Cloud Bookkeeping Processes
A Cloud Based bookkeeping business, Bookkeeping Synergy partners with clients and strives to efficiently produce accurate bookkeeping alongside the supporting services of VAT Returns, Payroll & Auto-Enrolment and Management Information reporting. We encourage our clients to work with us in drawing up Business Plans and annual budgeting – these tools are a road map that give purpose and direction and help keep focus on the target.
Bookkeeping is the method by which a business records its financial transactions. It is a single common, universal language and the rules are the same worldwide – tax and legislation may be different but the basics of bookkeeping will be the same. At Bookkeeping Synergy we deliver accurate, well presented books on time, every time. Our team is professional and reliable and we are regulated by the Institute of Certified Bookkeepers for the purposes of Money Laundering Regulations and are registered with the Information Commissioners Office. We seek to offer our clients the very best service in every aspect of bookkeeping.
We ensure our staff adheres to our strong moral code as laid down by The Institute of Certified Bookkeepers, and work with integrity and transparency.
We remain open and accessible to our clients’ contributions, questions and communications and provide a varying skill set, with superior customer service, and in a friendly and professional manner. We continually strive to keep up with today’s fast world of technology which has been changing the face of bookkeeping and the world of accounting in the way that we partner with our clients in the bookkeeping process and the Management information presentation. We must retain a place in the revolution of cloud-based software, digital storage and archiving and to this end Bookkeeping Synergy has chosen Xero software as its preferred software. We will migrate information from your present accounting software to Xero and will assist in training and setting up office systems to streamline your bookkeeping processes.
Which Cloud Software?
We are passionate and committed to remaining relevant and as such, we have kept up-to-date with the latest technologies. We live in a digital age which is impacted daily by the influence of mobile, cloud, and social networking. To survive we must innovate. The day of heavy, clunky software is over. Choose ‘light’ now! This software is available whether at home, or on the train, or in the office, or on your PC, or on the phone or on a tablet! Amazing – let’s move with it.
Our Bookkeeping Process:
PROCESSING SALES INVOICES
PROCESSING PURCHASE INVOICES
Purchase invoice are processed quickly by either emailing them to us (or having your suppliers do this) Clients may also forward emailed invoices directly to Receipt bank/Datamolino/AutoEntry or Hubdoc for processing. All invoices are saved as attachments to the transaction – again we are saving time, space and the weight of archiving. As long as the attachment is readable, the paper invoice may be shredded.
Processing expenses can be managed easily and efficiently. Expenses can be any costs which employees have incurred, away from the office, in order to complete their work, for example, food, travel expenses, purchasing of stationery etc. When a client uses Datamolino/Receipt Bank/AutoEntry or Hubdoc to integrate receipts and invoices into Xero, they have the added facility of being able to take a photo shot of their receipt while on the move which will automatically be sent to Receipt Bank. No need to keep this receipt! Our service to our clients includes posting receipts & processing payment runs of purchase invoices and expense claims.
MONTHLY JOURNALS FOR PAYROLL, AUTO-ENROLMENT PENSIONS, PREPAYMENTS AND ACCRUALS
BANK ACCOUNT RECONCILIATION
CONTROL ACCOUNT RECONCILIATIONS
Registering for Value Added Tax (VAT) can be daunting because there are numerous VAT Schemes (Standard or Accrual Scheme, Cash Accounting, Flat Rate Scheme, Retail Scheme, Margin VAT Scheme) – let us talk through the options with you. Currently, when a business is close to a turnover of £85 000 in any 12 month period, they are required to register for VAT. However this registration is voluntary for businesses whose turnover is under that amount. VAT returns are usually computed and filed with HMRC on a quarterly basis but some businesses will file monthly or even on an annual basis. Business owners are now required to sign up to Making Tax Digital (MTD) at the time of registering for VAT. Once a business is registered for VAT, HMRC will send a notice by post which will tell the business owner when their VAT Return is expected by HMRC. At the time of engagement we offer a service of becoming HMRC Agents for both filing returns and discussing VAT affairs. It is important to note that even if a company is not trading but has registered for VAT that a NIL VAT return is required each quarter.
An effective system of Credit Control for the collection of money on overdue invoices is a very important business process. To establish this system, a health check on engagement processes with customers will be undertaken to ensure that our clients’ customers are fully aware of their responsibilities to pay within the agreed credit terms and that they are aware of the Terms and Conditions attached to the service or product purchased. There is a function in Xero – Invoice Reminders- which can be set up to automatically send out emails to customers whose payments have not been received by due date. We also use an Add-On called GoCardless very effectively. They collect recurring payments through Direct Debit and integrate with Xero accounts.
