Running your own business is full of challenges and trade-offs and one of them is how much of the bookkeeping you do in-house vs outsourced accounting.
Whether it’s just you in your business or there’s several of you, one of whom does the bookkeeping, the trade-off remains.
And although there’s no absolutely right answer, here are some options.
Financial information
What information do you need to run your business?
That’s where this conversation has to start because the reason for doing bookkeeping and accounting in the first place is so you can measure and improve financial performance.
➡️ We can help you understand and use your financial information.
Outsource most of your accounting
You could be on your own in the business or maybe your business has several people in it – outsourcing all the bookkeeping and accounting can be a great solution.
It allows everyone in the business to do what they do best and you know the financial side of life is in good hands.
It’s scalable and uncomplicated.
⚠️ Just make sure you outsource to people who really understand your business!
Hybrid solution
The most common hybrid solution is where the sales invoices are raised in-house and perhaps credit control and some of the other routine bookkeeping is also in-house.
The external bookkeeper or accountant will take care of everything else such as:
- bank reconciliations
- VAT returns
- management accounts
- accounting for one-off transactions such as fixed asset purchases
Over time the balance of a hybrid solution may change as your business evolves and people come and go.
☑️ Hybrid solutions bring flexibility and resilience to your financial management and may be the best way to outsource your accounting
You do most of your bookkeeping
This may be where you start and it also may be where you end up.
Bookkeeping’s not for everyone, some people just never warm to it. But if you enjoy the work and can make the time to keep your bookkeeping up to date then it’s a great idea.
But make sure you invest in some training so you do it right!
The related link below tells the story of how Maria, a sole trader for many years, mastered the art of bookkeeping.
💡 Take a look at our training services for Xero, QuickBooks and FreeAgent
Making Tax Digital for income tax
HMRC are going live with Making Tax digital for income tax (MTD) from April 2026.
If you’re affected because you’re either a sole trader, a private landlord or both the best way to get prepared is to:
- set up a separate bank account for your business and also for your property activities
- get your bookkeeping running smoothly
➡️ Making tax digital – the useful bits have little to do with tax!
Most businesses in the UK are small businesses and therefore most businesses don’t need a full-time bookkeeper or finance team.
But they all need to get their accounting work done well.
We offer a free 30-minute review** of your business accounting on Teams or Zoom. If this sounds interesting then please contact us:
📞 Call Michael Austin on 020 7125 0270 or
📧 info@bluedotconsulting.co.uk
Michael
** 30-minute review of your business accounting – terms & conditions apply
Related links:
Why Every SME Needs Solid Bookkeeping — And How to Make It Work
How did we solve a problem like Maria’s?
At Blue Dot Consulting, we work with ambitious owner-managed businesses across Central, West and South West London, including Fulham, Hammersmith, Richmond, Wandsworth, Kensington and Chelsea. If you’d like to improve your financial reporting, bookkeeping or decision-making, we’d be delighted to help.
© Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW
