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Bookkeeping and accounting aren’t the same

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Our business has been around for more than three decades, providing essential accountancy services. We are considered the top team working in bookkeeping Soho has. It is our job to provide a first class experience to everyone. The solutions we offer are both cost effective and high in value.

You may consider bookkeeping and accounting as essentially the same thing. It is all about organising numbers and ensuring the taxman is happy right? In truth, these are two individual branches of one tree. What we are going to do is talk about how they differ and why it makes a difference to companies.

Looking at bookkeeping

Bookkeeping SohoThis is the day-to-day job of ensuring your financial records are in order. It is making certain that your expenses have been correctly recorded. Also, it means having the receipts in the right place.

Great bookkeeping can function as part of credit control as well. You note which invoices have been paid and the ones that are overdue. What you are doing here is ensuring that you understand what is coming in and going out daily. It also ensures you have all the raw materials to file tax returns.

What about accounting?

This is what happens after the bookkeeper gets everything in order. Once you hand your books over, they can examine the figures. Then, they will offer an analysis that reveals how healthy your finances are.

On more of a practical level, accounting permits an inspection of your tax position. Also, the accountant will tell you how much you must pay to HMRC, and prepare and file your tax return.

Bookkeeping helps with cashflow

The difference between the two has vital practical distinctions in the roles they play in the day-to-day running of a company. Bookkeeping aids you in keeping track of the small details that accumulate to create a bigger picture.

A bookkeeper must be good at recording and monitoring all transactions. Then they have to ensure that the paperwork is in position. This way, you can see where outgoing payments and unpaid invoices will cause problems sooner instead of later.

Accounting allows you to make management choices

The analysis and reports you receive from your accountant mean you can examine emerging trends and patterns in your finances. It can aid you in seeing which way everything is going.

The accountant can also tell you if your company is heading for a slump or growing. It permits you to see the long range forecast and make top-level choice to enhance your company’s health. This kind of information is able to feed into various management decisions. They include sales targets and future spending.

Do you want cost effective bookkeeping in Soho?

At Brian G Lonis & Co, we tailor all our services to match your specific needs. We’re FFA qualified, which gives clients peace of mind when you work with us. Moreover, our people take the time to get to know your business to get a better idea of what you need. If that wasn’t all, our approach is no-frills, so you only pay for the services you require.

If you need the finest services for bookkeeping Soho has to offer, please contact us. We’re happy to provide advice and an idea of the fees for any service.