restaurant bookkeeping services

A Comprehensive Guide How Restaurant Bookkeeping Services Elevates Your Culinary Business

Introduction to Restaurant Bookkeeping Services

Being a restaurant owner, you have endless responsibilities on your plate. You take care of everything from your restaurant’s menu to your staff, from your inventory and finances to managing your restaurant well. Managing everything well, including your finances, becomes difficult with so many responsibilities. Poorly managed finances are bound to create cracks in your restaurant business. To avoid such a situation, stay with us till the end of this blog. This blog comprehensively guides how restaurant bookkeeping services will help elevate your culinary business.

Bookkeeping is not everybody’s cup of tea. Therefore, it is better to leave it to the professionals. Hiring professional bookkeeping services will ensure that all your finances are in order and that you comply with all the necessary tax laws. It will also ensure that your profits are optimised. Professional bookkeeping services range from helping with basic bookkeeping tasks such as recording all your transactions and preparing financial statements to providing more advanced services such as preparing a restaurant’s budget, forecasting, and conducting financial analysis. Regardless of what services you opt for, they have several benefits for your business. We at E2E Accounting specialises in restaurant bookkeeping, you can contact us with your restaurant business bookkeeping services. 

Importance of Bookkeeping for Restaurants 

Though our restaurant is in the best position with high sales and revenue compared to competitors, our operations could suffer if our accounting system isn’t efficient and accurate. Additionally, management’s focus on delivering quality service and guest experiences might unconsciously sideline accounting and bookkeeping tasks, even though both are crucial. Balancing both of these essential aspects simultaneously can pose a challenge. Therefore, to avoid such situations, it is always advisable to hire professional bookkeeping services. With the help of professional services like E2E Accounting who will perform this task for you, to easily prevent delayed payments, inventory problems, inaccurate or costing problems, and other petty bookkeeping issues.

The Significance of Accurate Financial Records for Restaurant Bookkeeping Services

Bookkeeping and accounting form the backbone of each business. In the case of restaurants, the significance of accurate financial records is essential. It provides several benefits, such as:

  1. Impact on Financial Health

With accurate financial records, your restaurant will operate more effectively as you get a more transparent picture of business performance. You get a more comprehensive view of the areas wherein you can improve and reduce wastage. It can help you prepare accurate budgeting and forecasting based on which you can make more improved decisions for the future of your business. Lastly, with the help of accurate financial records, you can reduce all the possibilities of fraud or theft in your restaurant.

  1. Compliance with Tax Regulations

Accurate financial records help you maintain compliance with all the necessary rules and regulations. As the restaurant owner, you are responsible for several activities, such as maintaining and filing accurate payroll data, tax filing, and audits. Any inaccuracies in such filings might be expensive.

Benefits of Specialized Bookkeeping Services for Restaurant Business

When your financial records are accurate, you get higher visibility of your business, through which you can make crucial decisions for when you want to raise investments or for expansion to reduce unnecessary expenses. However, professional accounting and bookkeeping services are necessary for a unique business structure and specific requirements. They are the ones who are well-versed with the right blend of expertise and technology. There are several benefits to opting for specialised bookkeeping services for your restaurant business, such as:

Detailed Financial Analysis of Restaurant Bookkeeping consists of:

Providing excellent customer service with quality food does not mean your business is doing well financially. To understand how good your business is doing financially, you need to realise:

  • Which area is your restaurant business generating revenue?
  • Which area of your restaurant business are you spending more?
  • How much are you spending?
  • How much do you need to earn to generate profits?

For all these answers, it is essential that your bookkeeping is maintained on time and you are recording all your revenues and expenses. A detailed financial analysis consists of the following:

  1. Cost of Goods Sold

Cost of Goods Sold (COGS) is the total cost of all the ingredients used in the restaurant to prepare the menu items, including the garnishes, herbs, condiments, labor, and packaging. Generally, more than one-third of the gross revenue generated by the restaurant goes towards paying COGS. Therefore, it is considered essential for the business. Hence, it is always advisable to keep a tab on COGS. 

  1. Prime Cost

Prime cost is the sum of two crucial costs of your restaurant business. It is the total COGS and labor costs (front and back of the house). Prime cost is the cost to sell your food, drinks, and other products. As per the industry average, the prime cost should always be within the 55% – 60% range.

  1. Food Cost

Food cost is considered as the ratio of the cost of ingredients (source of preparing and serving the food items listed on the menu) and the revenue generated from those ingredients through sales. It is calculated as the percentage of your overall sales. Food cost helps evaluate the efficiency of your food production and will help you set your menu prices to maximize your profits. 

  1. Contribution Margin

Contribution Margin shows how much of your revenue remains after you have removed your variable cost. 

  1. Menu Item Profitability

Menu Item profitability is analyzing the profitability of individual items listed in the menu. It helps identify high-margin items and those that might need adjustments in pricing or ingredients to improve profitability. If you want your restaurant to generate good profitability, paying essential attention is necessary to create a profitable menu.

  1. Break Even Point

The break-even point means that your total revenue is equal to your total cost, and you are neither incurring any profit nor loss. It helps you understand the minimum sales values required to cover all your expenses.

  1. Gross Profit

Gross Profit is the difference between your selling price of the item listed on the menu and the cost of the ingredients and materials used in preparing that dish (in other words, Sales –COGS).

  1. Net Profit

Net Profit is the amount that remains after you have deducted all your operating expenses, such as rent, payroll, tax, bills, and other leasing costs, from your Gross Profit.

Tax Optimization Strategies

Tax optimization strategies involve the essential legal methods for minimizing the tax liabilities of your restaurant. These strategies include taking advantage of all the necessary deductions, proper bookkeeping, and tax credits, efficiently structuring your business, and optimizing your tax liabilities by appropriately timing your income and expenses in the given tax year.

Accurately maintaining your bookkeeping is essential for the financial health of the restaurant. If you find this task time-consuming and difficult, consult with professional bookkeeping services like E2E Accounting for these tasks so that you can free up your time and focus more on the growth of your business.

What Needs to Be Tracked in Restaurant Bookkeeping Services

Bookkeeping in restaurant services is crucial. It helps in making precise analyses of cost, revenue, and profits and implementing strategies that can help improve your business’s profitability.

  1. Payroll

Payroll is not just related to paying wages to employees. It covers every aspect of your employee’s salaries, which includes benefits such as insurance, annual leave, bonuses, and taxes.

  1. Accounts Receivable

Accounts receivable relates to the money your restaurant owes to your vendors on credit. When your accounts receivable are recorded appropriately, it provides complete transparency of what you owe and ensures timely collection of your bills.

  1. Account Payable

Accounts payable relates to managing and recording the debts of your restaurant to payable to your suppliers of goods or services they provide on credit. Managing your accounts payable appropriately, helps ensure timely payments to your suppliers and avoid late fee payments or supply disruption.

  1. Sales

Sales is the revenue generated from the services provided in the restaurant form of dine-in or takeaways, delivery, and catering. Keeping track of this revenue is essential for bookkeeping since it helps determine your restaurant’s profitability.

Cash Management

Monitoring and managing your restaurant’s cash flow is essential. Cash flow refers to the incoming and outgoing cash from your business daily, weekly, and monthly. However, to monitor your cash follows you need to do your bookkeeping, if not daily, at least once a week or monthly.

A positive cash flow is essential for every business, including restaurants. Therefore, efficient tracking of your cash flow through appropriate accounting helps in understanding whether you have enough working capital to help you meet your day-to-day expenses and investments and whether your restaurant business is generating enough profits.

Technology Integration in Restaurant Bookkeeping

Integrating technology into restaurant bookkeeping will help you streamline your operations and enhance efficiency. Restaurant bookkeeping software is essential in managing your finances and implementing robust security measures that help safeguard your sensitive financial data.

Restaurant Bookkeeping Software

Accounting software: Several restaurant bookkeeping software can be tailored according to your requirements. Software platforms such as Xero, FreshBooks, and QuickBooks provide specific features that enable tracking your expenses, inventories, and payrolls.

Point-of-Sale (POS) Integration: Integrating POS systems within your accounting software will help you automatically sync your sales data. It also helps simplify the reconciliation process, thus ensuring accuracy in your financial records.

Inventory Management Tools: Choosing an inventory management tool will help you track your restaurant inventory stock levels and manage ingredient costs, thereby minimising wastage.

Cloud-based Software: Lastly, adopting cloud-based software solutions to access your financial data from anywhere is always advisable. 

