Market Research....can anyone help?

[emmatoye]

Hi all,

I wondered if any owners of small to medium sized businesses could help me out with some market research I am doing to put into my business plan. Are there any business owners currently using the services of a book-keeper? Can you tell me your reasons for choosing to use a book-keeper instead of choosing to complete your accounts in-house? Can you tell me what processes the book-keeper carries out for your business (Accounts to trial balance, VAT Returns, Payroll, Credit Control), your impression of the service that they provide?

Any comments are welcome, thanks,

Emma

[Rickwood Portpatrick]

Hi Emma
Looking at your question from the perspective of a former bank business manager, the reason the owners of many small businesses opt to use the services of a book-keeper or an accountant is not necessarily an inability to complete the paperwork themselves (although in many cases it is!) but a (possibly forlorn) hope that the person doing their book-keeping will do it in such a way as to minimise tax to be paid. Nearly all business owners have a phobia about paying too much tax as a result of their missing something they can claim.

Another reason for getting a 3rd party to do books is, believe it or not, some business owners don`t realise they are "allowed" to do their own, unlews they are a limited company.

As regards service provided, this will vary hugely depending on the experience and ability of the "book-keeper"

[Mike Lewis]

some business owners don`t realise they are "allowed" to do their own, unlews they are a limited company.

Fred, you're not suggesting are you that limited companies are not allowed to do their own bookkeeping? That's probably not what you meant, but that's how it might be understood.

Mike

[Rickwood Portpatrick]

Hi Mike

Thanks for that. Yes, what I really meant was that while they (limited companies) can do their own book-keeping and, indeed, prepare their own accounts I had thought there was a requirement for them to be audited by an accountant. It seems however that there is no requirment for auditing in the case of small companies

Having said that, I don`t think I have ever dealt with a Limited Company which didn`t have accountant prepared accounts!

[Mike Lewis]

Fred,

Yes, that's basically right. There are no specific legal requirements on limited companies as far as who does their bookkeeping is concerned.

Until a few years ago, all limited companies had to have their accounts professionally audited, but, as you say, that requirement was waived for companies whose turnover is below a certain figure. But all companies, regardless of size, have to file their accounts every year.

[Adventurelife]

Originally Posted by emmatoye

Hi all,

I wondered if any owners of small to medium sized businesses could help me out with some market research I am doing to put into my business plan. Are there any business owners currently using the services of a book-keeper? Can you tell me your reasons for choosing to use a book-keeper instead of choosing to complete your accounts in-house? Can you tell me what processes the book-keeper carries out for your business (Accounts to trial balance, VAT Returns, Payroll, Credit Control), your impression of the service that they provide?

Any comments are welcome, thanks,

Emma

Main reason is time. I can do my own books without to much hassle but if I am doing that I am not doing other things that generate business.

My book-keeper is in house rather than outsourced, she does everything with regards accounts.

If you have an ability with numbers and your business is just starting or small no problem by doing yourself but for a growing business the owners job is to work on the business not in it and book-keeping is not where he or she should be using their time.