A great bookkeeper can be a real asset to your business, and in this guide we look at just some of the qualities that make for a great one, including attention to detail, accurately being able to estimate costs and value for money.

In the second of this two-part post, we look at five more vital assets of a great bookkeeper.

1. Experience in your industry: Different industries have different financial regulations, and whilst a more than capable bookkeeper will have good general experience, a great bookkeeper will possess experience relevant to your business.
2. Ability to estimate costs accurately: A great bookkeeper will have the ability to create projections for you, not just in the current financial year, but also into the future, thus allowing you to manage your finances a whole lot better.
3. In tune with industry developments: A great bookkeeper won’t just stick to what they were taught, they will adapt to new methods and techniques as well as keeping on top of any new rules and regulations that are implemented.
4. Good communication: Great bookkeepers will be clear and concise communicators, providing you with all the information that you need to know in jargon-free language you can understand.
5. IT skills: In the modern age of SAGE and online returns, it is vital for books to be kept online. A good bookkeeper should be competent in the use accountancy software and able to records and financial projections in spread sheet or database form as appropriate.

So there you have it! If you’re looking to hire a great bookkeeper, you should be looking for much more than simply their ability to add up; factors such as their organisational ability, estimation accuracy and their value for money should all be key considerations.

A great bookkeeper can be a real asset to your business, and in this guide we look at just some of the qualities that make for a great one, including attention to detail, accurately being able to estimate costs and value for money.

In this two-part post, we look at the ten vital assets of a great bookkeeper. Here are our first five:

1. Value for money: Most businesses hire a bookkeeper in an attempt to save both time and money, thus allowing them to concentrate on other areas of the business. A great bookkeeper will demonstrate immediate value for money in both areas.
2. Attention to detail: A great bookkeeper will pay a real attention to the smallest points, ensuring that your accounts are mistake free.
3. Knowledge: It is vital for a bookkeeper to know their job inside out. A great bookkeeper should be able to explain key accountancy terms (such as ‘profit’ and ‘loss’) to you without a second thought.
4. Working to deadlines: Great bookkeepers will work to deadlines for the likes of returns and PAYE with the minimum of fuss and professionalism, ensuring that all deadlines are comfortably met.
5. Ability to work independently: A great bookkeeper will be very comfortable working independently and prompting you for vital information or documents.

Join us for part two tomorrow!

In this guide, we cover the bookkeeping basics that every small business owner should know, from simple steps like keeping receipts together, to the more complex business of categorising your financial records.

The three files you must keep

As a minimum, you should keep a cash book, a sales invoice file and a purchase invoice file. Your cash book details payments in and out of your bank account, your sales invoice file details all the sales that you’ve made and whether they’ve been paid for or not, whilst your purchase invoice file details any purchases you’ve made, as well as when and how you paid for them.

If you use accounting software, you can use it to store all of these records, but if you don’t, a simple series of spreadsheets should suffice.

Check your bank statements

Spend time checking each and every bank statement you get to ensure that no mistakes have been made and that no fraud has taken place. It will also give you a complete breakdown of exactly what your income and expenditure is, and allow you to spot trends and ensure your cash book entries are accurate.

Get proof of purchase for everything

It’s best to get a receipt for everything that you buy for your business, no matter how large or small. It will make it much easier to look back through and update your records, and it will also mean that you have all the required proofs of purchase should the taxman decide to do an audit.

Separate your business and personal accounts

You should have separate bank accounts for personal and business use and should only use funds in your business account to fund purchases for your business.

Clear a regular slot in your calendar

When you’re busy with everything from meeting client deadlines to pitching new business, it can be easy to throw your receipts in a box, leave invoices on your ‘to do’ list and ultimately, lose track of your books altogether. Set aside a regular time each week – clearly marked out in your calendar as a recurring appointment – to keep on top of your accounts, and stick to it!

Remember it’s more than just ‘best practice’

Putting off going through your books and generally being disorganised is a big no-no. Not only will HMRC fine you if you are late in filing any financial documents, but you cannot run a business effectively if you don’t have a firm grasp of your finances.

If you’re struggling with your record keeping, give us a call on 01327 856076 and we’ll be happy to talk you through your options.

To keep things simple, many small business owners use accounting software to help them keep an accurate record of their incomings and outgoings, and to make it easier to file their tax returns at the end of the financial year.

But what’s the right accounting software for you? This guide details the factors to consider when choosing accounting software, and explains how to ensure that it is tailored to your requirements:

What does accounting software do?

Accounting software packages are computer-based programmes designed to simplify the bookkeeping process.

Essentially, if you pick a good package, and set it up correctly, all you should need to do is input your key data correctly (and promptly!) and the software will ensure that your books are in good order.

What do you need?

1. Just the basics? Basic accounting packages might just offer some fields for you to record your incomings and outgoings, and then produce final figures for you. Check for the features that suit the way you trade e.g. the ability to add client records, the ability to bill by unit and by hour etc.
2. Tax help? Higher tech programmes will do more to help you run your business, such as generating invoices, receipts and reminders. Top notch software will also allow you to upload information straight to the HMRC website when filing your tax return.
3. Payroll? If your business has employees aside from yourself, you may want a package that is able to record and manage your payroll, including generating payslips, and calculating tax and NI.
4. On PC or in the cloud? Some accounting software can be installed on your PC, whereas others simply offer you an online login. Having a central access point can be very useful if you tend to access your records from lots of different devices (but make sure you keep a hard backup somewhere).
5. Bells and whistles or ease of use? If you’re pushed for time, a package that does everything but make the tea might look good, but if you haven’t the time to learn how to use it, it can prove a false economy. Most packages come with a free trial period, so it’s worth getting set up, and then deciding if it’s worth the time, or if you’d be better off employing a bookkeeping and/or chartered accountant.

If you’re struggling with your record keeping, give us a call on 01327 856076 and we’ll be happy to talk you through your options.

For small businesses, keeping track of cash flow can be a struggle. With limited staff, or none at all, keeping on top of accounting often falls by the wayside in busy periods.

There are some simple steps you can take to make sure your business finances start, and end, 2010 in order.

• Set up a filing system and start recording everything

Apart from the legal requirement, by keeping this information split between income and outgoings, you will have a better sense of cash flow, helping you to better manage your business.

By catagorising expenses into ‘rent’, utilities, or stationary, for example, you will get a clearer picture of where you might be over-spending.

• Check your records against your bank statements

Making sure you tick off everything on your statement before filing it away each month will help you keep check of missing receipts, and provide a constant monthly deadline for getting your records in check.

• Get everything on a computer

Keeping your records on a spreadsheet, or using bookkeeping software, will allow you to see transactions in an instant. Figures will be easy to find, should a mystery debit appear on your bank statement, and you can even produce projections, based on previous months.

• Remind yourself

Keep an up to date calendar, or set reminders on your computer – if you use Outlook, tasks, emails and dates can be set to ‘pop-up’ when their due. If you have an accountant, you will also need to enter the date they require your records by.

Leave yourself 30 days before each deadline, allowing plenty of time and avoiding a last minute rush.

If you really can’t commit to the above, it may be time to call in an experienced bookkeeper. Of course, there will be an expense associated with this, but since it could free up your time, and give you better information with which to make business decisions, it might just be worth the investment. I provide a free accountancy question and answer session every Tuesday on Twitter, join me @AccountsAssist.