Security Measures while considering the restaurants bookkeeping software

Ensuring appropriate security measures for your sensitive financial information is essential. Therefore, your data must be encrypted with regular software updates and patches and secured networks in the form of firewalls, which can prevent any unauthorised access. Also, ensure limited access to your financial data by limiting user permission and access control measures.

Lastly, it is equally essential to take regular backups of your data and store it at a secured location to prevent any data loss in case of system failures, cyber-attacks, or other unforeseen events.

You can effectively manage your restaurant bookkeeping tasks by implementing specialised software and stringent security measures while safeguarding financial information against potential threats. However, if you need expert help, take the necessary steps now by contacting professional bookkeeping services like E2E Accounting, we specialise in restaurant bookkeeping.

 Challenges in Restaurant Bookkeeping Services

Restaurant Bookkeeping Services face several challenges due to the nature of this industry, which has diverse sources of income. Therefore, managing cash flows and including suitable POS software systems have become challenging. Yet another big challenge is to find an expert bookkeeper. Below are a few solutions to help you overcome your restaurant bookkeeping challenges.

Varied Expenses and Income Sources

Categorising appropriate systems within your accounting software and classing your various sources of income and expenses can help you keep track of your records and ensure accuracy. However, it is also essential that you regularly reconcile your accounts to maintain compliance with your financial records.

Managing Cash Flow:

To manage your cash flow effectively, you must forecast your cash flow by analysing it with your historical data and your anticipated sales. It will help you maintain your cash reserves for unexpected or unforeseen circumstances. An effective accounting software tool can help you manage your cash flows and project your cash movements effectively.

Finding an Expert Bookkeeper:

Seeking the help of experienced and professional bookkeeping services who have experience in the restaurant industry can help you ease your accounting and bookkeeping work; they will manage your inventory, calculate your COGS accurately, and work out your taxes and payroll, thus relieving you so that you can focus on the growth of your business.

Selecting a POS System:

While selecting your POS system, several factors must be considered, such as:

  • Ease of use of the system
  • Integration capabilities with your accounting software
  • Reporting features present in the POS system
  • Scalability and cost

Some popular POS systems available are Square, Toast, Lightspeed, and Revel Systems. Before selecting the system, make sure you are taking a demo of the system and reading all the reviews to understand which method best suits your needs and the requirements of your restaurant.

Streamlining Inventory Management

Having an effective inventory management system in your restaurant is necessary. It helps in tracking your inventory and stock of your ingredients efficiently, thereby managing your costs and reducing waste. Below are a few tips that can help streamline your inventory management system effectively.

Tracking Ingredients and Costs:

Inventory Tracking Software: Use appropriate inventory management software that can help you track the ingredient quantities, prices, and usage in real time. It also helps in maintaining accurate records and predicting reordering needs.

Standardised Recipes: Develop standardised recipes with precise ingredient quantities. It will help you maintain consistency in portion sizes, which can aid in accurately tracking ingredient usage. 

First-In, First-Out (FIFO) Method: Implement the FIFO method through which you use older inventory first and reduce the chances of wastage in the form of expired ingredients or unusable.

Waste Reduction Strategies:

Inventory Audits: Conduct regular inventory audits. It will help identify overstocking, spoilage, or unnecessary purchases, optimising your inventory levels.

Menu Analysis: Analyse your sales data. It will help you determine which items are popular or less popular on your menu. Adjust your menus to focus on items that utilise common ingredients or try to reduce those items that contribute to high waste.

These strategies can help your restaurant streamline inventory management, reduce costs, and minimise waste, improving your operations and profitability.

Scaling your Culinary business through Financial Forecasting and Budgeting.

Financial forecasting and budgeting help you plan your restaurant’s growth and identify essential trends to generate more profit. For effective financial forecasting and budgeting, you must analyse and project your sales data to determine your future revenues, estimate your expenses, including your food cost, manage your cash flow to help you control your cost, and determine effective liquidity measures to cover your expenses and investments. All these analyses will help you plan your growth and identify profitable trends.

Planning for Growth:

Apart from budgeting and forecasting, effective planning for your growth also includes market analysis, where you must research current market trends and identify expansion or diversification opportunities. Market analysis includes studying your locality’s demographics, competition, and consumer preferences and strategizing accordingly.

Secondly, you also need to implement adequate infrastructure and technology that can help you increase your sales volume. Apart from this, yet another area of focus is the effective branding of your restaurant. It can be achieved by increasing the brand’s visibility through campaigns, social media platforms, and loyalty programs, which will help you attract new customers and retain your regular customers.

How do you identify your profitable trends? There are various ways in which you can do that. 

Menu Analysis: Understand your menu. Use your sales data and identify which item is generating high-profit-margin items and which one is not. Highlight and promote these items or consider expanding similar offerings and replace those not providing higher profit margins.

Customer Feedback and Preferences: Gather your customer feedback. It will help you to understand preferences and trends. Make changes in your menu and services based on popular choices to capitalise on profitable trends.

Engaging in thorough financial forecasting and strategic planning through bookkeeping will help your culinary business scale higher towards growth, and by analysing profitable trends, you can position your restaurant on the path of success by adapting to the changing market conditions and maximising your profitability.

Overcoming Bookkeeping Challenges

Overcoming the bookkeeping challenges of your restaurant, especially while you are dealing with seasonal fluctuations and adapting to industry changes, requires strategic approaches.

Dealing with Seasonal Fluctuations:

Seasonal fluctuations can be dealt with the help of effective financial forecasting and flexible budgets. It will help you maintain cash reserves during your peak season and set aside your profits as reserves. It will help you cover your costs during the off-season, reducing the impact on income.

Adapting to Industry Changes:

Ensure you and your staff stay updated with the latest industry trends and technological advancements and change yourself according to customers’ preferences. Eventually adapting yourself to the latest industry trends is crucial to survive the competition. Therefore, adopting an agile business model is always advisable, which will eventually help you maintain flexibility in your operations.

By employing proactive strategies like flexible budgeting, leveraging cash reserves, staying informed about industry changes, and adapting operations accordingly, you can easily navigate your restaurant through seasonal fluctuations and industry shifts more effectively in bookkeeping and overall business management.


To conclude, effective bookkeeping is paramount for the success of a restaurant. Additionally, it is the backbone of every business, enabling you to make informed financial decisions and strategic planning and maintain a healthy bottom line. A well-managed bookkeeping system is also crucial, from tracking expenses and managing cash flow to adapting to industry changes and fostering customer trust through transparency.

In Coventry, UK, there is a renowned accounting product of Corient Business Solutions called E2E Accounting. Among the many services we also provide monthly bookkeeping, tax advisory, and management accounting. In order to overcome seasonal changes, proactive strategies, flexible budgeting, and foresight are necessary. Our goal is to give you an in-depth knowledge of your company’s financial performance. Remaining abreast of industry developments necessitates adopting new technologies, encouraging business model adaptability, and maintaining knowledge.

Ultimately, restaurants can build a strong foundation for long-term success by prioritising transparent financial operations, staying adaptable to market shifts, and consistently delivering quality service. Efficient bookkeeping ensures compliance and paves the way for growth, sustainability, and a positive brand reputation within the competitive culinary landscape. For any expert advice, you can contact our team of expert advisors to see how our accounting services can help you.

bookkeeping services for small business

Beyond Balance Sheets: How Bookkeeping Services for Small Business Empower Dreams 

Running a business involves juggling various tasks like sales, inventory, team management, and finances. Small business success relies heavily on meticulous transaction records. While you don’t have to handle everything yourself, ensuring accurate records is crucial. Consider hiring a professional bookkeeper like E2E Accounting for support. Yet, as a business owner, grasping basic bookkeeping concepts remains vital. Why is bookkeeping so crucial for small businesses?

A) Importance of bookkeeping services for small businesses

If you are running a small-scale business, you must know that bookkeeping is crucial to your business’s growth. Effective bookkeeping and accounting services can help you understand your business’s financial security and make informed decisions. It will also help you track your income and expenses, remain compliant with all the essential regulations, pinpoint the areas where you can improve and avoid unnecessary expenditures, and file all your reports and taxes on time, avoiding penalties. If your bookkeeping is improper, tracking and reporting will become impossible. Here are some advantages of how bookkeeping can assist your small business:

1. Help Your Business Accurate

Making informed decisions for your business is only effective if you are maintaining accurate financial records.

