Bookkeeping

After using QuickBooks Desktop software by Intuit for 13 years, Arianna decided to embark on training to be a QuickBooks Online ProAdvisor. She has worked very hard over the last few months, fitting her training around client work and home responsibilities. On Monday March 20th, 2017 Arianna took the online exam which covered all aspects of the software and became a Certified QBO Advisor.

During her training, Arianna covered many aspects of QBO from setting it up for the first time right through to creating custom reports that clients can create with a touch of a button! This new qualification fits nicely alongside the QuickBooks Desktop ProAdvisor Certification she earned in September 2016.

Gaining the certification for QBO means that Arianna is able to assist her clients in taking the steps necessary to have better control of their finances, a better understanding of their cash flow and preparing them for Making Tax Digital. We look forward to helping our clients with growing their business. We can’t wait to see what 2017 brings!

Below are 10 helpful tips on how you can keep your records straight.

1. Have a separate business bank account/PayPal account etc.
2. File all invoices and receipts in separate monthly folders.
3. Keep “paid” and “unpaid” invoices separate.
4. Set aside an hour every week to keep your purchase ledger and sales ledger up to date.
5. Enter petty cash receipts either weekly or monthly and ensure they are fully reconciled each time.
6. Reconcile your bank/PayPal accounts every month.
7. If you paid for something personally, note it on the receipt and whether it is a loan or an investment.
8. Mark invoices as PAID and put on them how they have been paid – cheque, cash, bank, etc.
9. Store the paperwork for each financial year separately so you can access it easily if needed.
10. And FINALLY…and probably the most important is to just keep on top of your paperwork.

If you would like more information on how we can help you with your record keeping, please contact us via the Contact Us Page, our Facebook Page, or on Twitter.

You’ve set up your business, sales are pouring in, the paperwork is piling up, you need some help with keeping on top of the accounts, but you don’t know who to turn to. You ask yourself “Do I need a bookkeeper or an accountant?”

By the end of this post, you will know what a bookkeeper does and what an accountant does.

A bookkeeper:

• enters all sales and purchase information
• enters all bank transactions
• enters all petty cash transactions
• keeps the sales ledger and purchase ledger up to date
• reconciles all bank accounts
• prepares and files VAT returns
• prepares accounts to trial balance

Some bookkeepers can also:

• calculate and submit all payroll info to HMRC
• prepare the profit & loss statement
• prepare the balance sheet
• submit self-assessments

An accountant:

• provides tax advice
• Help prepare budgets
• files self-assessments and corporation tax returns
• analyses the financial statements & provides advice
• prepares financial statements
• and many more tasks….

Bookkeepers and accountants regularly work together to ensure that a business is receiving the best advice and support possible.

It is very important that before hiring a bookkeeper or an accountant, you check that they are registered with a professional body and that they hold a valid practicing certificate and insurance. Do not be afraid to ask them to see their certificate or credentials.  A bookkeeper in the UK should be registered with either the ICB (Institute of Certified Bookkeepers) or the IAB (International Association of Bookkeepers).  An accountant in the UK will be registered with the ICAEW (Institute of Chartered Accountants in England and Wales), CIMA (Chartered Institute of Management Accountants), CIPFA (The Chartered Institute of Public Finance & Accountancy) or ICAS (The Institute of Chartered Accountants of Scotland).

Come back tomorrow to find out the Top 5 Reasons Why Your Business Needs a Bookkeeper!

If you would like to know more about the bookkeeping services we offer, have a look at our bookkeeping page, or contact us via the Contact Us Page, our Facebook Page, or on Twitter.

In yesterday’s post, we talked about the differences between a bookkeeper and an accountant which one you needed. Today we are going to talk about the top 5 reasons why you need a bookkeeper.