Payroll is often the largest overhead paid out by a business each month. So it is vital that an efficient, accurate Payroll run on the date required by a business with all the necessary adjustments and additions, is available. In April 2013 a system of Real Time Information (RTI) was introduced to all UK payrolls for filing with HMRC. This required payroll bureaux to file PAYE/NI returns monthly instead of the previous annual returns. This system is now fully operational. Bookkeeping Synergy uses Xero software for their cloud software and therefore uses the Xero Payroll function. Each employee is given a login to My Payroll where they can view/download their payslips and any other notification required ie P60 at the end of the tax year or P45 when they leave that particular employment.
All businesses are now required to register with The Pension Regulator for AutoEnrolment. www.thepensionsregulator.gov.uk. What is Auto-Enrolment you ask? Auto Enrolment is a government initiative and requires every employer of staff normally working in the UK to put their qualifying staff into a workplace pension scheme and to make contributions towards their employee’s pension. A workplace pension is a savings plan that is arranged by your employer to help you put money aside for later in life. It is also known as an occupational pension or a work-based pension. Typically, the employer will also contribute to the pension scheme for you, and so will the government in the form of tax relief.
Bookkeeping Synergy partners with Smart Pensions to offer pension services https://www.autoenrolment.co.uk/brochures
Monthly Management information is the cherry on the cake! and vital to providing Directors and Managers with the financial information they need in order to make informed business decisions. We don’t drive blindfolded. We need to see where we are going – the same applies to your business. Management information shows the direction the business is taking, where the overspends are showing up against the budget, and where further development could possibly take place. The information produced must be accurate and as up to date as practically possible which means that the day to day bookkeeping should be accurate and up to date. Do you have a Fixed Asset register? Are you calculating Depreciation each month? Are all journals posted and accurate? Let us help you get this up to date.
Bookkeeping Synergy bookkeepers will teach you how to read your Balance Sheet and Profit & Loss account so that you have a full understanding of your accounts – which transactions are posted to the Balance Sheet and which transactions form part of the Profit & Loss account.
END OF YEAR ACCOUNTS
Bookkeeping Synergy will produce End of Year accounts for sole trader and partnership businesses and we will work with our Accountancy colleagues to complete Limited Liability Partnership and Limited Company businesses.
BUSINESS PLANS, CASH FLOWS AND BUDGETS
Do you remember the story about Alice in Wonderland faced with making a decision about which path she should take? The Mad Hatter asks her where she’d like to get to. Alice retorts that it doesn’t really matter. So the advice she is given is that it doesn’t really matter which path she takes. Please don’t be a business that doesn’t mind which way it is going! Let us assist you with a business plan and a budget as a starting place for taking control of the direction you grow your business. Sometimes it will be the Bank who will ask for a Business Plan and a three year Cash flow Forecast if a loan is being requested.
- BUSINESS PLANS: A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts. A business plan helps you to:
- clarify your business idea
- spot potential problems
- set out your goals
- measure your progress
- CASH FLOW FORECASTS: This is an estimation of the money you expect your business to bring in and pay out over a period time. It should reflect all of your likely revenue sources like sales or other payments from customers and compare these against your likely business expenses like supplier payments, payroll costs, premises expenses and tax liabilities. The starting point will be your current Bank balance and the end point will be an estimate what your Bank balance will look like if the anticipated income is realised and expenditure is kept to what has been estimated.
- BUDGETS: The process for preparing a monthly budget for your business requires collecting information and following some simple steps. Firstly, list all sources of monthly income or revenue. These will include sales and interest from investments. Secondly, list all your required, fixed expenses, like payroll, rent, utilities, phone, IT. These are payments you must make every month, even if you have less income than expected. When you are estimating income and expenses, estimate income low and expenses high. In other words, be pessimistic about both income and expenses. Then when something happens (and it always does), you can be prepared.
WHAT IS THE DIFFERENCE BETWEEN A BUDGET AND A CASH FLOW FORECAST? A budget starts with anticipated income whereas a Cash Flow Forecast starts with the actual current bank balance at the start of the trading period.
If you could do with some help on this please give us a ring, we’d love to help you.
An annual self assessment return is needed from anyone who is self-employed or who has received any taxable income from outside their full or part time jobs. This includes income from inheritance and rentals. If you are registered as self employed you usually receive a letter informing you that you need to complete a tax return for that financial year. At present Self Assessment returns are completed and filed online. From 2020 the process of moving to Making Tax Digital is anticipated (maybe!). We can help you navigate the confusing questions and go through the checklist of all the information you need.
Xero describes itself as ‘beautiful accounting software’ – we agree! It has brought our work right up to date with current technology and pressing forward. Try their mobile app, daily Bank Feeds, and integrations – your former idea of bookkeeping will be turned up side down!
The Institute of Certified Bookkeepers is the largest bookkeeping institute in the world. It promotes and maintains the standards of bookkeeping as a profession, through the establishment of a series of relevant qualifications and the award of grades of membership that recognises academic attainment, working experience and competence.