Frequently Asked Questions
What is bookkeeping?
Bookkeeping is the recording of financial transactions that move through accounts linked to a business or self-employment. Transactions include buying, selling, purchase orders, receipts and payments made by an individual person or organisation in relation to business.
Unlike accountants, bookkeepers set up and oversee day-to-day record keeping your business. We then monitor the accounts, ensuring they are always compliant and up to date.
Do I need a bookkeeper?
Maintaining your books while running a business can become a very time consuming and frustrating task. A good bookkeeper can manage your accounting systems, improve efficiency and spending, as well as providing you with real-time reports for you to make better financial plans and decisions about the company moving forward. You can rely on our accounting expertise and expect that accounting policies are always followed.
Bookkeeping can be done by business owners themselves if you are confident enough to do so, however we would highly recommend you or your team undertake some training first.
Should I outsource my accounts or hire a bookkeeper?
Hiring a staff bookkeeper can be beneficial for some SMEs. When considering whether you should hire a bookkeeper or outsource the task it is important to consider the pros and cons for each scenario.
Operating as an outsourced bookkeeper, we provide all the advantages of a bookkeeping department at a fraction of the price. You would be getting the expertise, experience, and know-how of our entire team, without having to hire a whole team yourself.
I already have an accountant – can you work with them?
Yes, we have worked with many business’ and their accountants. While we and your accountant may share common goals, we undertake very different roles and activities for your business.
How long will I need a professional bookkeeper and/or accountant?
Bookkeeping and accounting are both ongoing processes. Whether you are self employed or a business, you will need to submit accounts and keep on top of the legal requirements of being a sole trader or business which includes the day-to-day bookkeeping.
Should I invest in accountancy software?
With the government’s campaign to Make Tax Digital, bookkeeping and accounting is only going one way. We would always recommend moving from a paper-based system to a cloud accounting system as soon as possible. Not only will it help to simplify your accounting, it will also save you a lot of time and money in the long run.
There are a range of software options available to SMEs. Some of these are more costly than others. Please contact us today and we would be happy to help find you a suitable and cost-effective cloud accounting software.
What do bookkeepers generally charge?
Our prices start at £25 per hour. This depends on the service required.
What areas do you work in?
We work with numerous clients throughout Essex, Hertfordshire and North London. Many of our clients are based in Essex. Areas we service include; Chelsmford, Maldon, Witham, Harlow, Writtle, Danbury, Braintree, Billericay, Basildon, Colchester, Boreham, Broomfield, Great Baddow, Great Waltham, Hatield Peverel, Heybridge, Ingatestone, Pleshey, Springfield, Woodham Ferrers, Brentwood, Basildon etc.
What are your main services?
We provide a full suite of bookkeeping and consultancy services. Some examples of which include; bookkeeping, Payroll, PAYE and CIS management, monthly reporting, bank reconciliations, managing invoices and receipts, credit control and debt chasing, VAT returns, conducting financial reviews, bookkeeping and software training and financial consultancy.
Will I be charged for my initial consultation?
No, nothing! We provide all our clients with a free initial consultation which carries no obligation or hidden fees.
What is the difference between a limited company and self-employment?
We get asked this question a lot by our clients. The main difference is the legal liability that each kind of business carries. A limited company is a separate legal entity from its shareholders and directors, whereas the business and personal affairs of self-employed people are treated ‘as one’ for tax purposes.
If you would like some advice on whether you should register as a limited company or a sole trader, please contact us.
When do I have to register as self-employed?
If you start working for yourself, you are classed as a sole trader. This means you are self-employed – even if you have not yet told HM Revenue and Customs (HMRC).
You can be both employed and self-employed at the same time, for example if you work for an employer during the day and run your own business in the evenings.
It is important to contact HMRC and let them know what your employment status is.
To find out more about self-employment visit the Gov.uk website https://www.gov.uk/working-for-yourself
What is the deadline for submitting my tax return (self-assessment)?
When filing paper returns the deadline is the 31st October and when filing returns online the deadline is the 31 January.
For more information on VAT return deadlines, self-assessment and corporation tax dates, please click here.
What is corporation tax?
Your business is liable to corporation tax on any profits if you are a limited company, co-operative or other unincorporated association, or an overseas business with a UK branch.
Taxable profits for Corporation Tax include the money your company or association makes from:
- doing business (‘trading profits’)
- investments
- selling assets for more than they cost (‘chargeable gains’)
The current rate of tax is 19%.
Visit the Gov.uk website to find out more: https://www.gov.uk/corporation-tax
When do I have to pay corporation tax?
Companies generally need to pay their corporation tax nine months after the company’s year ends.
When do I need to register for VAT?
A business MUST register for VAT if its taxable turnover for any consecutive 12-month period exceeds the VAT registration threshold. The current VAT registration threshold (from 1 April 2017) is £85,000 but this could change in the future.
You can also voluntarily register for VAT if you are below this threshold.
If you would like some advice on any aspect relating to your business VAT or registration, please contact us here.
When do I have to register as an employer?
You normally need to register as an employer with HM Revenue and Customs (HMRC) when you start employing staff, or if you are using subcontractors for construction work.