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FAQs BookkeepingFrequently Asked Questions

Please see some of the more frequently asked questions below and useful links to related sites.  If you have other questions then please don't hesitate
to Contact Us.

Why choose an ICB registered Bookkeeper?

Bookkeeping is a regulated profession and your business deserves the best. Always insist on a Certified Bookkeeper.

ICB members are qualified to fulfil a range of roles including general bookkeeping and accounts department work, purchase & sales ledger, reconciliations, trial balances, VAT returns, and cashflow forecasts. Some members also qualify in Payroll, Self Assessment Tax Returns, Final Accounts, Payroll, Budgeting and Management Accounts.

Find out more at www.bookkeepers.org.uk

Are you entitled to Small Employer Allowance towards your NIC Employer contributions

You could get £3000 from the government towards your Employer NIC’s, just by clicking the right button on your payroll and submitting a P30. Or ask your friendly bookkeeper to do it for you.

Find out more at www.gov.uk/employment-allowance

What is the difference between Profit and Loss and a Balance Sheet

A profit and loss account tells you how profitable your business is from the day to day running of your business, taking into account your sales and expenses.

A Balance Sheet tells you the value of your business at any given point, taking into consideration your assets, fixed and current, and your liabilities, current and long term. Helping to give you a picture as to whether your business is growing in value.

CEM can advise you on how to be more profitably and at the same time increase the value of your business.

Why do I need to manage my cash flow if I am making a profit

Just because you are making a profit, doesn’t mean there is cash in the bank. Your clients may not have paid you for your services, you may have bad debts. You may have to pay your rent and insurance up front. And at the same time you may have suppliers wanting payment in less than 30 days credit.

By managing your cash flow, through ensuring prompt payment from your clients and using supplier credit to its maximum effect, while also ensuring HMRC paid in a prompt and timely fashion, you can turn your profit in to a reality, and survive the storm if you are seeing a temporary downturn in your business.

What is auto enrolment?

The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it.

This is called ‘automatic enrolment’ because it is automatic for staff – they don’t have to do anything to be enrolled into a pension scheme, but it is not automatic for employers.

How can you find out when your Auto Enrolment Staging Date is?

You can get more information on the Pensions Regulators Website

What is Bookkeeping / Accounting Automation?

Paperless bookkeeping, through the uploading of files – jpegs / PDF’s / etc. onto cloud based software.

Most accounting cloud based software has been approved by HMRC for auditing purposes.

What is Xero?

Accounting Software package - Find out more on the Xero Website

What is Receipt Bank?

Receipt Bank converts key information from your bills, receipts and invoices into data you and your company can use!

Find out more at Receipt Bank Website

Why do I need to budget?

Do you want to grow? Do you want to make a profit? Would you like to employ someone? Would you like to pay yourself more?

If the answer to any of these questions is yes, then you need to make a plan and set yourself some objectives. A budget forms these objectives and plans into both a numerical format (usually excel) and a series of written statements that support and justify the numbers.

But don’t worry, CEM will help get the ideas from your head onto paper. Then they will help you to make those plans a reality.

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