paperwork who requires a self assessment.

Bookkeepers can be a lot more competitive on price. Lower overheads with all the knowledge and training.