Bookkeeper vs. Accountant vs. DIY
A person doesn’t need to be qualified to keep accounting records but here’s some info to help you decide the way forward
- A bookkeeper will record the financial data of a business, while making sure that every entry is correct. Simple they’ll record and organise all financial data, at period that suits your needs or you, as a business owner, prefer.
- Accountants are mainly responsible for generally overseeing accounts and producing financial statements and tax returns that comply with the law. They are experts in all types of business tax ie. Corporation Tax, Income Tax etc. They will adjust entries made by bookkeepers at the end of business period.
- Information gathered by both a bookkeeper and an Accountant will help business owners make financial decision for the good of their business.
- DIY: It can be effortless to start bookkeeping, as you only really need to download a bookkeeping app. The more you do it yourself for your business, the easier the process can become. You can essentially take full control and be the bookkeeper for your own business so you don’t lose any visibility.
- The drawback of a business owner doing their own, is it takes away valuable time from running their business and the business owner may not know what they can or cannot claim as a legitimate business expense or what they need to include in their income. Incorrect financial info submitted to HMRC/Companies House may lead to substantial fines, which are definitely unwanted.