1. Frees up your time – By having a bookkeeper, the time you would have spent on your accounts is freed up. You can then put that time to better use by using it to promote your business and get more sales.
2. The accounts will be done correctly – A qualified bookkeeper will know exactly how the accounts will need to be done. This means that if HMRC checks your accounts, they are less likely to find any mistakes and fine you.
3. Better idea of the financial state – A bookkeeper will keep your accounts up to date on a regular basis. This means that you can have a more accurate picture of the financial status of the business, instead of waiting until the end of the tax year.
4. Know who you owe and who owes you – If you are struggling to chase your clients for payment, or you are being chased, a bookkeeper can help keep your purchase ledger and sales ledger up to date. They will be able to send statements to your clients and get payments in. They can also make sure you are paying your suppliers on time.
5. When you have employees – As an employer, it is more important to make sure you are paying the employees & HMRC the correct amounts and on time. A bookkeeper will make sure all of the payroll calculations are 100% correct and that everything is filed with HMRC on time.

If you think you might need a bookkeeper or want to have a chat about how we can help, contact us on the Contact Us Page, our Facebook Page, or on Twitter.

Last year HMRC brought out a major change to the way payroll information was to be submitted to them.  Employers would no longer be required to submit P35s at the end of each payroll year, as the information would now be submitted each payroll period and be called RTI – Real Time Information.  This change is meant to help with the Universal Credit when it is fully implemented, as it provides HMRC with an exact picture of what an employee is earning.  I get a lot of different newsletters from various associations and companies, and the best explanation I have come across for RTI is on the Sage One Blog.  The article was written on January 24, 2013, but it gives a very comprehensive explanation on RTI and everything that is required.  Now some of this information may have changed slightly since the article was first written, but it’s still a very good article.

The article starts out with a definition of RTI and why it’s been created:

“Real Time Information (or RTI for short) is an HMRC initiative to improve the accuracy of PAYE, reducing the need to send out corrections for overpayment or underpaying and the possibility of fraud. Under new RTI legislation, employers will be required to submit information electronically via the internet to HMRC on or before they pay their employees instead of just once a year.”

The article goes on to explain what it means for each business and what needs to be submitted under RTI.  It contains very good descriptions of the four different types of submissions that an employer is responsible for making:

• Employers Alignment Submission (EAS)
• Full Payment Submission (FPS)
• Employers Payment Summary (EPS)
• National Insurance Number Verification Request (NVR)

Further into the article it talks about how a business can prepare for RTI compliance:

“The key to successful implementation and compliance of RTI is simple‚ don’t leave it to the last minute! Familiarise yourself with RTI by reading all the great information and guides on the www.sage.co.uk/rti website and don’t be afraid to ask your payroll provider how they are going to help ensure your compliance with RTI. Invest some time in carrying out an audit of your employee and payroll data to ensure its accurate and up-to-date, as incorrect information such as Name, Date of Birth, National Insurance Number and Gender are used to match your records against the records HMRC store.”

The article continues through various questions that all employers were asking after HMRC made their announcement:

• What happens if you don’t comply
• How the way you do payroll has changed
• The different steps of processing payroll – taking on new employees, dealing with the forms when an employee leaves when employees are paid irregularly
• How you pay HMRC outstanding PAYE and NI
• The payroll year-end

If you are using Sage One, the article also explains how it can help you to be ready for RTI.

To read the full article, go to the Sage One Blog.  The article was written by Paul Lancaster on January 24, 2013.

As a qualified bookkeeper with a level 3 certification in both manual and computerised bookkeeping, I am able to provide more services than a bookkeeper who may not be qualified.  There is also the added assurance that I have the backing of a recognised professional body and hold a valid practicing certificate.

I am able to:

• bookkeeping to Trial Balance
• cash flow statements
• credit control
• draft final accounts for Limited Companies
• maintaining fixed asset register
• payroll, employee records & year end submission
• preparation of final accounts for sole traders
• VAT Returns

In addition, to my bookkeeping qualifications, I also hold a diploma in payroll.  This can be a very useful service to offer to any sized business who has employees.  You can be confident that the correct procedures will be followed and that all of the necessary information will be filed with HMRC on time.

On top of bookkeeping and payroll, Ihelm Enterprises offers website hosting and technical support.  Our head of IT has 18 years experience with computers in general, 15 years commercial experience with server administration and 17 years of experience with managing and working with databases.  Our clients can be confident that their websites are in good hands.

If you would like to talk to us about how we can help with your bookkeeping, payroll or website hosting needs, please contact us via the Contact Us Page, our Facebook Page, or on Twitter or leave a comment below.