Bookkeeping FAQ
Do I need a bookkeeper for my small business?
Not legally required, but a bookkeeper keeps your records reconciled and current, which your VAT return, year-end accounts and tax bill all depend on. Here is when to DIY and when it is worth hiring one.
A quick test
DIY or hire? It comes down to volume and time
You can probably DIY if...
- You have very few transactions each month
- You are comfortable with spreadsheets or basic software
- You have the time to reconcile your bank feed regularly
- Your business has not registered for VAT or Making Tax Digital
A bookkeeper is worth it if...
- Your bank feed has not been reconciled in weeks or months
- You are spending evenings on data entry instead of your business
- You need to be Making Tax Digital compliant
- You want accurate numbers to make decisions, not a guess
Questions
Bookkeeping, your questions answered
Do I need a bookkeeper for my small business?
Not legally, but most growing businesses benefit from one. A bookkeeper keeps your bank transactions reconciled, your records tidy and your numbers current, the foundation your VAT return, year-end accounts and tax bill all depend on. If your transactions are very few and you are comfortable with software, you may manage without one for a while. Once volume grows or you register for VAT, a bookkeeper usually pays for itself in time saved and errors avoided.
What does a bookkeeper actually do?
A bookkeeper reconciles your bank feed, categorises transactions, files receipts against them, chases missing paperwork, and keeps your sales and purchase ledgers current, usually in cloud software such as Xero, QuickBooks or FreeAgent. This gives you an accurate, up-to-date picture of what your business made and spent, which everything else, VAT, accounts, tax, is built on.
Can I do my own bookkeeping?
Yes, if your transaction volume is low and you are disciplined about reconciling regularly. Many sole traders manage their own books when starting out. The risk is falling behind, spreadsheets are not Making Tax Digital compliant, and catching up months of unreconciled transactions later costs far more time than staying on top of it would have.
What is the difference between a bookkeeper and an accountant?
A bookkeeper handles the day-to-day recording of transactions, reconciling the bank feed and keeping your books current. An accountant uses those books to prepare your accounts, calculate your tax, and file your returns. Many small businesses use one firm for both, so nothing is duplicated and your numbers flow straight through.
How much does a bookkeeper cost?
Cost depends on your transaction volume and how often you want the books done, which is why most bookkeepers, including us, quote a fixed monthly fee after a quick chat rather than charging by the hour. For many small businesses it is a modest monthly cost that pays for itself in time saved and cleaner tax figures.
I am behind on my bookkeeping, is it too late to get help?
No. Bookkeepers regularly take on businesses with months or even years of catch-up work, reconcile everything, and then keep it current going forward. The sooner you get it sorted, the less it compounds, especially if a VAT return or year-end is approaching.
Related: bookkeeping basics for small business · accountant vs bookkeeper
Ready to hand your books over?
We reconcile your accounts every month in the cloud, so you always know where your business stands. Fixed fee, no hourly billing.