Bookkeeping vs accounting: which is right for your business?

It is unlikely you will need this service, unless you are voluntarily registered for VAT. For instance, financial reporting can help a business look beyond impressive sales figures and identify spending issues which are damaging profits. You sell an item of stock to a paying customer, and make two entries in your bookkeeping to show the transaction. “Easy to use and value for money. Everything you need to do your tax.” The question may now have been answered for you, but sometimes, it’s a little harder to figure out which one you need. Bookkeeping is a part of accounting work, and is often referred to as the more administrative side of the profession.

We’ll contact you to discuss your enquiry, help you choose the right course and let you know of any special offers. We hope this blog gives you confidence that whatever path you choose, you’re sure to be busy, successful, and fulfilled in your role. If you already have a Level 3 qualification https://www.archyde.com/how-do-bookkeeping-and-accounting-services-affect-the-finances-of-real-estate-companies/ however, and are looking to further progress in your career, then the AAT Level 4 Diploma in Professional Accounting is the way to go. If you’re considering a career in accountancy you’ll need a passion for numbers, a natural flair for problem solving and to work well under pressure.

The benefits of accounting

Accountants also have a terrific behind-the-scenes viewpoint of other businesses, and this knowledge can be a valuable resource for seeing what works for someone else, or what might need more attention. This isn’t just money in, money out, but the stability of your business and its prospects going forward, and even what decisions to make and when. Claiming tax relief on business expenses is a particularly big topic here, with lots of businesses failing to claim what they’re entitled to because they’re worried about getting it wrong.

• You must do your books and have a tool like Accounting Cloud to handle your taxes.
• It’ll also make things a lot easier when the time comes to get the information you need about the salary and dividends your company paid you in the tax year to include in your annual Self Assessment.
• This is where the role of an accountant can begin to become far more strategically focused than a bookkeeper.
• With this, your business must do taxes digitally using software and applications.
• Getting some help with your bookkeeping can free up time that could be spent on other aspects of your business.

Accountancy firms often work in conjunction with bookkeepers to make sure they have the right financial information for the multiple disciplines that they provide. That includes signed off audits, taxation, business strategy and corporate finance, as well as specialist subject areas such as insolvency and forensic accounting. Some accountants will need you to record everything using online accounting software (or Microsoft construction bookkeeping Excel if they’re old-fashioned), others will take care of your bookkeeping for you . There’s a number of different taxes small businesses need to pay throughout the year, and bookkeeping means you can correctly calculate how much is due. This helps you prepare for the financial year ahead and allows you to think about what your next moves are, whether that’s growing your business or setting up a limited company.

Take advantage of new pension tax reforms

Pinpricks of light for SMEs buried deep in the Budget Budget is missed opportunity to support SMEs through economic turmoil, but cash basis consultation and promise of simplified tax are some consolation. Social media mistakes that are costing you the job 74% of employers will look you up on social media before hiring you. But when your business grows in size, intersects more people and different geographies, record-keeping becomes complex and time-consuming. After assessing all the findings, accountants help businesses make future sound decisions to thrive.

The terms “bookkeeper” and “accountant” can be used without certification, so it’s important to know what qualifications people have before hiring them. Up-to-date and accurate books give an accountant time to find relevant tax deductions and allowances instead of going through numbers of receipts. Recurring patterns in your business’s financial information can tell you if you are making more money than you are spending or if you are headed towards a cash crunch. We can not speak for every single bookkeeper or accountant in the world, but there are some typical tasks and duties that each role does, which is what makes them different.