Why Start A Bookkeeping Business

Bookkeeping is a process of recording data that relates to accounting transactions in the accounting books.

Transaction recording is the first integral part and foundation of the accounting process.

It involves the recording of financial transactions along with its storing and retrieving  for organizations.

This means recording  basic accounting transactions such as:

• Dealing in receivable
• Invoicing to the client
• Recording invoices
• Petty cash transactions
• Paying to suppliers
• Payroll processing.

Without recording proper accounting data, business  would have many difficulties in providing accurate information to the users of accounting information (I.e. Stakeholders)

Standards of bookkeeping

Single-entry bookkeeping

A process where all the financial transactions are entered once. It is basically a cash book which only uses income and expense accounts. However, Separate account records are maintained for receivables and payables.

Double entry bookkeeping

A process where the financial transactions have at least two entries, i.e. Debit and Credit. Where every debit entry must equal to the credit entry.

The advantages of having bookkeeping Service:

• Hiring a bookkeeping service can be cost effective for the organizations, i.e. by hiring or outsourcing part time staff.
• It helps an organization in taking financial decisions by providing a clear picture of the organization’s profit. It gives control over cash flow and helps in reducing tax liability.
• It provides regular reports and figures to the organization and help in keeping the process up to date.
• It gives peace of mind to the organization that an experienced individual or business is handling its transactions and is providing accurate and timely reports.

Process of bookkeeping:

It has following three steps:

1. Recording transactions by creating journal entry.
2. Posting journal entries into the ledger
3. Preparing financial statements

Starting a bookkeeping business:

With the evolution of the industry, the organizations need to cope with the market. The recording and retrieving and organizing of a financial transaction can not be done by any random person or non-accountant. Most of the organizations loose market because of their limitation in bookkeeping.Organizations that have lack of time seek to outsource the work that is monotonous or in which it lacks expertise in order to cut cost. With the growing business, it becomes difficult for organizations to handle their money and so require professional guidance.

Therefore, starting a bookkeeping business can be profitable for other small business owners that enjoy dealing with financial and accounting transactions.

These small business bookkeeping service providers can provide a variety of services that includes managing receivable and payable, payroll, reconciliation, income tax preparation and return filing, financial reporting etc.

Only an experienced person in bookkeeping and/or accounting can manage the financial transactions on professional level. Also, there is variety of bookkeeping software available that require expertise. High level of precision and accuracy is required while managing the accounts of the company. Therefore, independent bookkeepers are also in high demand even in an economic downturn. 

Pros & Cons of starting a bookkeeping business:

The key benefits of starting a bookkeeping business are:

• It has minimal start up cost. Most of the individual bookkeeper charges per hour. 
• It can be done virtually and target market can be broadened
• There is neither any certification for becoming a bookkeeper nor any training is necessary.
• Being specialized in any one accounting application can lead to increase in market compatibility.
• The work takes place on a regular basis and is consistent.

However, there are also some disadvantages and challenges that might bookkeepers in London face:

• High level of confidentiality, honesty and integrity is required while dealing with clients' data in order to keep it secure.
• Purchasing and updating of various bookkeeping softwares can be costly.
• There can be major liability issues.
• Must cope with the technology in order to access the client’s computer.

The best bookkeeping services in the UK are provided by the following:

• London Bookkeeping
• Rosemary bookkeeping
• Best bookkeeping
• Brant accountants and bookkeepers
• Cloud bookkeeping Warwick
• UK bookkeeping solutions limited

There are many other bookkeeping service providers that are helping organizations in organizing and maintaining their financial records and are providing accurate, quality, efficient and affordable financial and accounting services to the organizations. 

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WeAccountax.co.uk has an expert team of chartered accountants, chartered tax advisors and associate chartered accountants who aim to enhance the quality of accountancy services.Our online accountants and tax accountants providing accountancy services in UK, for the last twelve years to small and medium size organization.