For example, you want to prepare a budget for the next six months and forecast your sales, the very first thing you need to know is:

–        Your sales during the previous six months

–        Your current sales

–        Your previous budget and forecast

It will help you understand whether you have achieved your forecasted sales based on those budgets.

Gathering all this information requires recording each and every transaction and keeping all your receipts up-to-date, accounting for every last cent. Only by appropriately maintaining your books can you easily retrieve the data whenever needed.

If you do not have enough time to do bookkeeping every week or even monthly, you can hire a professional bookkeeper like E2E Accounting who will perform this task for you.

2. Help Your Business Make Profit

When your bookkeeping is properly maintained, it helps you understand the precise profitability of your business. These details can be acquired and analysed from the financial statements. Analysis of the financial statements can also help you understand your business cycle, observe trends, and compare the growth rates of your business across periods.

Thus, you need to know how important bookkeeping is for your business. Now is the time to adopt the smart solution for your business by hiring expert bookkeeping services for small businesses who can simplify the entire process for your small business and save money.

3. Help Your Business Save Time

Bookkeeping and accounting are considered as the back-bone for every business. It is also advisable to do this task on a daily basis, if not daily at least every week. If you think that you are juggling between several business operations including your bookkeeping, and you are not getting enough time to focus on the growth and expansion of your business. One of the smart things you can do is hiring professional bookkeeping services, like E2E Accounting. 

B) Several advantages of professional bookkeeping services for small businesses are:

  1. Real-time reporting: Your bookkeeping will be done on time, and you can get the real-time reports with accuracy and compliance, which can help you make informed decisions for your business.
  2. Time and Focus on Core Business: One of the most significant benefits is that it will help you free up your time and you can focus on other core operations and growth of your business.
  3. Cost-Effective: Hiring professional bookkeeping services, like E2E Accounting for your small business is also cost-effective, and you also do not have to hire an in-house bookkeeper and purchase any accounting software.
  4. Maximise Cash: Managing your cash flows are one of the biggest concerns for small businesses. So, it is important that you pay close attention to your cash flows. If you want to improve your cash flow and keep track of your cash moving in and out of your business, maintaining your bookkeeping accurately and on time will help you. Professional bookkeeping services will always maintain your records up-to-date.
  5. Keeping track of your funds: Lastly, you also do not have to keep on adding capital every time. Wherever there is a lack of enough funds, you will be notified, and you can take necessary actions of adding capital either by taking out a loan or on your own.

Basic Bookkeeping Practices For Small Business

As we know, bookkeeping is the backbone of your accounting and financial systems. Inaccurate bookkeeping can hamper the growth of your small business. Though there are many accounting software that can help ease your bookkeeping work. However, any data recording error can lead to inaccurate financial statements. Basic bookkeeping practices involve the following activities:

1. Recording transactions

Bookkeeping and accounting involves several day-to-day tasks, such as categorising and recording all your transactions in your system, running payroll, and managing your accounts receivable and payables.

2. Using Advance Software For A Systematic Approach:

While recording the transactions, adopt a consistent method, either manual bookkeeping or accounting software such as Xero, QuickBooks, or Excel spreadsheets. Refrain from mixing two approaches; this will lead to inaccuracies in your bookkeeping, as there are chances of missing transactions or incorrect recording.

Below is a list of a few popular accounting software you can consider based on your needs and preferences. To help you make an informed decision on which one you should opt for, we have outlined the benefits of each software.

  1. Identifying Transactions: Classification of your transactions is a crucial task and must be done correctly. Otherwise, it can lead to incorrect recording of transactions. Based on this classification, you must record all your financial activities, such as sales, expenses, purchases, loans, and payments using the below software.

a) FreshBooks:

FreshBooks is one of the best accounting software for small businesses in the UK.

b) Xero:

Xero is also one of the popular options for any advanced analytics and robust platform security keeping your business data secured and healthy.

c) QuickBooks :

QucikBooks is a budget-friendly accounting software. It is one of the cheapest options for payroll solutions in the industry.

d) Oracle NetSuite :

Oracle NetSuite is an accounting tool which is ideal for growing businesses as it provides exceptional add-ons and integrations.

e) Sage :

If your business is VAT registered, Sage software helps you in getting your VAT submissions right with its MTD-ready platform and improving your cash flow.

f) Wave :

Wave software is considered as a convenient pick generally for small businesses. This software provides a superb payroll feature and has a user-friendly interface.

g) Zoho Books :

Zoho Accounting is a beginner-friendly software solution. It has a great inventory tracking feature and project management tools.

h) Bonsai:

Bonsai is one of the best software for streamlining invoicing with templates and automation. It also offers your clients global payment options.

i) Melio :

Melio is ideal for accounts payable solutions. It lets you invite team members and accountants to your account for free.

j) Xendoo :

Xendoo is also one of the excellent eCommerce accounting services. It provides a dedicated bookkeeping team and monthly reports.

1. Recording Details: Make sure that you are recording all the necessary details for your transaction, such as date, description, amount, and the accounts that are affected. It will help you locate any transaction quickly for your future reference. 

2. Maintaining Accuracy: You must regularly reconcile all your cash and bank statements for your records. It will help you locate any discrepancies in your balances.

However, if you feel that you need more time from your business and doing regular or even monthly bookkeeping is difficult for you, seek help from professional bookkeeping services for your small business. They will take up your bookkeeping task and ensure you follow necessary compliance and regulations. These practices will help provide you with a clear overview of the financial health of your business.

3. Organising financial documents

Maintaining all the documents, such as invoices, receipts, bank statements, etc, is an essential part of bookkeeping, whether from the future reference perspective or audit perspective or based on statutory compliances. Therefore, all the documents must be appropriately maintained. You can adopt the following strategies for effectively organising your documents:

  1. File Management System: You can create a filing system for all necessary documents and categorise them based on invoices, receipts, bank statements, and other financial documents. You can organise them based on date, type, or category. However, make sure you are consistent in naming your folders, so they are easy to locate.
  2. Digital Storage System: You can also consider digitising all your documents for easy access and backup. One of the best methods is to use cloud storage or accounting software. It can help you securely manage your files. However, make sure that you are consistent in naming your folders, so they are easy to locate. Also, ensure timely backups to safeguard your financial data against loss or damage.

C) Types of Bookkeeping Services for Small Business

While doing bookkeeping services for small business, it is necessary to understand which bookkeeping system will work best for you. Generally, there are two types of bookkeeping systems:

–       Single-entry bookkeeping system

–       Double-entry bookkeeping system

Here is a comparison of both systems, which can help you decide which method will work best for your small business.

1) Single-entry vs. double-entry systems

 Single EntryDouble Entry
OverviewIt is a straightforward method. In this method, every transaction is recorded only once without offsetting entries.This method records every transaction twice: once as a debit and once as a credit. It ensures that both the debits and credits match, providing a comprehensive view of a business’s financial health and minimizing any errors.
SuitabilityThis method is suitable, especially for small businesses with less complicated finances. Sole traders, freelancers, or those with a small business with few transactions use this method.This method suits larger businesses or those with more complex financial transactions.
Insightful ReportingThis method provides minimal insights into your financial health as there is no tracking of any information in detail relating to your assets, liabilities, and equity.It provides a more detailed overview of a company’s financial position, thus aiding in making informed decision-making and conducting accurate financial analysis.

2) Choosing the right system for a small business

If you are still determining which system is best for your small business, you need to understand the complexity of your transactions. However, it is always best to use a double-entry system for better accuracy and insights. The double-entry system also fulfills all the regulatory requirements and is best for scalability, growth, and any financial needs in the future. Consulting with professional bookkeeping services for small business can also help you make the right choice based on your business’s specific needs.

D) Outsourcing vs. In-House Bookkeeping

Generally, many business owners are in two minds about whether they should outsource their bookkeeping to professionals or hire an in-house bookkeeper. It becomes hard to understand which is the best and most cost-effective method.

We have provided a comparison between outsourcing your bookkeeping and in-house bookkeeping.

Choosing Between Outsourcing and In-House:

When choosing which option is best, understand the size of your business and your specific requirements.

If your business is a small business with limited resources, the best option is to consider outsourcing your bookkeeping. It will provide you with the expertise that is required for your business. Also, your books will be maintained more efficiently. Outsourcing can also be cost-effective compared to hiring an in-house bookkeeper, and you need not purchase any accounting software, as your professional bookkeepers will process your bookkeeping, and provide you with the login details for accessing your books.

