bookkeeping myths

Dispelling the Myths of Bookkeeping

There are so many bookkeeping myths.

Let’s face it, for small business owners, they’re an expensive luxury. After all, they only input data, and you can get accounting software for that – right?

That’s once of the biggest bookkeeping myths

Oh boy, you’ve been listening to those myths.

It’s time to set the record straight.

1. Bookkeepers just do data-entry

Yes, bookkeeping does involve a lot of data entry, but there’s a lot more than that. Bookkeepers reconcile accounts, find and correct discrepancies, produce financial reports, chase payments and refunds and help you predict the future.

OK, that last one might be a bit of a stretch, but there’s no denying their financial reporting will help you make more informed decisions to help you grow your business.

2. I don’t need a bookkeeper; I can do it myself.

OK, if you have the time and know-how to reconcile accounts, chase payments, produce financial reports, keep your accounts up-to-date and learn how to use accounting software, then, yes, you can do it yourself.

But why would you? Your expertise is running your business. If you get caught up trying to keep your financial records in order, your business will suffer. You can read more about the 4 signs of needing to hire a bookkeeper here.

3. I don’t want to give up control, and they scare me

Let’s deal with the scariness first. You may be embarrassed about sharing the state of your finances with someone else and being judged. But remember, bookkeepers are professionals and want to help you succeed. There’s nothing to fear.

As for the giving up control bit granted, it can be unnerving letting someone else see your data and financial information. However, professional bookkeepers build their reputation on trust and security. Plus, you’re not losing control; you’re gaining greater control and insight thanks to the financial reports they will produce.

4. Account software makes bookkeepers redundant

There are a plethora of adverts extolling the virtues of accounting software. The overall message seems to be ‘you can do it yourself.’ But have you tried to use the software?

Understanding how to use it and how to get the most out of it is essential. Unless you also happen to be a qualified bookkeeper, it’s unlikely you’ll get the best out of it. Posting one transaction in the wrong place could cause all sorts of problems for your business.

You’re a professional, so make sure you use professionals to maintain your financial records properly.

5. I’ve got an accountant, so I don’t need a bookkeeper

Wrong. Yes, accountancy builds on the work of bookkeeping. Still, bookkeeping is vital to ensure the accuracy and completeness of financial records before your accountant uses that information to analyse, audit and address the bigger accounting picture.

6. Small businesses don’t need bookkeepers

It’s a mistake to think bookkeepers are only for big companies.

Whether you’re a sole trader or a small company, the chances are that ‘doing the books’ is a task you put off. Let’s face it, it’s tedious, and you’d be much more profitable spending your time making money than doing the books.

That’s why outsourcing to a bookkeeper is a smart choice, regardless of the size of your business.

Timewise VA works with small-to-medium-size businesses to make their working day that little bit easier. Call the team on 0161 211 9837 and be gone with those bookkeeping myths.

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