The term ‘bookkeeping services’ might bring to mind endless hours of monotonous data entry into dusty ledgers, but in reality, they’re so much more than that.
While entering data is certainly a key part of bookkeeping, there are numerous practical tasks that help you keep a firm grip on your business’s finances.
So, what exactly do bookkeeping services include? Let’s explore that in detail.
What Are Bookkeeping Services?
Widely used by businesses across the UK, bookkeeping services involve recording and reconciling all your daily financial transactions.
Your bookkeeper will then organise this information into a clear, standardised format, which forms the backbone of your business’s accounting and overall financial management.
Beyond data entry and accounts reconciliation, bookkeeping services often cover several other important areas.
Accounts Receivable and Accounts Payable
One of the main responsibilities of your bookkeeper is managing your invoicing — from drafting invoices to sending them out to clients. But their role doesn’t stop there. They’ll also oversee your accounts receivable and accounts payable.
This means they’ll ensure your customers pay their invoices promptly, chasing payments when necessary. Likewise, they’ll make sure your suppliers are paid on time and that your bills are kept up to date.
Payroll Processing
Depending on the level of service you choose, your bookkeeper may also handle payroll.
They will calculate all necessary tax and National Insurance deductions from your employees’ wages (including your employer contributions), ensuring your team is paid on schedule. Additionally, they’ll take care of the essential compliance paperwork, keeping your payroll systems aligned with HMRC regulations.
Monthly Financial Reports
To help you monitor your business’s financial health, your bookkeeper will prepare a range of financial reports and provide them to you on a monthly basis. These typically include:
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Balance sheets – showing your business’s current financial position.
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Profit and loss accounts – detailing your earnings and expenses to give you a clear picture of profitability.
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Cash flow statements – tracking the money flowing in and out of your business.
Together, these reports offer a comprehensive snapshot of your day-to-day financial operations. They can be invaluable when you’re preparing a business plan or applying for funding.
Bank Reconciliation
After gathering your essential financial records, your bookkeeper will compare them against your bank statements.
This crucial task helps spot any missed transactions or data entry errors, ensuring your accounts are accurate and up to date.
Regularly reconciling your bank accounts with your bookkeeping records helps maintain a healthy accounting process and prevents issues from escalating later on.
Need a Professional Bookkeeper?
While bookkeeping and accounting often go hand in hand, they are not the same. Your bookkeeping lays the foundation for all your important financial reporting throughout the year. Without a skilled bookkeeper, essential financial tasks may fall by the wayside.
Our team has been providing expert bookkeeping services to clients for many years, and we’d be delighted to support your business too.
Get in touch to discuss how our professional bookkeeping service can help you stay on top of your business’s financial records and make informed financial decisions.
