“Save time!” “It’s so easy!” “Anyone can do it!”

I know you’ve seen those repetitive adverts promising that modern accounting software will handle all your bookkeeping with just a few clicks – I’ve seen them too.

It drives me mad and makes me cringe because I’ve helped countless businesses recover from DIY bookkeeping mishaps and all because the business owner thinks they know what they’re doing. The software tells them so.

Tools like Xero are brilliant (I use them myself!), but they’re just that – tools. Having access to a professional kitchen doesn’t make you a chef, and having accounting software doesn’t make you a bookkeeper.

Here’s what I often see go wrong:

Those “simple” VAT codes? Choosing the wrong one can lead to costly mistakes on your VAT return. Just last month, I helped a client who had been incorrectly coding their exports for two years!

Bank reconciliation showing as matched doesn’t always mean it’s correct. One mismatched transaction can throw off your entire year-end accounts. And trust me, finding that needle in the haystack months later is no fun for anyone.

Then there’s the joy of payroll integration, construction industry scheme complications, and those annoying Making Tax Digital requirements.

HMRC isn’t known for their forgiving nature when it comes to mistakes.

Here’s the real value of having a bookkeeper: We’re not just data entry clerks.

We’re your financial early warning system.

We spot patterns, identify potential cash flow issues before they become problems, and help you make informed business decisions.

Plus, while you’re wrestling with trying to figure out whether that business lunch is entertainment or subsistence, you could be doing something you enjoy – running your business.

Remember, good bookkeeping isn’t about just making the numbers balance – it’s about giving you clear, actionable insights into your business’s financial health. And that requires more than just software – it needs expertise, experience, and professional judgment.

 

We’re always happy to chat about how we can help keep your books in perfect order while you focus on growing your business so, please drop me a message – I’d love to hear from you!

P.S. If you’re determined to DIY, at least let us give you some proper training first. Your future self (and your accountant) will thank you! You can view our training calendar here 
#bookkeeping #smallbusiness #businessadvice #accountingsoftware #xero