For small business owners, juggling the day-to-day running of a business alongside trying to keep on top of the financial administration is not always easy. How much time could you get back if someone else took care of monitoring the numbers and balancing the books? It could be more than you think!

Have you ever thought about working with a bookkeeper but aren’t sure whether it would be right for your business? Or perhaps you think your business is too small to benefit? I’m hoping to provide the answers to these questions and a few more in this blog.

But first it’s time for a reality check, I know you love being your own boss (we all do!) but how do you feel about the admin that comes with it…

– Do you put off doing the books because you don’t enjoy it?

– Do you always do the books in a rush as you don’t really have time?

– Do you worry that you’re missing something or making mistakes?

– Do you often feel out of your depth or overwhelmed with doing the books?

If your answer was yes to one or more of these, then your business could benefit from the support of a bookkeeper, no matter what size it is.

 

When is the right time to hire a bookkeeper?

There are a few different schools of thought on this one, but the simple answer is, there is no right time. Bringing a bookkeeper in when a business is quite new can be a great way to embed core systems and records from the early days, creating those good habits from the start.

But equally a more established business can also reap the rewards of having a bookkeeper whip their back office into shape and get things running more smoothly.

Uncertainty can creep in with both types of business. New business owners often don’t feel confident about outsourcing in the early days, keen to keep their overheads as low as possible. While established business owners may feel that their accounting records and habits are too ingrained to change or there is too much involved in starting over.

My advice to both is that change is possible and there is always room for improvement. The beauty of bookkeeping is that there is no one-size fits-all approach, so the support you get will be tailored to your business.

 

Is my business too small to use a bookkeeper?

This is a question that comes up a lot from potential new clients and stems from the perception that a bookkeeper is only useful once a business grows to a particular size or has over a certain number of employees.

The honest answer is that the need for a bookkeeper is not related directly to the size of your business. Looking at the practicalities of your situation is a much better guide to deciding when the time is right, and this will be unique to your business.

Some helpful questions to ask yourself would be:

• are you keeping on top of your record keeping each month?
• what is the cost of the time you’re taking to do the admin?
• do you understand what your numbers are telling you?
• do you plan to grow or expand your products/services?

 

The benefits of working with a bookkeeper as a small or micro business

Both small and micro business owners can gain substantial benefits from working with a bookkeeper, so don’t rule yourself out just because you’re a business of one!

Here’s how a bookkeeper could make a big difference to your small business:

1. Consistent financial accuracy

Consistency is the magic ingredient here. Certified bookkeepers are highly trained in maintaining clear and accurate financial records, so you can relax knowing all your incomings and outgoings are being recorded monthly without any blood, sweat and tears on your part!

2. Super organised record keeping

You might be a whizz on the spreadsheets, but nothing beats a structured system that records all your transactions, income and expenses and joins the dots between them.

This increased visibility of your numbers also makes audits and reviews a breeze.

3. Valuable financial analysis and insights

Assessing the overall health of your business quickly can be a challenge, which can get in the way of new opportunities. A bookkeeper can provide valuable insights, reports and trends to help you make informed decisions at the right time.

4. Better budgeting and forecasting

Using your financial history, and with a deep understanding of your business, a bookkeeper can create budgets helping you plan more effectively, and forecasts that track how the business is performing. This data can be crucial when making strategic decisions about growth or change.

5. Stress free annual accounts and tax

A bookkeeper makes sure that your business complies with tax laws and regulations and that you don’t miss any important deadlines. By keeping all your financial data up to date in real time, they also make year-end less of a daunting process and can give you visibility of your tax liabilities – a big win!

6. Helping you secure funding or investment

Having up-to-date and detailed financial records can be a big positive when applying for a business loan, grant, or embarking on partnerships with other businesses, speeding up the process and helping you achieve the desired outcome in less time.

7. Saving you time

This one is my personal favourite! Handling all the financial tasks in your business can be complex, frustrating and incredibly time-consuming (and your time has a cost). A bookkeeper will give you precious time back to focus on other areas of the business.

