Friday 24 February 2017

How can Remote Bookkeeping Services Reduce Expenses for Small Business?

Every kind of business requires good financing to succeed in their goals. If your company cannot manage the expenses and income, then how will you find out the important aspects where you need to spend and the aspects where you do not need to spend. Moreover, how will you even know if you can afford money for advertising which is important for developing a business and expanding it. Keeping a constant tab on your company’s expenses and income is necessary to decide on important matters and manage anything and even bail out from a risky situation.

Proper bookkeeping means keeping proper record of everyday monetary transactions and this must be handled with lot of care not to land up in soup later on. In order to do this properly, you can seek remote bookkeeping services in UK. They can help you in keeping flawless book for your organization.


Remote Bookkeeping for your Small Business


Remote bookkeeping is quite simple and easy and involves knowing what you want to achieve through your small business. Also, you can have to decide whether you simply want to do bookkeeping or you want additional services like tax and bills payment. Knowing what you exactly want is essential because the professional service providers give options to choose from. The services more or less include the following:

  • Completing and checking reconciliations
  • Completing financial reports on weekly/monthly basis
  • Updating financial information on a daily basis
  • CPA services
  • Audit and bankruptcy services
  • Getting bills and taxes paid every year for you
  • Forensic Accounting
  • Custom conduits existing in your software

There are other services as well, but all of them are based on accounting and bookkeeping services. However, these services are essential to run the company. Once you know all the services, you can determine which one you wish to access further. Remote Xero bookkeeper handles your financial data and copies your data to a place of your choice. Using laptops and tablets to access such information is also possible. Set a password to keep the information safe.


Is Remote Bookkeeping Secure?


The only security issue is for information. You might think that putting financial data on the server is not safe. But it is safe with the right kind of security system and your bookkeepers will make it secured in the most cost-efficient manner. The data is protected by the secure server through the mandate by state cyber security laws. The servers used are designed to be safe and efficient as possible. The security goes through constant updates and uses newer servers to get the information moving even faster than it will normally be. The backups are also kept secure. In fact, cloud is the commonest platform used to store and manage data.

Offsite backups are also kept by the remote bookkeepers and this is another way to keep the information safe. Hence, you can expect truly professional service at incredible cost effectivity. Such bookkeepers are excellent in their service at a real cheap price. They save money in the long term as well.

Monday 13 February 2017

Remote Bookkeeping Services - Accounting Firms or Sole Practitioners?

So, you do not approve of maintaining huge books on all the business transactions for your small or medium sized business. Enough of a box of receipts and notes. It is high time that you switch to using online facilities for keeping books and records. However, here lies the big question whether you should hire a solo practitioner or a management accounting & bookkeeping consultant in UK. Read through this post to find out about the pros and cons so that you can choose the best option. After all, you will be investing money to receive the service and you will definitely want the best service providers.

A Comparative Study

Here we are bringing a comparative study on each practitioner so that you can choose the best.

Bookkeepers


Majority of people are confused regarding the functions of bookkeepers and accountants. They have clear area of functions which does not overlap. Both of them work on your finances but in different capacities. The remote bookkeeping services in UK focus on the regular monetary transactions for your business whereas an accountant works with the overall finance structure and is also capable of advising small and medium business owners regarding better financial management. Maintaining payroll, processing invoices are some of the functions carried on by bookkeepers.

Remote Bookkeeping Services in UK

There are certain pros and cons to this practice. A bookkeeper helps in running the day to day business quite efficiently. They ensure that your finances are all in proper category and the record is clear for the accountant to take a look into. However, he/she is not capable of offering help with audit, tax or corporate reporting.

A Sole Accounting Practitioner


A sole accountant is professional who is practicing alone. He/she can handle the financial needs of clients in a very broad manner. An accountant is supposed to help the small or medium business owner to have sound finances running and also evaluate the financial structure of the organization. He/she not only takes care of the bigger financial structure but also provides advises on the financial health of the business entity.

The biggest advantage of working with a sole accountant is that you will get more customized solutions for your business. A single professional or a smaller firm might tailor make services pertaining to your business. On one hand he/she will always be on toe whenever you need his service but on the other hand he/she may not be able to cover all the aspects of accounting for your small business. Sometimes, it is a problem about finding out the quality of an individual practitioner’s service.

Financial Accounting Firms


There are larger accounting firms offering accounting services for small and medium business enterprises. These firms hire competent people for taking care of the financial needs of their clients. In fact, they can provide all those services provided by a sole practitioner but are also capable of providing some more on a large scale basis like international financial management. Some of these firms also offer logistics and business process outsourcing services.

The biggest advantage is that these firms will offer tailor made services and that too at a large scale. Also, they usually work with various types of clients which makes them more professional in their approach. The disadvantage is that there is less of personalized service and the service packages might be expensive as well.

However, even after you have hired any of these for your to take care of your finances, chances are that you will have to take care of your expenses on a personal level. Also, you have to keep working towards maintaining a good relationship with the clients. Using a software that both of you are comfortable with is also important. If everything is put together properly, your tax time will be easier.