However, if you own a large company, you can choose to go with an in-house bookkeeper or outsource your bookkeeping. Both options suites you depending on your specific requirements. Combining both outsourced services and in-house services can provide you with optimal efficiency.

E) Bookkeeping Mistakes to Avoid for Small Businesses

As we know, bookkeeping services for small business is an essential element for your business. Even a minor mistake in bookkeeping can lead to inaccurate financial statements and analysis. Let us understand the common bookkeeping mistakes that can happen while you are doing your bookkeeping and how you can avoid these mistakes.

Common Bookkeeping Mistakes and tips to prevent them for small business:

Not Maintaining Records Properly: One of the biggest bookkeeping mistakes is not appropriately keeping your records. It can lead to inaccuracy in your financial reporting, difficulty tracking your invoices and expenses, and may also lead to compliance issues. Therefore, it is always advisable to maintain your records systematically, either digitally or in proper folders.

Mixing Personal and Business Finances: Mixing your personal and business expenses can lead to inaccuracies in reporting and affect your tax deductions, as you cannot classify your costs accurately. Therefore, it is always advisable to maintain a separate business bank account and avoid using it for personal use.

Backup and Data Security Measures: Failing to take timely backups or maintain effective data security measures can lead to data loss or security breaches. It can also take time to retrieve your crucial financial information. Therefore, it is always advisable to take timely data backups and maintain strong cybersecurity practices to protect your data.

If you are finding it challenging with your bookkeeping and feel that these mistakes can happen, consult a professional accounting and bookkeeping service provider for maintaining your bookkeeping to ensure accuracy and adherence to best practices.

F) Challenges Faced in Bookkeeping Services for Small Business

Specific challenges can arise if you plan to do bookkeeping for your small business or hire an in-house bookkeeper. Below are a few challenges that you can face while doing bookkeeping for your small business:

1) Technology Challenges:

Adapting to new accounting software or technologies can be challenging and may require professional training to become proficient. It will take a lot of your business time and effort.

Compatibility issues can arise while integrating the accounting software into your systems, leading to several technical challenges.

Yet another challenge that can arise is effective data security measures, which can constantly threaten your sensitive financial information.

2) Time Management and Resource Allocation:

Bookkeeping can be a time-consuming task and requires adequate knowledge and focus. Small businesses can have limited staff. Therefore, if there is no dedicated resource or you cannot give dedicated time for bookkeeping, it can lead to inefficiencies and inaccuracy.


To conclude, bookkeeping is about more than just recording transactions. Bookkeeping is also about providing financial insights, understanding the financial health of your business, making effective decisions, and ensuring all the necessary compliances are followed. Bookkeeping also helps foster your small business’s overall growth and success.

E2E Accounting is a product of Corient Business Solutions which is based in Coventry, UK. The Product offer a wide range of services, for small business which includes Monthly Bookkeeping, Tax Advisories, and Management Accounts. We aim to provide you with a complete understanding of your company’s financial performance, which can help you make crucial business decisions. We will review your company’s financial records then they get detailed information about your business. 

Bookkeeping and Accounting, being a complicated process, must be in safe hands. For any expert advice, you can contact our team of expert advisors to see how our bookkeeping and accounting services for your small business can help you.

Bookkeeping Services

10 tips to simplify your business finances with expert bookkeeping services

Running your business is a challenging task. Being the owner, you are bound to play several roles. Sometimes, you play the CEO role; other times, you have to manage your finances or become director of marketing departments to promote your business, and the list is neverending. Besides playing all these roles, you even have to manage your bookkeeping for your business. It is one of the most essential tasks if you want to keep your company afloat, even though it may not be your favorite task.

You are not alone in this boat. Several other business owners also do not find this activity fascinating. Business owners love to admire the ever-increasing profits but hate reviewing the ledger accounts and crunching numbers. However, bookkeeping is essential to your business if you want to track all your expenses and monitor growth. E2E Accounting can help you simplify your finances by providing expert bookkeeping services. With our specialist bookkeeping services, you can easily gain more insights into the feasibility of upcoming expenses and avoid any errors.

Below are 10 bookkeeping tips for small businesses to help get the hang of the bookkeeping process.

Tip 1: Try to keep your personal expenses and business expenses separate.

One fundamental business rule you must follow is to keep your personal and business finances separate! We are sure we are not the first to advise you to adopt this rule. There is a significant reason why everyone suggests you about the same:

  • If you keep your finances separate, you can easily differentiate between your personal and business expenses.
  • You can also easily monitor all your business expenses and avoid any unwanted costs.
  • If you have a separate business account, you can quickly build your credit score, which can be helpful to you in the future.
  • Maintaining separate finances will also give you a better view of your business budgets.

Wondering which bank is best for opening your business account? Check out the best banks in the UK to get started with your bank account for your business. 

Tip 2: Try to make bookkeeping part of your daily routine.

Making bookkeeping part of your daily routine is one of the best and simplest ways to manage your business finances. Rather than doing all the work in the last minutes right before your year ends and tax deadlines, this will only create a panic situation for you. It is always better to do a favor for yourself, take up this task every week, and make it a part of your routine. Block your calendar and prepare your routine checklist of all your tasks, including the following aspects of bookkeeping:

  •       Checking all the invoices
  •       Reviewing and paying all your expenses
  •       Categorising your incoming payments and expenses
  •       Recording the payments
  •       Recording all the receipts
  •       Balancing your business accounts
  •       Filing all the documents in the proper folder
  •       Compiling and reviewing your financial statements

This checklist will help you keep track of your records and stay up-to-date with your finances. You will also feel part of a business, as your books are clean and you can make informed decisions. If you find it difficult to make bookkeeping part of your daily routine, partnering with a professional bookkeeping services: such as E2E Accounting, can significantly lighten the load.

Tip 3: Try to keep track of your cash payments.

With increasing digitalization, even payments towards transactions can easily be made through various online modes. However, there is no hard and fast rule for avoiding cash transactions. The fundamental rule is that you need to pay extra attention while bookkeeping your cash transactions and not lose track of the cash. Following these guidelines can help you avoid cash-related hassles:

  •  Always keep track of all the cash related documents.
  •  Always keep your receipt book handy for every cash transaction.
  • Ensure that you are creating duplicate receipts; one record is for yourself and one for the customer.
  • Keep track of all your cash transactions on the cloud system, linking it through multiple devices.
  • Keep monitoring your cash receipts and cash flows routinely during the weekly bookkeeping task to ensure that all your cashrelated transactions are up to date.

Tip 4: Try to maintain all receipts.

As per the statutory norms, HMRC, IRS, and others can conduct audits for up to six years. It means that storing the records cleanly for at least six years is essential. However, the key benefits of maintaining all the documents in a sorted manner are:

  • Your debits and credits will be recorded correctly. Which means your accounts will show an accurate financial position.
  • You can also keep track of all your accounts receivable and payable.

To do so, you must practise saving all the receipts and invoices and jotting down all the essential notes. Store it by giving it a proper name for all the files and records. Also, ensure that all the records are stored digitally to avoid losing documents.

Having all your documents sorted and stored in one place will avoid chaos and frustration while closing the books.

Tip 5: Try to monitor your accounts receivable and payables.

Late payments will affect your business and relationships with customers or vendors. Also, chasing up the bills at the last moment will make your accounting difficult at the end of the month.

One of the easiest ways to avoid all these hassles is by monitoring your accounts receivable and payable. It is one of the most enjoyable works, especially for small businesses. Make sure all your bills and invoices are paid on time, and you remember all bills or invoices from your previous clients before you move ahead with your next project.

When your accounts receivable and payables are simplified, you will be ensured that all your cash flows are accurate and in constant movement.

Your weekly accounts receivable and payable tasks must include:

  • Sending invoices to the customers
  • Checking your bills, which you are required to pay
  • Clearing paid invoices and bills
  • Recording and tracking payments
  • Noting cash payments to ensure a clear document trail
  • Following up on any unpaid invoices

Tip 6: Try to set aside money for your major business expenses or recurring expenses.

Try setting aside the money for essential recurring expenses, such as rent, insurance, office supplies, etc. Following this practise will help save time for recording those expenses over and over. Setting aside such money will also help you properly budget for major expenses and keep track of such costs during your monthly budgets.

For example, if you are about to acquire an important project but need a larger budget, you can do this only when your expenses are streamlined. When the money is set aside beforehand for recurring costs, you can easily visualise how much your budget for the new project is over the period.

