Ever wondered, “What does a bookkeeper do all day?”
In this month’s blog, we’ll take you through a typical day in the life of a busy bookkeeper, including their primary duties and responsibilities. Bookkeepers work with many types of clients, so the role is demanding yet varied and engaging. For example, we work with hairdressers, IT Contractors, specialist trades, builders, dog groomers, factories, and SMEs – the list is mixed, and extensive.
Every customer works in distinct ways, so there’s plenty of diversity and every day is different. A fact that may surprise you.
However, one thing unites all of the businesses that Angel Bookkeeping supports: the enormous significance of meeting deadlines. Submission dates govern our working lives for monthly, quarterly and annual returns.
And we never miss them.
Plus, there’s a lot of “added value” going on in how we advise people, too, which you’ll notice in this article.
Equally, a bookkeeper needs to be ultra-organised, with awesome attention to detail. The charge is heavy yet enjoyable. Satisfying, even.
Bookkeepers Don’t Wear Capes or Save the World
Yet, in many senses, they are the unsung heroes of the financial world.
Without excellent bookkeeping, high-standard accounts are not possible. Therefore, managing and growing a business can become hugely difficult. Also, a professional bookkeeper makes a big impact on a company – and not just by improving the quality of financial reporting. They will ensure that your records are up to date and, equally, that they’re accurate.
Plus, they can offer you a complete understanding of your financial position, with powerful information to help you make informed strategic decisions. There’s a lot going on, and all of it is good.
In effect, by keeping the money side of things in order, they take the pulse of a business.
What Does a Bookkeeper Do?
We know that poor-quality foundations in construction will most likely lead to structural issues. A similar concept applies here: Your bookkeeper will enable you to keep your finances solid, and intact.
They do this by monitoring different accounts, transactions, and reports. Bookkeeping involves organising, collecting and storing financial records. Likewise, they empower a company owner to identify trends, build budgets, and plan for the future.
A Typical Day at Angel Bookkeeping
Generally, with early-vibe energy and a much-needed cup of coffee, we start early. A prompt start helps us to steal a march on the day and get organised by updating clients’ financial records such as invoices, receipts and bank statements.
Things are much more efficient if we and our client work in the “cloud” – although bags of receipts aren’t uncommon. We work with Sage and QuickBooks
Here are the core aspects of what we do:
Data entry. Broadly, this is about recording financial transactions and balancing the books; money coming in and going out. Using software, we’ll record each purchase and sale and assign that transaction to the correct account in a customer’s ledger.
There may be more than one source; however, with cloud accounting software, they’ll be linked together so that the information flows into a single source.
Bank reconciliation. This is a regular cross-referencing of a client’s books against bank statements and other documents to confirm their accuracy. In other words, bank reconciliation ensures that all transactions are posted correctly to the accounts.
Financial reports. These reports are highly effective – practical and positive – and are a key benefit. Accessible in real-time, they are a snapshot statement of a company or individual’s financial position. Usually, they include essential information such as:
A balance sheet – a current financial status, and whether the business has gained or lost value.
Cash flow – how much cash has been earned.
Profit and loss – whether a profit was made, or a loss incurred.
Aged receivables – which clients a business needs to chase for payment.
Aged payables – how much an organisation owes, who they owe it to, and when it was due.
In addition to monthly reporting, we can assist with end-of-year reporting.
Did You Know?
- With over 15 years’ accounting experience, Angel Bookkeeping can prepare your year-end accounts. We often complete returns for limited companies, partnerships and sole traders, and it’s our pleasure to do so; the DIY approach, unless a business is highly clued up on accounting – is not to be recommended.
Just a quick note: contact us early. Earlier than you think you need to. Avoid the January rush!
Many of our clients are in the construction sector. If you’re a builder, you’ll already know that an additional “layer” of tax reporting is involved – so again, don’t Do It Yourself. Angel Bookkeeping has excellent knowledge of and skills in the Construction Industry Scheme, and we’re happy to take over your financial affairs to make things easier.
- We also offer outsourced payroll services that enable you to focus on what you do best: running your company and supporting customers. Spending time on the tasks that make you money, rather than the intricacies of payroll, will ensure that your staff get paid on time – and with complete accuracy.
Time Flies Into the Afternoon. What Else Do Bookkeepers Do?
After some fresh air and a quick break for lunch, we’re back at our desks, ready to pick up where we left off. Angel Bookkeeping takes on new clients regularly – from start-ups to more established businesses.
Working with Start-Ups
If you’re new to the world of the self-employed and our core service offering, we can set you up on Sage or QuickBooks for streamlined cloud accounting. In addition, we’d be happy to have monthly catch-up calls to discuss how the business is going.
Working with SMEs
Small to medium enterprises are the lifeblood of the UK’s economy. Angel Bookkeeping will document all your invoices, receipts and expenditure for a simpler workflow; we’ll reconcile your bank accounts, deliver tailored financial reports, and advise on cash flow and tax liabilities.
Plus, let’s organise a monthly business review to offer input on strategies to save you money and support growth.
And let’s not forget:
VAT
Our busy working days frequently involve dealing with the headache that is VAT. Or rather, removing it entirely. It IS fiddly, so let us do it. Not only do we register clients for VAT, we’ll prepare accurate returns and submit them to HMRC. Look out for VAT reminders from us, and we’d be happy to offer you all the advice about Value Added Tax in general.
So, What Does a Bookkeeper Do All Day?
We hope you’ll agree that the answer is: actually, quite a lot.
In summary, we have high levels of concentration and love working with numbers. Do YOU love numbers? Maybe not. There’s no need to. Get in touch for more information from Angel Bookkeeping.