How to maximise profitability by outsourcing your bookkeeping

Profitability is a lot more than just revenue minus any expenses your business may have.

Sometimes, spending money WILL lead to making money.  And in our case, it can be done by saving you time, increasing revenue and helping to maximise the overall profitability and efficiency of your business.

Time is money

As a business owner, you will no doubt already know how much time you spend trying to do the company bookkeeping yourself.  If you put an hourly rate on that time, you can quickly see how outsourcing your bookkeeping can actually save you money.  And just in case you need to see the numbers to be truly shocked….

If you pay yourself £30 per hour and end up spending 5 hours a month on your bookkeeping, that is £150.  Multiply that over the year and you are costing your company £1,800 in bookkeeping costs. If you are the owner of a business then you are far more valuable than just £30 per hour so the actual cost of handling your bookkeeping yourself is far higher.

However you do the maths on this, outsourcing your bookkeeping is a savvy business decision that will free up your time and save the company money – helping you to maximise profits.

Monitoring price adjustments

In these turbulent financial times, there has understandably been large increases in the cost of goods sold.  However while these costs may change, a lot of businesses fail to adapt, adjust their own rates and prices – getting heavily stung in the process. Having a dedicated, outsourced bookkeeper will ensure that you keep on top of these price changes and spot rising costs or diminishing profits a lot sooner than you may have done.  In fact, for many businesses, the bookkeeping is only done when it needs to be done.  This can be incredibly dangerous for businesses and incredibly expensive for them.

Businesses have to file their taxes every year and if you out source your bookkeeping and ensure that it is running smoothly in the background, your end of year taxes are a far more manageable affair. And if HMRC phones one day demanding your financial statements, regular bookkeeping means you have access to everything they need at the drop of a hat. And that is if HMRC come calling. If you need to simply find archived information on your businesses finances, it can be found quickly and easily with effective bookkeeping services. If you keep on trying to handle your bookkeeping yourself, you may find things go in the opposite direction.

Did you know that Nine out of Ten businesses don’t know their income and expenses, financial trends or the reality of the company’s profitability.  This can kill your business!

Bookkeeping errors can lead to large outgoings in cash flow, late payments and expensive tax charges. What may seem like a simple bookkeeping error could in actual fact cause the business to fall deep into the red. And the most concerning issue is that if you are a restaurant owner doing your own books, you may not even know you are making these errors. It costs you valuable time and money when it could so easily be outsourced for a lot less than you might think.

There is a lot more that bookkeepers do for their clients than just completing the books.

And at Momentum Bookkeeping, we like to offer our customers a lot more.  Value and a professional service go hand in hand in our business.  And that is why we offer so much for our customers. So much so that we have put them into a list for you.

Day to Day Management Accounts

We can help you stay on top of your business accounts.  By keeping track of every sale or purchase in your business, our bespoke bookkeeping software can make it much easier to keep an eye on cash flow.

Maintain Up to Date Records

As your bookkeeper, we will ensure that your business records are kept up to date.  And if there are any inconsistencies, we will be able to spot them early and help you to sort them.

Prepare for Tax

Tax deadlines are fixed point in the year and for so many businesses that have fallen behind in their bookkeeping, the tax deadlines can so easily pass them by. We can help you to prepare for your tax deadlines and ensure that you don’t have any additional fines to contend with.

Prepare Financial Statements

We can prepare your financial statements including profit and loss statements, balance sheets and cash flow statements.

Prepare your books for an accountant

It is our job to ensure that your books are valid and up to date for when your accountant needs them.

Handle Accounts Payable

It is so often bookkeepers like ourselves that handle the payments on behalf of a business like yours.  From paying supplier invoices to dealing with petty cash and company expenses.

Process Payroll

We can assist you with payroll and the process of processing pay checks and tax payments for your employees.

Monitor cash flow

Making sure that your business does not run out of money is essential and we will monitor the balance of revenues to expenses and can even advise you on options to streamline your business to make cash more readily available.

Whether it’s getting paid by your customers on time, completing your VAT returns, processing payroll or submitting your annual accounts and tax returns, the demands on businesses can seem endless. And it’s almost certainly not why you got into the restaurant business in the first place. It is, however, exactly why we got into business. We do the things you avoid because where your business is concerned, you do the real work, we do the paperwork.

To find out more about how easy it is to hire a bookkeeper, what is involved and how we work for you, the easiest solution is to pick up the phone and talk to us.

From VAT returns and payroll services to custom built MySQL databases as part of our Bespoke Bookkeeping Services; from a once a year service (such as annual accounts) to a daily interaction service into your business; we can be as integrated with your business as you want us to be.