It can be tempting to push bookkeeping to the back of your mind, especially when you’re overwhelmed with other business needs. But bookkeeping should be a priority if you want to keep your business up and running. Set some time aside weekly to check your transactions and ensure they tally with your purchases. It will make things easier at the end of the month. Or you can get help from professional bookkeeping services like E2E Accounting to help you keep your books up to date.

Tip 7: Try to set aside money for paying your business taxes.

While you are keeping track of your business finances, it is also essential that you set aside a certain amount of money for paying your business taxes. You will not prefer to miss all the tax payments due to inadequate finances. When your books are well maintained, you will get an idea of how much tax you will pay for the financial year and accordingly set aside the relevant provisions. In short, tracking your finances is not limited to keeping track of your expenses; when you follow your finances smartly, you also set aside money for paying your business taxes. If you feel that you are unable to keep track of your business finances and set aside money for your taxes, partnering with a professional bookkeeping services: such as E2E Accounting, can provide you with effective tax advice and manage your finances.

Tip 8: Try to review financial reports consistently.

By regularly updating your books each week, you can easily pull your financial documents that are true and reliable whenever required. Your accounting software will help you quickly generate financial reports at the click of a button, be it for the current month, current quarter, year, or only for today. If your finances are readily available, you can share them with others whenever required. Therefore, it is always advisable to check your finances regularly.

Tip 9: Try using automated payroll systems.

Payroll forms one of the most substantial expenditures for your company. Sometimes, you pay your employees through bank transfers or manual monthly payments. However, this can at times create discrepancies. As an employer, ensuring timely payments to your staff can also help you build stronger relationships and trust within the team.

That’s why opting for automated payroll is the optimal approach to maintaining efficiency and punctuality for everyone involved in this process.

Tip 10: Try automating your record-keeping.

The most effective approach to simplifying bookkeeping for new businesses is to explore methods for automating recordkeeping, often achieved through the utilisation of online accounting software.

There are several online accounting software options available on the market that are tailored specifically for new businesses. These platforms typically provide users with a range of functionalities, which include fundamental day-to-day administrative tasks such as:

  • Automating bill payments
  • Generating invoices
  • Integrating bank account details and transactions
  • Utilising budget dashboards
  • Creating financial reports

By opting for automation for your bookkeeping processes, you’ll free your valuable time to concentrate on other aspects of managing your business. Nevertheless, it’s imperative to conduct thorough research before committing to a particular software solution since the needs of each business can vary significantly. If you find it difficult to use accounting software, partnering with a professional bookkeeping services: such as E2E Accounting, can significantly lighten the load of understanding and using software.


Delegate the task to experts. Do you know what’s even more effective than relying on software to automate your bookkeeping? By entrusting the responsibility to a professional bookkeeper. 

Your business demands your undivided attention, and sometimes the simplest choice is the wisest one – outsourcing tasks that you don’t have the time for allows you to concentrate on the tasks that truly matter to you. A professional bookkeeper possesses the expertise to handle the intricacies of bookkeeping, relieving you of the burden and enabling you to focus on revenue generation rather than documentation.

In conclusion, it’s evident that maintaining accurate financial records plays a crucial role in the success of small businesses in today’s fiercely competitive market. While the task may appear daunting, partnering with a professional bookkeeping services: such as E2E Accounting can significantly lighten the load and unlock numerous advantages.

E2E Accounting offers expert support and specialised knowledge to help small business owners streamline their financial management. By leveraging their services, businesses can ensure that their records are well organised, up-to-date, and compliant with tax regulations and other relevant laws. Get your finances in order with E2E and arrange a consultation to connect with one of our experts.

Payroll Services

8 Advantages of Hiring Expert Payroll Services to Enhance Your Business Growth

With the advancement of technologies and the evolution of the working culture, several companies, irrespective of their size, are now opting to outsource certain business functions. Hiring professional services has become a common phenomenon, and companies prefer them rather than hiring in-house experts and training them.

With the increase in digitalization and the availability of several platforms to rate the company, it has become effortless to go public, even for the slightest issue.

Consider the following scenario: you have made several efforts to acquire exceptional people to join your firm, but these potential talents are not joining you because they have heard that your company’s salaries are not paid on time or that payment problems occur. It will have a direct impact on the reputation of your organisation.

Companies are now opting to hire third party services for their various functions to save themselves from any such embarrassment. One such largely outsourced function is payroll processing. Salaries are directly related to the welfare of the employees and are one of the most important aspects of running the business effectively.

Believe it or not, it has become difficult for several companies to manage their payroll processes in-house. Therefore, they are now hiring professional firms like E2E Accounting to process payroll. E2E Accounting Firm is the most financially smart decision you can make for your payroll processing services, leading you to enhance your business growth.

Find out how many companies in the UK have opted for payroll services to process their payroll.

A whopping 61% of British businesses opt for payroll services for their company’s payroll process. And they have been doing it for a very long time. 

Hang on; this blog will eventually help you understand whether you need to hire payroll service providers to process your payroll. What are the benefits, and why is hiring them a brilliant idea for your business?

Who are Payroll Service Providers, and Why hire them?

Payroll service providers are the third parties who will take complete responsibility for your entire payroll process, from managing your employee’s salaries to other financial benefits. They will process all the financial transactions between you and the employees, which includes calculating their salary, bonuses, benefits, and any other reimbursements and making necessary adjustments, tax deductions, NI’s, and much more.

Why hire them is simple. Many businesses ask this question; if you are also thinking like them, you must continue reading until the end of this blog.

We know payroll can be done in-house, but you need proper finance and an HR team to take care of your payroll. But nowadays, firms also prefer operating remotely and hiring employees who want to work remotely. The benefit of remote working is that you can also employ international employees if they are highly talented. But it also means that you have to make international payments as salaries, and the calculations must be correct. But it also involves complex calculations and regulations.

The best way to avoid all these complexities is to opt for third party payroll services and let them handle it. Isn’t it the perfect way to distribute salaries to employees effectively?

Still have further questions? Below are the Eight reasons why you should consider third party payroll services.

1. Cost Effective

Whether you are paying salaries and benefits every week, every month, or every year, calculating and processing them is a time-consuming task. Though it seems easy to do, the fact is that it is entirely the opposite. Only if you have adequate knowledge of finance and legislation; you will be able to process it.

You must recruit an in-house professional at a high salary to process the payroll. You will also have to purchase payroll software, which can be expensive, and take training for the software.

To avoid all these hassles and adopt a streamlined approach, companies are now considering hiring payroll service providers like E2E Accounting to perform this task, which is cost-effective and saves both time and money.

2. Works well irrespective of the size of the company

No matter what the strength of your company is, whether you are:

  • A start-up with 10–50 employees or a large firm with over 5,000 employees.
  • Hiring third-party payroll services will help you save time to focus on other core areas.
  • Leading to your company’s growth.

You also avoid mistakes while processing the payments and avoid any discrepancies with the employees or government.

3. On time! Every time

If you are hiring experienced payroll service providers like E2E Accounting, be assured that your salaries and benefits are processed and released within the stipulated period every time! They are faster and process with complete accuracy compared to regular employees in-house.

4. Real-time Reporting

Generally, these service providers use portals or other systems wherein your employees are supposed to mark their attendance or fill out time sheets and further details. Since they are third–party people, complete transparency is maintained, and up-to-date reports are generated in real-time on the payroll status of employees and any other payroll–related matters.

5. Compliance

Hiring payroll services from firms like E2E Accounting ensures you comply with the ever-changing compliance reporting and legislation. All your RTIs will be filed on time, avoiding costly penalties.

6. Flexibility

Payroll service providers provide a flexible payroll solution that can be adjusted to match your company’s payroll processes and demands.

7. Data Security

These payroll service firms use the latest cloud-based technology for payroll management and work in accordance with industry-standard security measures to ensure your payroll and workforce management data is secure and safe at all times.

 8. One Company for All Locations

You don’t need teams everywhere if you have offices worldwide. You also do not need to engage with different payroll service companies. One company can handle your operations for all the locations, just like E2E does.

