Do I Need A Bookkeeper

There is a legal requirement in the UK to keep adequate financial records both for the self employed, partnerships and Limited Companies in order that an accurate tax & VAT returns can be prepared for HMRC and also in order to file statutory accounts at Companies House in the case of a Limited Company.

Now you can do all the bookkeeping yourself, and for sole traders that are not VAT registered with few transactions you could probably do this yourself. However this is probably not advised if you have significant business transactions and or you are VAT registered.

The role of the Bookkeepers is maintaining accurate and organized financial records, in particular

  • Recording financial transactions: Bookkeepers record financial transactions such as purchases, sales, receipts, and payments in the appropriate accounting software or ledger.
  • Managing accounts payable and accounts receivable: Bookkeepers are responsible for ensuring that bills are paid on time and that customers pay their bills in a timely manner.
  • Reconciling bank statements: Bookkeepers compare bank statements to their records to ensure that all transactions are accounted for and any discrepancies are resolved.
  • Monitoring cash flow: Bookkeepers monitor cash flow and ensure that there is enough money available to cover expenses and pay bills.
  • Assisting with accounts & tax preparation: Bookkeepers work closely with accountants in ensuring that all financial records are accurate and up-to-date so the accountant can prepare and file accounts and tax returns

If you are in business, you employ staff and are VAT registered or you are a rapid growth start up and, you really should not be doing the bookkeeping yourself. Bookkeeping is a specialist job, why do this yourself when you could be spending your time growing your business.

It is wise if you are considering employing a bookkeeper that you employ someone that is a qualified bookkeeper (either AAT or ICB) and that they are certified on the bookkeeping software that you intend to use such as Xero, Quickbooks, Sage or Freeagent