STEPS TO SOURCE ACCOUNTING SERVICES FOR YOUR UK BUSINESS

Your firm will eventually need to hire a bookkeeper to assist with accounting data and tasks.

Some business owners attempt to manage their own books as a cost-cutting measure (more than one-third, or 34%, claim to manage their own bookkeeping).

However, too frequently, these business owners fail to keep correct records or overlook their accounts and bank reconciliations in favor of more essential problems. In any case, if their books become disorganized and they are forced to play catch-up, they risk losing time and money.

Hiring a bookkeeper on a daily basis to record and categorize your transactions is the greatest way to keep your financial information organized and up to date, allowing you to:

a) Improve your money management skills.

b) Make fair long-term plans.

c) Keep your focus on running your business.

While it may take some time to find the best expert for your needs, the following 5 ideas on how to hire a qualified bookkeeper will make your job easier.

1. Hire the right kind of bookkeeper.

Are you growing your small business? If this is the case, it might not be the best time (financially) to hire a full-time bookkeeper. Consider hiring a part-time in-house bookkeeper or outsourcing your accounting to a third-party business as a less expensive option.

Bookkeepers who work on the side (or freelance)

Hiring a trained local specialist for your bookkeeping task may be a more cost-effective option:

Come in on a part-time basis to your workplace.

Maintain a record of your physical documents.

Maintain accurate financial records.

This system, however, has a few potential drawbacks.

If your bookkeeper becomes unwell or goes on vacation, there will be no one to cover their work. Worse, if they abruptly leave or vanish, locating your accounts and transitioning to a new bookkeeper may be complicated and time-consuming.

There's also the risk that if your company grows too large or too quickly, your part-time bookkeeper will struggle to keep up, especially if you have a lot of clients.

2. Bookkeeping Services Outsourcing

Another low-cost bookkeeping option is to use a third-party or virtual company. While these companies are often far away (they will not come to your office), they are technologically proficient. This indicates that they will be able to automate your receipt gathering and invoicing processes.

Another big advantage of hiring an outside accounting company is that, because they often operate as a team, there will always be someone available to review your books.

Even better, most third-party organizations offer additional services such as specialized payroll, accounts payable, and accounts receivable administration, allowing them to adapt to your changing bookkeeping requirements as your firm grows.

3. Confirm their business experience.

Because bookkeeping practices differ by sector, it's vital that the bookkeeper you hire has past experience dealing with businesses like yours. If they've only ever interacted with clients in the restaurant sector, they might not know how to keep proper records for a charity organization.

A good bookkeeper should be capable of the following tasks:

Make an accounting chart (based on your business type and needs)

Sort your daily cash transactions into categories.

Make a set of financial statements.

Don't be afraid to ask a bookkeeper about their years of experience and, if required, technical inquiries.

4. Examine the various services they offer.

Learning how to hire a professional bookkeeper requires weighing the benefits of any other services they offer against their bookkeeping skills and talents. Hiring someone to manage your payroll separately, for example, may raise your bookkeeping expenses.

While bookkeepers and accountants have unique areas of competence, many organizations (such as Enkel) provide specialized services (such as fractional controllership) to assist you in managing your company's growth.

5. Determine whether they are acquainted with accounting software.

When your company is new, bookkeeping with spreadsheets may be enough, but relying on manually entered data over time can make accurate financials challenging.

Good bookkeepers are not just aware of the benefits of using accounting software to keep records correct and operations streamlined; they are also:

Do you know what desktop software the majority of organizations use?

the capability of migrating your books to cloud-based applications like QBO (QuickBooks Online)

Apps and technology tools for automating certain data-entry tasks may be suggested.

Before hiring a competent bookkeeper, learn about their understanding of certain accounting systems and software.

6. Confirm the Outsourcing Bookkeeping Services Provider's authenticity.

Getting a referral from someone you trust might be a good way to examine the reliability of a potential accounting job. Seek help from your accountant, banker, other business owners, or a local professional organisation.

If you're considering hiring a bookkeeper you located on the internet, be sure to:

Client references and/or case studies that illustrate their expertise should be requested.

Speak directly with prior or present clients.

Use the information you've obtained to determine whether they're a good fit and if they're trustworthy.

With 98% of business owners stating that they would rather focus on business growth than on tedious tasks like bookkeeping, knowing how to employ a competent bookkeeper boils down to managing your time.