Points to consider while hiring third-party payroll services

If done correctly, payroll services may be helpful to your organisation. So, while hiring these professionals, there are a few things to remember. They are as follows:

  • Be careful while sharing data: When you hire payroll professionals, you share sensitive information about your employees. They can also determine the company’s financial situation. As a result, you must exercise caution and design a system that prevents data misuse. A legal document is essential.
  • Hire registered firms: Never trust a novice with your money. Hire only registered payroll service firms, such as E2E Accounting. It is always advisable to conduct background checks before making a decision.
  • Stick to your budget without compromising: True, you will have a budget in mind, but be bold and spend a few pounds on a reputable service provider. Never go for the cheapest price since you can lose everything.
  • Always provide them with updated information: At work, things change. Employees leave, and new ones are hired. Always keep your employees’ information updated and share it with companies.

Final Thoughts

When selecting a payroll service provider, ensure they understand employment and payroll regulations. Ensure you check the provider’s credentials to verify your trust in their capacity to provide the best payroll services. Also, ensure the provider has a comprehensive payroll solution that meets your needs.

E2E Accounting is a professional accounting firm in Coventry, UK. We offer a wide range of services, which include Payroll Processing, Monthly Bookkeeping, Year End Accounts, Tax Advisories, and Management Accounting. We aim to provide you with a complete understanding of your company’s financial performance, which can help you make crucial business decisions and lead you to enhance business growth. After getting detailed information about your business, we will review your company’s payroll process. 

We also provide additional services like updating your business trends, opportunities, threats, projections, and forecasting. Also, we prepare business reports on behalf of your company for compliance purposes and to coordinate with government agencies and concerned authorities.

Payroll, being a complicated process, must be in safe hands. For any expert advice, you can contact our team of expert advisors to see how our payroll and accounting services can help you.

Year End Accounting Services

Year-End Accounting Services: Your Pathway to Financial Prosperity in 2024

As the year ends, you must eventually evaluate your financial conditions and consider how to pave your way to prosperity in 2024. Year End Accounting services generally play a crucial role in helping you achieve your company’s financial goals. In this blog, we will basically explore the significance of year-end accounting services and how they can help you achieve financial success in the coming year. Indeed, E2E Accounting Firm might just be the most financially intelligent decision you can make for your year-end accounting services, leading you to your pathway to financial prosperity in 2024.

Assessing Financial Health

One of the significant benefits of opting for year-end accounting services is that you will get a comprehensive assessment of your company’s financial health. Your service provider will eventually review your income, expenses, debts, and investments to understand your financial situation. This analysis will finally help identify areas for improvement and help you set the foundation for your financial planning for the coming year. Meanwhile, Hiring professional accounting services like E2E Accounting can help you provide expert advice for your business by assessing the financial health of your company.

Optimising Tax

Effectively planning your taxes is essential to maximising your financial prosperity. End-of-year accounts services include all the necessary analysis for tax planning to ensure you can take full advantage of the deductions and tax credits. Thus, you can significantly reduce your tax burden and save more funds as investments to reach your financial goals. E2E Accounting will significantly help you provide expert advice on how you can optimize your taxes efficiently to ensure you take full advantage of your deductions and credits.

Managing Budgets and Expenses

Yet another critical cornerstone for financial prosperity is effectively managing budgets and expenses. Year-end accounts service providers specifically analyse all your spending. With the help of this analysis, you can quickly eliminate unnecessary costs and develop a realistic budget tailored to your financial objectives. E2E Accounting can help you prepare your budgets, forecast, and conduct a thorough analysis of your expenses.  This practical approach will ensure that you control your finances throughout the year.

Investment Strategy Review

Investments play a crucial role in the accumulation of wealth. Accounting professionals can help you assess and evaluate the performance of your investment portfolio and provide you with the necessary recommendations and strategies to help you align your investments with your financial goals. E2E Accounting can help you strategize your company’s investments. Thus, you will be assured that your assets are working for you and contributing to your long-term prosperity.

Debt Reduction Planning

Debts with high-interest rates can substantially drain your finances. Year-end accounting services generally include reviewing your debt obligations and helping you implement strategies to reduce your debts efficiently. E2E Accounting can guide you minimize your debts, improve your financial health, and free up your funds for future savings and investments.

Financial Goal Setting

Setting clear financial goals is essential to achieving prosperity. Your year-end accounts service providers or experienced accountants can specifically help you develop realistic, measurable goals for 2024 and create a strategic roadmap to reach these goals. Together with E2E Accounting by your side, this goal-oriented approach will keep you focused on your financial goal of attaining prosperity.

Risk Assessment and Insurance Review

Protecting your financial well-being is just as important as expanding it. Year end accounts services include a review of your insurance policies and strategies relating to risk management. We at E2E Accounting can ensure you have appropriate coverage to protect your finances against unanticipated events, which can help you achieve your financial well-being.


Year end accounting services are about more than just crunching numbers. They also ensure that your pathway towards financial prosperity in 2024 becomes easy. By leveraging the expertise of accounting professionals, you can evaluate your financial health, optimise taxes, manage budgets and expenses, and set clear goals by assessing risk, reducing debts, and planning investment strategies. With these services, you will be well-equipped to navigate the financial landscape and work towards a prosperous year ahead. Start the year on the right financial footing by investing in year end accounting services, and watch your financial dreams become a reality.

E2E Accounting is a professional accounting firm in Coventry, UK. We offer a wide range of services: Monthly Bookkeeping, Year End Accounts, Tax Advisory, Payroll Processing, and Management Accounting. Our aim is to provide you with a complete understanding of your company’s financial performance, which can help you make crucial business decisions and lead you to your pathway to economic prosperity in 2024. It allows you to review your company’s financial records after getting detailed information about your business. 

We will also provide detailed updates about your business trends, opportunities, threats, projections, and forecasting. We can also prepare business reports on behalf of your company for compliance purposes and to coordinate with government agencies and concerned authorities.

Accounting, being a complicated process, must be in safe hands. For any expert advice, you can contact our team of expert advisors to see how our accounting services can help you.

Accounting Services

7 Reasons Why Your Business Needs Professional Accounting Services

You’re the one who juggles all the responsibilities, diligently examining every aspect and giving your 100% towards the growth of your business. Yet, some critical areas, such as money management and other financial segments, can create confusion if overlooked or not rightfully focused. These corners are accounting, payroll, invoices, handling receipts, and following tax deadlines. If you miss all these corners, your business can fall from the edge.

What are professional accounting services?

Accounting work is one of the most critical aspects of the business. It is also time-consuming since it requires adept knowledge of bookkeeping and accounts. Professional accounting service providers are the ones who provide complete accounting services, right from managing your monthly bookkeeping to managing your payrolls, finalizing your year-end accounts, and filing your taxes within the set deadlines. They are specialised and have diverse knowledge in accounts and taxation. Additionally, these accounting service providers provide financial advice and guide you through budgeting and forecasting for your business to derive the best outcomes.

Taking into account these factors that emphasize the importance of concentrating on accounting, hiring a professional and experienced accountant. E2E Accounting firm might just be the most financially smart decision you can make.

7 Reasons Why Your Business Needs Professional Accounting Services.

Several small businesses think hiring professional accounting services is way too expensive for them and will not benefit their company. According to the survey conducted by Premierline, 40% of the small businesses within the UK are considering outsourcing their accounting services to professionals. 

1. Saving time

Being a business owner means having your plate always full. So, it is essential to have adequate time management for efficiently managing things and growing your business. But if you do not have experience handling your accounts and expenses, you will spend a lot of time on this task. Hiring professional accounting services like E2E Accounting can help you provide expert advice for your business finances and handling your company’s accounts, payroll, and taxes. It will help free your plate from financial matters and save time for you to focus on other essential aspects of your business.

2. Knowledge about your funds

Small businesses must consider saving every penny of their business. It is only possible when you have updated your books on time and recorded all transactions. You will get the idea of 

  • Whether you have enough funds to scale your business
  • Receiving your payments on time
  • Status of your in-hand cash balance in case you want to spend some. 

But it’s not always possible for you to spend time updating your books regularly. However, professionals who manage your accounts will update your books on time. You will quickly get real-time details of your funds (money coming in and going out of business). You can also easily compare your sales and expenses, prepare budgets, forecast your future growth, and make critical decisions with the help of financial reports. Thus, you can quickly scale your business under professionals’ expert advice and guidance and by minimising risks.

Based on the survey conducted by YouGov, nearly 30% of UK companies believe that they have achieved better results by letting professional accounting services handle their books.

3. Pocket Friendly

Many small businesses presume hiring professional accounting services is expensive. But the fact is that hiring professional accounting services leads to savings for your business. 

