‘Ow much!? We can often hear that sentiment when it comes to the pricing of bookkeeping services. Sometimes accompanied by, “All you have to do is…”

However, the value of bookkeeping might be more than you think.

Bookkeeping may seem like a mundane task, but it’s the backbone of financial success for businesses in the UK. Far from being a simple matter of data entry, proper bookkeeping requires skill, attention to detail, and an understanding of business and financial principles.

Let’s dig deeper:

1️⃣ Financial health: you need your records to be up to date so that you can track cash flow and monitor expenses and profitability.

2️⃣ Tax efficiency: you need your invoices to be coded correctly for VAT, described and coded correctly for tax allowability purposes

3️⃣ Payments accuracy: you want to pay the right suppliers for the correct authorised invoices

4️⃣ Decision Making: You want your invoices to be coded to a tracking category such as a department, office, service or product type, as well as to an expense code such as purchases or repairs. So that your reporting comes out analysed by the same

💡 If you are not using both tracking categories and nominal (expense) codes, then take a look at your reporting for what you could be missing!

5️⃣ Technology integration: There are lots of different apps out there that respond to your specific industry needs, e.g. project accounting in construction and timesheets in professional services. Your bookkeeper must be proficient in these technologies and tools.

6️⃣ Legal compliance: you want your bookkeeping to flow smoothly into your year-end accounts and tax returns

Many accountants do not offer bookkeeping services, citing costs.

Here at Avant Advisory, you certainly do not have to take our bookkeeping services. We are quite able to add our reporting, tax, accounting and business growth advisory services on top of your in-house records and systems.

However, we also wanted to offer an end-to-end solution for those business owners who wanted it so they did not have to take two bottles into the shower.

That takes time and skill. Hopefully, I have illuminated above that a lack of accuracy and thought over the core transactions leads to ‘downstream’ problems with VAT, tax, timely reporting and the annual accounts that then take time to sort out.

We sadly often shake our heads in wonder when taking over the books from other firms about how it could be possible to get things so wrong.

The fees depend on the volume of transactions and the complexity of your business.

Please pause the next time with the “All you have to do is…”, if you see the quote for bookkeeping, VAT, payment services and management accounts starting from £500 per month 🙃

What do you think?