Any savvy business owner worth their salt knows that if you want to become a success in the capital city then accurate financial management is essential. If you’re about to open a business in London, or if you’re already established but want to ensure that your financial management doesn’t let you down, then take a look at these eight reasons why your London business needs a bookkeeper.
1. Freedom and Flexibility
Whether you’re self-employed or managing a large staff, as a business owner you’ll need to wear many different hats. From day to day you could be meeting with clients, presenting to potential customers, organising staff, planning your payroll and much more, so it’s easy to understand how keeping track of finances can end up slipping through the net.
All businesses need to keep records of their transactions, not least for tax purposes, but a mistake or omission can end up causing a serious problem, especially if you incur fines for late payments or miscalculated tax returns.
Opting for professional bookkeeping services London allows you to offload the stressful and laborious task of financial planning and recording onto someone else who has the necessary skills and expertise. You’re then free to concentrate on other elements of your business that will help your profits increase.
2. Get more Funding
Most businesses need to utilise some sort of funding at some point. This could be anything from looking for an Angel Investor, to getting a bank loan, to leasing equipment. Whatever type of financial assistance you’re looking for you’ll have a much better chance of success if your books are accurate and well presented.
3. Relieve Tax Stress
Tax time is stressful for any businesses but with bookkeeping services in London it really doesn’t have to be. Small business tax accountants and bookkeepers will ensure that all the necessary steps are taken to make filling out your tax returns easy. In addition they’ll also be able to inform you about any tax benefits you may be entitled to.
4. Keep Invoices in Check
A bookkeeper will keep your invoice payments up to date and organised so that you’re less likely to find clients paying late and you won’t end up being charged for late payments on your own expenses.
5. Trends, Patterns and Opportunities
A bookkeeper can break down your financial dealings so you can see trends and patterns and use this information to grow your business. For example you’ll be able to see which of your products or services are selling most successfully and decide on what cuts can be made to help save money.
6. Keep Above Board
Whether you own a registered company, a small business or are self-employed, you have a legal obligation to accurately record your profits or earnings. Miscalculated tax returns or late payments can cost your company dearly and in the worst case scenario could even lead to criminal prosecution.
7. Move on Easily
There are lots of reasons why you may want to sell your business but no buyer is likely to agree to a sale unless you’ve kept accurate books. Otherwise they won’t be able to gauge enough information about your business to know whether or not it’s a viable concern.
8. Save Money
Hiring a bookkeeper is a lot less expensive than you may think and when you take into account the time and money you could save by employing an outside party to manage your accounts it quickly becomes clear that using a professional bookkeeper is a cost effective option.
So make sure you take every step to ensure the success of your London business and hire a bookkeeper to manage your finances.
Lucy Pitt is a freelance commentator who writes extensively on financial planning for small and medium sized businesses including bookkeeping services London, taxation and business funding.