Monday 6 February 2017

Small Business Virtual Bookkeeping Services - Spot the Most Efficient One

You will come across various weird slogans like “ways to grow multi million turnover company in two weeks”. Now, even you know without reading any further than this is an impossible proposition. No small business virtual bookkeeping services in UK are capable of achieving such a fit and therefore it is a bluff. Growing a business does not happen overnight and neither can you take all the responsibility for its development. Hiring a virtual bookkeeper is definitely helpful and will take half the burden off your shoulder. However, finding the right kind of service provider for your business is not easy and therefore remembering these pointers will help you to get the best deal.

Small Business Virtual Bookkeeping Services

  • Their Location: Always find out about the location of the company. This is extremely important in case they turn out to be fraud. Of course you will be interacting with their online setup, but even then one must have a clear idea about their physical presence. Find out where they are headquartered and also from where they operate their back office work. This is your defense.
  • Whether They Offer Sound Security: The virtual organization should have security in place. If their security protocols are working fine, you should not have a problem in working with them; your information will be safe. Find out who is accessing the stored data to stop breach of important information.
  • Their Employee Quality: The company will appear professional on their website because that is the idea. However, you will want to know more about the Xero bookkeeper in UK who will be doing it for you. Inquire about the credentials, training format and their past experiences.
  • Service Format: Find out about their method of delivering services and deliverables. Ask about what and how to expect the work to be done so that your relationships could be transparent. How will you access your reports and also how are they scheduling online meetings and also the way you can monitor the progress.
  • How Long You Need Service: You may not want to continue with them for long term. If you need a contract-based service, then lay the terms for the same. However, if you are looking to hire project-based work, then talk to them and find service providers matching your expectations.
  • Reviews/Feedback: This is an extremely important step in finding out the proper company. Use their contact information provided on the website to talk to them and also do some individual research online regarding the company. Alternatively, you can also ask their clients to provide reviews for them.

Follow these steps to find out the best virtual bookkeeping services for small business in UK because you cannot afford to lose money, face and time. Keeping these points in mind will definitely lead you to the most efficient service provider for your small time business which can benefit you in the long run.

Wednesday 25 January 2017

Small Business Bookkeeping Services in UK Making Audit Easy for Businesses

Managing financial resources for a small business is always difficult. On top of that if you have received an audit request from IRS it becomes even more frightening. The first thing a small business owner needs to do after receiving the audit notification is to take a deep breath and relax. An audit does not really mean that there is a loophole in your financial management; instead it means that the IRS has randomly chosen your business organization for examination on tax return. The verification will be on a close level to find out if everything is alright. During this time it helps to seek professional guidance from small business bookkeeping services in UK.

Small Business Bookkeeping Services in UK

However, if you wish to survive the small business audit, these points will definitely help you in relaxing and going through this process calmly. The points to remember are:

  • Take it Impersonally: The rule of thumb to survive small business audit is to avoid turning it into an “us vs. them” situation. Quit thinking that the IRS will take you down. It won’t. In fact, they are straightforward and friendly in terms of their duty. So, do not give them the vibe that you are trying to hide something or deceiving them. Even if there are mistakes, they are not going to harass you in rectifying those. According to Forbes, out of 2 million business returns filed every year, only 1.6% is audited. Thus, the chance of you being harassed is almost zero.
  • Keep Things Simple and Straight: The IRS is usually forthcoming about their expectations from you during the audit process. You have to understand those expectations and therefore it is easy for you to give them what they want and consider your account closed. For instance, they might want proof of your donation to charity through mail. Simply get a photocopy done and submit it to them. Consider your audit complete. Even in the case of field audit, clear instructions are provided regarding the proofs. As long as you are not deceiving them intentionally, you can relax. So, do not make it more complicated and you will be surprised at how easy and smooth the process is.
  • Make the Upcoming Audit Smooth: Now that you know what it consists of; make the next one simple as opined by your bookkeeper. Try to maintain income statements, financial records and tax records for 3 years. Additionally, retain your check book stubs for the same period of time. Keep a tab on the tax deductibles as well to avoid making any kind of mistakes in the record.

Professional audit for small business is not a very big issue until you make it that way. Keep it simple and straightforward for the IRS so that you can be safe. Keep clear records and also provide proofs for all the transaction and maintain clear books with the help of Isle of Man bookkeepers to avoid mistakes and thus any kind of penalty.

Friday 13 January 2017

Virtual Bookkeeping Steadily Gaining Popularity Among Small & Startup Businesses

The concept of Virtual Bookkeeping has garnered popularity in recent times. This approach of bookkeeping is allows an accountant or a bookkeeper to provide accounting services to a client from a remote location. The range of accounting services proves to be equally beneficial for both the service providers as well as their clients. In contrast to the conventional approach, this modern strategy provides greater flexibility and proves to be cost-effective as well. A virtual bookkeeper usually takes help of professional versions of bookkeeping software to post financial transactions as well as review and update statements and reconcile accounts.