  • No need to hire an in-house accountant.
  • No need to purchase any accounting software or manually maintain books. 
  • Easy and correct payroll processing.
  • All your compliances will be filed on time, saving you from penalties.
  • Correct Valuation of all your business assets and properties.
  • You will have a proper tab on your funds.
  • You can easily follow up with your creditors for payments.

Thus, spending a small amount of money and hiring professional accounting services can help you streamline your process and save money to invest in the growth of your business.

4. Easy Accounting

Errors can be expensive for any business! If you are maintaining your accounts manually, there are high chances of making errors. Also, if you have accounting software but need adequate knowledge, there are chances of mistakes. So, the intelligent way to avoid errors is automating your financials and collaborating with professional accounting services who have sufficient knowledge of accounting as well as accounting software and maintaining error-free books. 

5. Data Security

Data Security is a crucial aspect of any business. Maintaining security of your client data, financial records, and other sensitive information relating to your business is essential. By implementing the appropriate cyber-security systems, your professional accounting service providers will ensure that all the necessary data protection standards are adhered to and that your data is protected from any cyber threat.

6. Tax Ready 

Taxes always induce anxiety no matter what line of business you are in. Using professional experts’ help is a good idea to get peace of mind and remain stress-free. Your professional accounting service providers can also help you file all your tax returns on time and accurately. They will also guide you in maximizing your deductions for tax purposes. They will also ensure all the taxes are paid correctly and on time by sending you timely reminders. This way, you will avoid penalties and remain compliant with all the tax laws.

7. Payroll

Payroll is yet another time-consuming task for businesses and involves several components. With constant changes in payroll legislation, managing and keeping up with these legislations becomes difficult. Professional accounting service providers can also help by taking complete responsibility for your payrolls. They will ensure the payroll process is completed on time and accurately. They will also ensure that all the RTI filing and tax payments are done before the deadlines.

Final Thoughts

Deciding whether to seek help from professional accounting services can help you save time and money, relieve stress, and provide several other benefits. Although PA Consulting Group conducted a survey wherein 71% of UK businesses say cost reduction is the main reason for outsourcing. 50%, on the other hand, quote the reason outsourcing leads to business transformation. In contrast, for half of the companies surveyed, the quality of the service provided is the key driver for outsourcing professionals.

E2E Accounting is a professional accounting firm in Coventry, UK. We offer a wide range of services, which includes Monthly Bookkeeping, Tax advisory, and Management Accounting. We aim to provide you with a complete understanding of your company’s financial performance, which can help you make crucial business decisions. It will help us to review your company’s financial records; they get detailed information about your business. 

We will also provide detailed updates about your business trends, opportunities, threats, projections, and forecasting. We can also prepare business reports on behalf of your company for compliance purposes and to coordinate with government agencies and concerned authorities.

Accounting, being a complicated process, must be in safe hands. For any expert advice, you can contact our team of expert advisors to see how our accounting services can help you.

Forecasting For Small Business

Tips for Forecasting Your Small or Medium Business’s Financial Future

How far is your range of vision for your business? Simply grabbing green economy opportunities? Investment in new capital expenditure? Dominate the world through expansion at various locations?

Either way, gathering accurate financial insights and projections for your small and medium-sized business is necessary. It will help you adequately plan your future. Financial Forecasting (Projections) will also help you understand every step leading to the growth of your business and hit those desired numbers you wish.

Financial forecasting will provide the glimpses essential for your business’s survival and growth. Based on these insights, you can make predictions for the future of your business, which you can hold. So, it is necessary to have forecasting at the top of your mind, whether your business is a startup or SME.

What is Financial Forecasting?

None of the business owners can predict the future of their business. But there are steps that you can take to prepare your small and medium-sized business for this unforeseen business landscape. For a precise overview of your financial affairs, one of the reliable options is to create projections/ forecasts.

Forecasting will help you look into your business’s historical and present performance as well as current market trends. With the help of this data and examining it effectively, you can predict the future performance of your finances. You can also gauge the revenue you can earn during a particular period and manage your expenses efficiently.

Forecasting involves a small number of assumptions and guesswork since unforeseen factors can influence your business performance. But through strategic planning, budgeting, and predictions, you can maintain your mindset focused on the future of your business.

I do prepare budgets; is it different from forecasting?

Though budgeting and forecasting go hand in hand, they are two different aspects. Preparing budgets means keeping aside some money for certain costs, considering your income and expenses. Your budgets are based on the information derived from your financial forecasts.

Forecasting is predicting the future, and budgeting is planning for the future. When you prepare your financial forecast, you get insight into which direction your business will head based on your historical performance and several other factors. At the same time, budgeting will help you to spend effectively on how and what you expect your financial position to look like in the future.

For example, suppose you forecast to earn additional revenue of £1,00,000 in the next year. In that case, you will prepare a budget for how much you will spend to earn that revenue. Say you will keep aside £10,000 for advertising, £20,000 for stock, etc.

Accurate forecasting can help you make stable business plans, acquire potential investors and external funding sources such as loans and lines of credit, make informed business decisions, and prevent surprise tax bills, as per the Authors Kaplan, Steven N., and Richard S. Ruback, in their journal article on “The valuation of cash flow forecasts: An empirical analysis.” But to achieve this, you must prepare “Pro forma financial statements.” Financial predictions are concrete only through Pro forma financial statements.

What are the methods used for forecasting?

You can use two standard methods to forecast your business finance: Qualitative and Quantitative. But which way is more viable for you depends on how long you have been in business. Besides these two methods, it is also necessary to prepare pro forma statements.

  • Qualitative forecasting: Qualitative forecasting, also known as Research-based forecasting, is the method wherein you make business predictions without analyzing your historical data. Generally, this method of forecasting is advisable for new businesses wherein they need more historical data (sales and expenses), and such companies highly rely on the judgments of accountants or financiers who prepare the forecast for them.
  • Quantitative forecasting: Quantitative forecasting, also known as historical forecasting, is the method wherein you make business predictions only after analyzing your historical data. Thus, with the help of measurable data, you can gauge the growth of your business. This method is more commonly recommended for short-term forecasting. Yet this method will also include a little bit of research to create a realistic and valuable forecast.

What are Pro forma financial statements?

Pro forma financial statements are similar to your financial statements, only that you use every month to analyze the performance of your business. The only difference between both statements is that pro forma statements are prepared for the future months and years, and the financial statements are for the current period.

Pro forma statements are of three types, which you are already familiar with

  • Income statement
  • Cash flow statement
  • Balance sheet

The period covered in the pro forma statements depends on your goals and how long you plan to forecast. If you want to forecast the next six months for a particular project, you will create a pro forma statement covering six months to a year in the future.

But if you are planning to meet a potential investor for financial aid, you must prepare your pro forma statements covering the next three to three years.

How do you create pro forma statements?

Before starting to create pro forma statements, you must set your projected goals clearly towards the period you are looking at.

Pro forma income statement

So, if you are preparing a pro forma income statement, you must be clear about the sales you are targeting to achieve. For example, if your current year’s sales are £50,000, and you want to make sales of £1,00,000. Therefore, your total increase in sales will be £50,000.

Thus, you need to set your production schedule in such a way that it will help you reach your target and map it over the period in which you are aiming to cover. Since this sales target is 12 months, you will map out a £50,000 increase over the 12 statements. It could be done either by increasing it based on the fixed amount or increasing it gradually every month, based on your instincts and experience.

Accordingly, you will also calculate your COGS (Cost of goods sold) for all the months and reduce it from your sales. Similarly, you will also deduct other operating expenses. Remember to take each and every expense into account for making accurate projections, be it quarterly or half-yearly.

Once all the income and expenses are done, you will arrive at your profit or loss, and your pro forma statement will give you an insight into your expected earnings and spending for the desired period.

Example of Pro Forma Income Statement

Tony’s Logistics

Pro forma Cash flow statement

Creating a pro forma Cash Flow Statement is similar to making a regular cash flow statement only. So, you consider all the details from your income statements and use them in the cash flow statement to determine where and how much your money is going.

Thus, the cash flow you have projected will give you insights into a few things, such as negative cash flow, which means you do not have enough cash to run your business based on your current trajectory. So, it would be best to borrow the money and pay off your expenses. At the same time, positive cash flow means that you have surplus cash in hand for paying off your loans and savings for investments.

