I'd like to get a feel for how much time we all spend on low value work such as bookkeping, bank reconcialtions, cash controls and VAT returns.
Accounts and tax returns is any time after the trial balance.
Robert Harper
Replies (6)
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Define 'value'
As a bookkeeper, not an accountant, I spend ALL my time on what you call 'low value work'! But isn't it like calling building the foundations of a house 'low value' because their made of cheaper materials than the fancy brickwork? The after-Trial-Balance clever stuff is going to be nonsense if the bookkeeping wasn't up to scratch. What your clients need is an understanding of the distinction between bookkeeping and accounting, then maybe they'll be comfortable paying a bookkeeper (at a lower hourly rate than you) through the year, and you'll be comfortable that your raw material - the Trial Balance produced by the bookkeeper - is a sound foundation for your high-value work.
Too bl**** much!
I dread to think Robert but when coupled with Inland Revenue delays & the consequent extra work I would say that 50% of my time is spent on low value work.
I would be interested in other peoples views which will vary, I'm sure with firm size.
We are a two person firm - one man one woman or is it the other way round.
P.S. Our local Business Link has been surveying local businesses to discover their gender! Yes, despite the problems facing small business they feel this is important. I asked to be classed as hermaphrodite which threw them completely. I just hope I am right!
A fair percentage
Yes a good part of my work is on this "low value" work.I agree with Phil that doing the whole job gives a much better insight. I only realised this after "farming out" some book keeping. Although it can be fairly mindless, a full understanding of the client's operations increases the worth of the number crunching.
Robert ~ I think clients accept that this work has to be done and generally don't mind paying. Many don't do it because they either can't or don't like doing it. I gave up doing most of my own car maintenance for both of these reasons!
Clients like to know that their accounts have been prepared properly and that they can rest assured knowing that they meet the requirements of both the Revenue or HMC&E.
I do my mechanic's accounts and he does my cars ~we are both happy with the work each other does.
Saving tax and business planning and advice is ,of course, important too.
Cheers
Tim