This is often a subject which gets confusing for some. Bookkeepers’ and accountants can either be misconstrued as the same thing or that it’s better to have an accountant than a bookkeeper which is simply not the case. 

A bookkeeper will monitor your day to day transactions, they get to learn all about the way you run your business, who your clients are, who your suppliers are and can advise you on how to save money and get the best out of your business. This means that your bookkeeper has a better insight into what is affecting your cash flow and can therefore liaise with your accountant to map out a plan of action. 

An accountant relies on the work of a bookkeeper to be able to file accounts and tax returns, which many bookkeepers can also do on your behalf. However the job of a bookkeeper and an accountant can actually compliment each other quite well. If you ensure that you introduce your bookkeeper and accountant to each other, they can work really well alongside each other so that your future cash flow forecasts are as accurate as possible. 

Choosing to just have an accountant is a mistake that many businesses make. An accountant will not gather all of the information required which a bookkeeper would, so you would be expected to put all this information together yourself. By doing this there could be inaccuracies and of course it takes up a lot of your time. A bookkeeper will ensure that your accounts are reconciled at the end of each month and all paperwork is available ready for your tax return. Just remember if you don’t have the proof readily available then you can’t claim the tax relief.

Many bookkeepers just like us at LJM Bookkeeping Ltd have now introduced new services to make sure that no stone is unturned when it comes to managing your accounts. From admin to credit control to reconciliation and cash flow forecasts we can make sure that you are always aware of your financial position so that you can make vital decisions for your business. No more having to wait around until the end of the quarter to speak to your accountant. With the help of cloud accounting you can access your business finances in real time.

Accountants offer more in depth advice about your finances that a bookkeeper can’t necessarily divulge. So we definitely advise that the best thing for your business is to have both a bookkeeper and an accountant working alongside each other in tandem to ensure the smooth running of your business and to ensure you get the best advice in order to grow your business. 

If you’re considering hiring a bookkeeper then please get in touch. If you have an accountant we are more than happy to work alongside them or recommend a great accountant to you to suit your business requirements.