When creating a start-up or taking over an existing brand, you’ll be faced with the challenge of dealing with small business finances. The simple solution? Hire a professional to take on the work so you don’t have to worry.
But what are the differences between payroll services and bookkeeping services? As a team that offers both, Angel bookkeeping in Haywards Heath is here to weigh in. Let’s take a look at the details so that you can understand more about the services you’re looking for.
What Is a Bookkeeping Service?
Bookkeeping is the regular maintenance of records that display a business’s financial transactions. It involves preparing financial statements like income statements, cash flow statements, and expense reports. Essentially, these services track all of the money moving in and out of your business (your cash flow).
Professional bookkeeping guarantees that your entire record system is correct, up-to-date, and complete, following government guidance for complete legal compliance.
Accuracy is vital in bookkeeping, so bookkeepers often use accounting software to save time.
When working with a team of bookkeepers, you can expect them to:
- Understand the intricacies of professional accounting
- Understand government regulations around record keeping and tax
- Have excellent precision and accuracy
- Opt for a detail-oriented approach
- Have excellent administrative proficiency
What Is a Payroll Service?
Payroll is the process of regularly paying employees for the work they do. Most companies prefer to outsource payroll and bookkeeping to professionals, taking the task off your hands and ensuring your team is paid on time, every time.
Your payroll team will handle all aspects of staff payments, including managing payment schedules, ensuring tax compliance through the Pay As You Earn (PAYE) system, and adjusting wages according to employee benefits and pension payments.
Payroll tasks also tie into bookkeeping in terms of record-keeping, with the need to gather and record data to comply with tax regulations.
What’s the Difference Between Payroll and Bookkeeping?
To summarise, the key difference between payroll and bookkeeping lies in their definitions:
- Payroll is the process of paying employees for the work they do.
- Bookkeeping is the process of recording and reporting all financial transactions within a business.
If you want to ensure you have solid systems to take care of each of these, hiring an expert offering specialised services is a great place to start. Not only can they carry out many of the tasks for you, but they can also help you better understand your business finances and how record-keeping can improve your future business decisions.
Hire Payroll and Bookkeeping in Haywards Heath
At Angel Bookkeeping, we offer professional bookkeeping services for our clients in Haywards Heath and across Sussex. We make managing business finances a breeze by organising and recording invoices, monitoring expenses, and providing customised financial summaries. We can also take care of your payroll, taking the stress from your shoulders for a streamlined business.
Interested? Book a free 20-minute call to learn more about how we can help your business.