8. Helping you to grow

As a business grows so too does the burden of the associated financial tasks. A bookkeeper can create systems that are ready to scale when your business is, and help you spot those golden opportunities for growth by regularly analysing your numbers.

9. Advice from a professional

A certified bookkeeper will have a thorough understanding of financial best practices. Equipped with this knowledge they can become the perfect right-hand person in your business, providing advice on cost-savings, cash flow and other financial strategies.

 

Common objections to hiring a bookkeeper

Working with a bookkeeper is an ongoing investment, so it’s only natural for small business owners to question whether they really need one. These are the common objections that I hear and my suggestions on how to look at them from a different perspective.

 

I can’t justify the cost of outsourcing.

Outsourcing can feel counter-productive but by using that time on income-generating tasks instead, you could afford the bookkeeper and increase overall revenue at the same time.

 

I don’t have the time to manage a third party in my business.

This one is short term pain for long term gain! Spend a small amount of time now onboarding an experienced bookkeeper and reap the rewards of all the time you’ll save in the future.

 

I’m worried about finding the right person.

Sharing your sensitive business info with a stranger can be daunting so ask people you trust for recommendations. Also consider personality as much as skills when making your choice as you’ve got to like working together!

 

I’m concerned about losing control of my information.

Letting go of control is tricky but if you can find a sympathetic bookkeeper who can manage the handover in a straightforward way this can help to reduce the fear factor. A good bookkeeper should work in partnership with you, not in isolation.

 

If I can do it well enough myself, why would I pay someone else to do it?

Yes, you may be competent, but how long are you spending and what else are you not doing because of this? By switching your attention to income-generating tasks instead, the cost can often be offset.

 

Why Making Tax Digital might impact your small business needs

Making Tax Digital for Income Tax (aka MTD IT) is what it says on the tin really! From as soon as April 2026, individuals earning income from self-employment and/or property rental may have to keep digital accounting records and make quarterly submissions to HMRC.

For many small businesses this could mean it’s time to embrace digital accounting software. This will require time and effort in learning to use the new system and ensuring that figures are put into it at the right times to meet the deadlines.

For many this may be the moment they decide to seek extra help from a bookkeeper to get ready for MTD IT and learn how to follow the new processes.

Here are the key facts you need to know:

• MTD IT will be phased in from April 2026
• Annual turnover of £50k or more will start from April 2026
• Annual turnover of £30-50k will start from April 2027
• The use of digital software and keeping digital records will become mandatory
• A summary of income and expenditure will be submitted quarterly via the software
• Where multiple trades are being carried on a submission will be required for each one
• Submitting accounts only once per year will no longer be allowed

You can find more info here https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

 

The unexpected extra value that bookkeepers can add

The best thing about working with a bookkeeper has to be the extra (and often unexpected) benefits they can bring to your business. We don’t just record the numbers; we analyse the detail and use this to steer your business in the right direction and help you hit your goals.

Here are just a few of the extra benefits you could enjoy:

• A permanent (and reliable) accountability partner
• Ongoing support with planning and strategy
• Someone to bounce new ideas around with
• A trusted advisor when making important decisions/changes
• Tapping into their personal business and financial expertise
• Streamlined back-office systems and processes
• Spotting opportunities for growth/expansion and reducing costs

 

Working with Purple Orchid Bookkeeping

Over the years I’ve gathered a lot of valuable insight into what it takes to run a successful business, both from my own point of view and my clients’. This knowledge feeds into everything I do, enabling me to not just show you the numbers, but also make recommendations, offer advice and guide you on your business journey.

I take time to explain things in a simple way (no jargon allowed here) and I’m licensed and regulated by the Institute of Certified Bookkeepers, so you know you’re in safe, experienced hands.

When you find the right bookkeeper they can become an integral part of your business. Leveraging their expertise and getting maximum value from the relationship leads to better financial management and strategic decision-making, which is always going to be a good thing for your business!

If you’re still on the fence and would like to ask more questions, I’m always happy to have a chat with no obligation!

Book a free discovery call today: https://calendly.com/jq_bookkeeping/discovery-call