text: How bookkeeping can help you run your business | Virgin Start Up Loans - Support and Advice to Start Your Own Business
  The financial side of running a business can be tricky like no other area - sometimes you'll want to consult an expert. Accountants help you to keep your finances in order, but bookkeepers play an important role too. So what are the differences between a bookkeeper and an accountant? And how can a bookkeeper help you to run your business? We spoke to some experts at Xero, producers of accounting software for SMEs, to find out more.
  Bookkeepers can manage lots of different responsibilities within a small business. But the main focus is organising, recording and reporting financial transactions as part of the operational life of a small business. In more recent times, some bookkeepers have extended their range of duties to include:
  You will often find that a bookkeeper has an area of specialisation, and it's a good idea to ask them more about this when you are looking at hiring them for services.
  In summary, it's the bookkeeper who does the day-to-day work so that the accountant can concentrate on strategic financial operations. So bookkeepers play an important role – without them, accountants can't do their jobs properly.
  A well-run business will usually make use of both accountants and bookkeepers. The division of labour is important. Here's how it could work:
  After completing the above tasks, a bookkeeper can focus on keeping your company's accounts up to date on a daily basis.
  The accountant and bookkeeper will get together regularly, perhaps once a month. They might meet in person or they work remotely, using cloud accounting software with shared access. Either way, the accountant will look at the figures in the accounts and the bookkeeper will explain any numbers and decisions that aren't clear.
  If you want to avoid running out of money suddenly, you need to actively monitor your cashflow. We've discussed this in our guide to managing cashflow. It helps to have someone else checking the numbers, making sure your cash keeps flowing, and a bookkeeper can do that.
  Without proper bookkeeping, accounts will not be accurate. That means your accountant won't get a clear picture of your company's finances, and you can't make strategic business decisions.
  Just as importantly, your business has a legal obligation to accurately record its accounts and file company reports to HMRC. So it pays to get this right. Bookkeeping will help you do all of this – and will also provide you with useful insights into the financial health of your business.
  For software your bookkeeper and accountant will love, try Xero free for 30 days. Want to know more about financial management? Read our small business guides.