Virtual Bookkeeping

Nowadays bookkeeping services for small and medium business enterprises in the UK and other parts are a much needed requirement. The service providers usually work from a remote location and with the use of cloud based accounting software like Xero, simplifies the overall accounting and bookkeeping process of the business. In order to facilitate a smooth working condition, businesses or clients require granting the bookkeeper remote access to the server where all financial documents are stored. With the help of accounting software, creating financial accounting reports, invoicing, tracking inventory to paying bills and managing payroll of employees, everything is done with ease. The virtual accountants also do not take up office space and do not require the resources that other office employees are entitled to. They work flexibly and of course do not require working on fixed-hourly basis.

A Xero bookkeeper, who provide remote and virtual service to their clients prove helpful for small and startup businesses. The category of businesses usually finds it hard to employ full-time accountants but simultaneously, requires the accounting service. The range of bookkeeping services is renowned to provide accounting solutions from remote locations that is comprehensive, full-proof and dependable on all aspects. The fraternity of virtual accountants has a reputation for completing their task right within specified deadlines too.

Monday 9 January 2017

Inside Small Business Bookkeeping in UK

We know of thousands of such small business owners or entrepreneurs who are great with creating products, launching them and also win over customers instantly. However, not all of them are equally good in basic bookkeeping. Moreover, if you are someone like me who learned it after much effort, this post is going to help you to jot down the points that are covered in small business bookkeeping in UK.

Small Business Bookkeeping in UK

What All are There in Bookkeeping?


Apparently, it is not rocket science. However, it has a science of its own. Though most of the work today is done with the help of software, yet the basic accounts must be known to be able to function properly. Here is a list on the most important accounts that a small business entrepreneur should know:
  1. Cash: This is the basic of basics. Cash Receipts and Cash Disbursements are the 2 basic cash accounts that are maintained by a Xero bookkeeper. It is one of the most important accounts in business accounting.
  2. Inventory: This is the stock of the company and enables the owner to keep track of the products. The number maintained in the computer by the software must be tallied with the physical stock within the company.
  3. Accounts Receivable: This type of account is created when your company does not get paid immediately for products or services sold. It keeps track of the amount due from customers. This helps in sending accurate bills to customers.
  4. Accounts Payable: This is exactly the opposite because it keeps track of the money payable by the organization. Good bookkeeping ensures that the company makes accurate payment. Also, it prevents extra payment of money.
  5. Sales: Sales is vital to any organization and keeping track of this will clarify the revenue generated by the company. The position of the small business can be measured with the help of this account.
  6. Purchases: Making purchase is an important part of running any business. Keeping track of purchased raw materials and finished goods help in knowing the company’s gross profit.
  7. Loans Payable: Whatever money is due on the part of the company in lieu of buying vehicles, equipments, furniture or such objects is maintained in this account.
  8. Payroll Expenses: This is the biggest monetary account and the most important one because it contains all the tax and government expense records.
  9. Owner’s Equity: This keep a record of how much each owner has contributed towards business. This account can be divided into Capital and Drawing Accounts for small businesses.
  10. Retained Earnings: This deals in reinvesting profits into the business and not sharing it with owners. This account is cumulative and hence provides a good overview for lenders and investors to know about the company’s performance over a long period of time.

All these accounts constitute bookkeeping. To think each of these were maintained manually even during the last decade. However, now, there is software to help maintain these accounts which are absolutely important for small businesses.

Wednesday 4 January 2017

Know-How on Tax Deductibles for Small Business Houses

Attentive bookkeeping is essential for any business and particularly for small businesses who often suffer from financial losses due to unorganized financial data. Tax deductions and exemptions are also calculated depending on the ledger documents maintained by bookkeepers. To keep these deductions and exemptions transparent you can seek professional help from professional online bookkeepers offering bookkeeping services for small businesses in the UK. United Kingdom is dotted with several small business entrepreneurs who are in dire need of such professional aid.

Tax Deduction

Some tax tips for small time business entrepreneurs include:

  • Deductions for Home Offices: Many small time entrepreneurs work from home and are afraid of claiming their legit deductions. This fear stems from audit sessions but can be overcome by keeping track of all transaction records.

  • Purchase of Technological Equipment: Buying computers, printers and even vehicles come under tax deduction. The cost can be split or one can pay the money altogether depending on the item. Even business related software comes under tax deduction. Also make sure that you use the single vehicle for your business purpose.

  • Travel Expenses: Going around for business purpose entails various types of expenses. Some of these are airfare, hotel fees, car rental and laundry costs as well. Food is also deductible up to 50%. Moreover, if you are travelling with your family, only your cost of travel comes under tax deduction. Taking clients out for a meal is also 50% deductible. Conference fees and visits to amusement parks also come under deductions.

Keeping all these things in mind might be difficult and confusing for a business entrepreneur. However, a Xero certified bookkeeper will easily and accurately maintain the record and therefore be ready for deductions. Such software as Xero helps in sorting out difficult and lengthy tasks and reduces it into easy and accurate ones. In fact, they make for easy access of ledger and financial data.