How does a bookkeeper work with the accountants who prepare the year end?
Lots of people would struggle to describe the differences between an accountant and a bookkeeper. The lines are blurred as the same software is often used to prepare the bookkeeping and the year end accounts. The two roles may have the same goals, but there are different functions provided to support businesses.
When the year end comes, we send an invitation to log into the software, as that is where all the records are stored now. The bank statement confirming the year end balance is attached and all asset invoices are in Quickbooks or Xero when the accountants need them.
For both the accounts and the tax calculations, accountants always have questions about assets at the end of the year. We make sure that all invoices for assets and HP agreements where needed are attached to the transactions in the software. This means the accountant doesn’t need to have the physical paperwork, and they don’t send so many questions while they work their magic on the year end figures. When Jen used to work in accountancy practices herself, this was always an issue as asking for copies of invoices can slow down the accounts practice. Knowing what they are going to need before they ask the questions means that we can put a copy of all important documents into the software as we go along.
When the accountant does have a question, they can come to us first so that only very specific questions ever interrupt the day for our clients. We can usually provide the additional paperwork or answer anything we have looked at in the year. This is easier for most clients as they don’t want to get involved in the minor details, especially as this can be a year after each transaction took place so it can be hard to remember what was going on.
Do bookkeepers hate that the accountants go through the figures?
Having another professional look over the figures once a year is an additional peace of mind for our clients. It never hurts to have the figures reviewed to ensure nothing has been missed over the course of the year. For some companies, we are the only ones accessing the software as the client doesn’t choose to log in. In these cases it is reassuring to know that the accountant will have a look over everything at the year end.
Once the accounts have been signed and filed, we will ask for an opening balance journal. This allows us to keep our books in line with the figures declared to Companies House and HMRC. Once everything matches, the year end is locked so that the software can not be altered up to the point the accountant has already seen.
For a chat about how we can help your business, give us a call or get in touch with BW Bookkeeping.
