It is a common question, particularly when you have been managing the books yourself since starting your business.
The honest answer is that not every business needs to outsource its bookkeeping immediately. If your business has only a small number of straightforward transactions, you understand the accounting software and you keep the records up to date, you may be able to manage it yourself for a while.
However, as the business becomes busier, bookkeeping can take up more time and become increasingly difficult to stay on top of. At that point, getting help can be less about the size of the business and more about whether doing it yourself is still the best use of your time.
Signs that you may need a bookkeeper
You may benefit from a bookkeeper if:
- Your bookkeeping is regularly left until the end of the month, quarter or year
- You are unsure whether transactions have been recorded correctly
- Your bank balance does not agree with your accounting software
- You have unanswered queries, missing receipts or unreconciled transactions
- You are VAT registered or approaching the VAT registration threshold
- Your accountant frequently needs to correct or reorganise your records
- You do not have a clear view of what the business is earning, spending or owing
- Bookkeeping is taking time away from customers and running the business Even one or two of these issues can indicate that some ongoing support would be useful.
Keep your financial records accurate and organised
Reliable financial information begins with properly maintained bookkeeping records.
A bookkeeper records and categorises transactions, reconciles bank accounts and identifies anything that appears incomplete or unclear. This helps keep your accounting records organised and reduces the likelihood of errors accumulating over time.
Accurate records also make it easier to understand how the business is performing and give your accountant a better foundation when preparing annual accounts and tax returns.
Stay better prepared for tax and VAT obligations
A bookkeeper does not replace your accountant or tax adviser, but good bookkeeping plays an important role in meeting your reporting obligations.
Incomplete or inaccurate records can affect VAT returns, year-end accounts and tax calculations. Regular bookkeeping helps ensure that the underlying financial information is available and in better order when a filing deadline approaches.
Your bookkeeper can also highlight missing records or unusual transactions so that they can be resolved before they become more difficult to investigate.
Save time without employing someone
Many business owners begin by doing everything themselves. That may be practical in the early stages, but it can become inefficient as transaction volumes increase.
Outsourcing your bookkeeping removes much of the repetitive work involved in categorising transactions, reconciling accounts and chasing missing information. You retain visibility and control over the business without needing to complete every bookkeeping task personally.
It can also provide regular support without the cost and responsibility of recruiting, training and managing an employee.
Benefit from consistent, experienced support
Bookkeeping software can automate parts of the process, but it cannot always understand the purpose of a transaction, identify missing information or decide how something should be recorded.
An experienced bookkeeper reviews the records, applies a consistent process and contacts you when something needs clarification.
Over time, a dedicated bookkeeper also becomes familiar with your business, its suppliers and its usual transactions. This can make the bookkeeping process more efficient and reduce the amount of explanation needed each week.
Gain a clearer view of your business finances
When the books are several months behind, it can be difficult to know whether the reports in your accounting software reflect the current position of the business.
Regular bookkeeping gives you more useful information about income, expenditure, outstanding invoices and cash flow. This can help you make better-informed decisions about spending, pricing, investment and future growth.
A bookkeeper cannot make every financial decision for you, but they can help ensure that the figures you are relying on are supported by properly maintained records.
Enjoy greater peace of mind
One of the main benefits of outsourcing bookkeeping is knowing that someone is regularly looking after it.
Instead of worrying about when you will find time to update the accounts, you have an established process for completing the work and resolving queries. You still need to provide documents and answer questions, but you are no longer carrying the entire administrative burden yourself.
So, do you need a bookkeeper?
You may not need one simply because you have started a business. However, you should consider getting support when bookkeeping is falling behind, becoming more complicated or taking you away from more valuable work.
The question is not only whether you are capable of doing the bookkeeping yourself. It is also whether continuing to do it yourself is the most effective use of your time.
Let Vookeeper look after your books
Vookeeper provides straightforward online bookkeeping for UK small businesses.
You will have a dedicated, vetted bookkeeper who gets to know your business and completes your bookkeeping each week. Transactions are reviewed, accounts are reconciled and queries are raised through the Vookeeper client portal, helping keep communication and records organised in one place.
Our fixed monthly plans are based on your transaction volume and include weekly bookkeeping, a dedicated bookkeeper, VAT bookkeeping where required and access to the Vookeeper portal.
If bookkeeping is taking up too much of your time—or simply not getting done—Vookeeper can take it off your hands.