Example of Pro Forma Cash Flow Statement

New Wales Care Home Centre

Pro forma Balance Sheet

The info derived from the income statement and cash flow statement; you can easily prepare a pro forma balance sheet. But the critical aspect here is that you also need to consider your previous balance sheets through which you can use all your balances. The pro forma balance sheet will project all the changes in your accounts over the period, and you can plan from where you have the money and when you have to move the money.

Example of Pro Forma Balance Sheet

Kate Florist

Revisiting the Forecasts

More than creating the pro forma statements and preparing forecasts is required. You can’t sit back and relax. The most important is the second stage of financial forecasting. You now have to revisit and record your actuals with your forecasts and compare each month to the period you have done forecasting.

We at E2E Accounting believe that only when you revisit your forecast details will you learn whether your forecast is way off or not.

For example.

  • In some months, if the sales were lower than expected, you can take notes on the reasons for low sales. Whether the inventory forecast was inappropriate, or there were changes in the demand, or any miscommunication with the suppliers, etc.
  • If the revenue was higher than forecasted, you can note what boosted the income, whether it was seasonal or any other reason.

Thus, revisiting and taking notes will help you provide valuable insights into your business to improve your forecasting each time than the last one.

Below are the few strategies that we recommend:

  • Timings of the forecast: Timings are one of the essential aspects of forecasting. How far you must look depends on your business and its characteristics. You must break down your forecasts over the period, say a year, three years, or five years.
  • Regular updating: You must also regularly revisit and update the forecasts prepared. It will help you get the complete picture of your business.
  • Keeping track every month: Keep track of your revenues and expenses every month to forecast your revenues, how much sales are taking place, what your expenses are, and whether any contractual obligations are involved. Which item will lead to higher expenditure, and whether any future obligations will take place?


Businesses experience ups and downs; what truly matters is your ability to consider all potential scenarios for your business. It’s impossible to predict everything, so it’s always best to forecast for all possible scenarios: regular, moderate, and worst.

According to E2E Accountant, forecasting is as much as preparing the household budget. Just like you prepare a budget for your household expenses and savings, every SME must also forecast similarly. You must know which forecasting method best suits your small and medium-sized business.

Ultimately, the stronger your forecast, the more effectively you can strategize for your business’s future, adapt to changing circumstances, and impress your investors and lenders.

We at E2E Accounting can help you create financial forecasts for your business using software that can help you make effective decisions that can lead you to growth and stay ahead of your competitors. By outsourcing your Management Accounting needs to E2E Accounting, you can be assured that all your financial reports, budgets, and forecasting are accurate while freeing time for other essential tasks!

10 Ways to develop a business plan that works for your small

10 Ways to develop a business plan that works for your small or medium size business

Starting your own business requires thorough planning, while efficiently scaling your small and medium-sized enterprise can be gradual. Driving it to success requires a strategic approach by developing a proper business plan and whole-hearted commitment from everyone working with you in your company.

There isn’t a one-size-fits-all, straightforward strategy that applies universally to small or medium-sized business owners seeking growth. Nevertheless, one of the most crucial elements in advancing your business is consistently keeping tabs on and assessing your financial well-being. By maintaining robust financial health, you open the door to the rapid implementation of various other growth strategies. To ensure the ongoing monitoring of your financial health, it’s imperative to update your financial records regularly.

With up-to-date financial records at your disposal, you gain access to real-time insights into your financial reporting and cash flows, allowing you to determine the profitability of your business. Well-maintained cash flows enable you to make informed decisions about scaling your business through thorough research and market understanding, allowing you to identify the best growth opportunities. E2E Accounting can help you maintain your books of accounts accurately so that you can have all the real-time insights of your financial reporting.

In addition to monitoring your financial health, E2E Accounting also suggests several essential tactics you can employ to maximize your business’s potential for growth.

10 Smart business plan approach to help you scale your business.

1. Thorough Research

Driving your business to growth requires thorough market research. It is necessary to understand not only existing customers but also your potential customers. Having enough insights about your target market and gaining knowledge about their desires and needs is essential. This way, you can check whether you can change to meet those customers’ needs and grow your business.

For example, research your target markets by analyzing customer demographics, conducting surveys, and studying historical sales data about companies performing well. It will help you to understand their position in the market.

Another essential aspect you must remember is researching your competitors. It is necessary to know the strengths and weaknesses of your competitors, which will help you make appropriate decisions.

Case Study on Business plan developed by Canon to generate a 700% ROI.

Canon, one of the biggest electronics companies globally, tasked AWA Digital to gauge and increase its product’s demand in various geographies. AWA conducted thorough customer research through a market survey of their target markets, and they discovered the below attributes of their customer’s behavior and reservations towards purchasing their products.

  • In a few regions, customers were reluctant to spend their money on Canon cameras as they were unsure whether Canon is an authoritative brand.
  • Whereas, in other regions, the brand authority needed to be more critical for the customers.

With the help of these insights, AWA developed a business plan to optimize their advertising campaigns based on the locations through which they can include what the consumers considered essential factors for purchasing.

This feedback from customers helped Canon generate an overall ROI of 700% using personalized campaign methods for its target audience.

2. Sales Funnel

A sales funnel can be presumed to be a customer’s journey. It helps you take your business to the next level. Customers visiting your website are at the top of your funnel, and when they purchase something from your website or sign up for your services, they are the ones successfully passing through your sales funnel. Hence, you must develop innovative ideas through discounts or vouchers, which can push your customers through this funnel and make sales.

For example, Twilio offers its developers Communication APIs services through which they can quickly implement embedded voice calling or texting in a software application or their products. Twilio understands the importance of this communication to its audience, and they are experts at it.

Twilio uses the sales funnel strategy for its growth. With the help of this strategy, Twilio’s potential customers can easily consider them as their potential vendors through the keyword search “Communication APIs,” as Twilio ranks high in search.

Its prospective clients can also quickly locate them on social media channels through self-paced games prepared by Twilio for learning or their blogs. The prospective clients can create free accounts or talk to sales representatives through help guides.

The website visitor becomes the sales lead for the company through the information collected via an opt-in form.

Finally, these leads are converted to sales through the solutions provided by Twilio upon satisfactorily addressing all the concerns and questions.

3. Customer Retention

Growing your business is possible only if you can retain your customers. Customer retention only increases when you can build and maintain customer loyalty. Acquiring new customers is five times more than holding on to existing customers; this can be done only,

  • When you treat your customers right, address their concerns, and provide a high customer experience.
  • Create loyalty programs for them in the form of rewards. It will also help you in attracting new customers.
  • Using a CRM (Customer Relationships Management) system will help you manage and maintain relationships with existing and potential customers by identifying sales opportunities.
  • Engaging customers through email campaigns and social media platforms by gathering customer feedback and understanding their pain points or complaints. It is achieved only when you are in constant contact with your customers.

Case Study – Business Plan of Spotify to Retain Its Customers.

Spotify retains its customers through the beginning of its customer relationship. They provide the lists of their new customers with several reasons to stick around with them. Though Spotify offers free apps, its Premium subscription provides more functionality to its users, such as ad-free music listening, selecting, skipping, and downloading music and playlists. However, it is not necessary that providing these features will encourage their users to upgrade to Premium plans. Spotify developed a business plan where:

  • Spotify prioritizes high-quality services to its customers.
  • They ensure that their customers’ experiences are as personal as possible.
  • They encourage their customers to share their experiences.

4. Networking

Making your brand visible is also one of the best ways to grow your business. It helps in attracting new customers. One of the explicit ways to showcase your brand is by participating in various events. It will increase your networking and gathering information on the preferences of local customers.

Examples of networking:

  • You can put your booth in various malls or exhibitions.
  • Meet business owners
  • Speak to industry experts.

5. CSR (Corporate Social Responsibility)

Corporate social responsibilities help you recognize your business’s impact on the community. Generally, many customers prefer doing business with companies that align with their values. See if your product can go green and does not impact the environment.

Examples in which you can Go Green:

  • Reduce carbon footprints
  • Get Certified for LEED (Leadership in Energy and Environmental Design).
  • Produce sustainable and environmentally friendly products.
  • Invest in activities that showcase your business is involved in serious CSR. You can encourage your staff to work with such communities voluntarily.

6. Strategic Partnerships

Partnering with another business opens the chances of broadening your network with new customers and aligning growth strategies. However, these partnerships must be exercised strategically and only with the ones where your business goals align. You can also consider partnering with vendors to expand your business. But, no matter how and with whom you partner, maintaining a healthy relationship with your partners is essential.

The best example of a strategic partnership is Starbucks. Starbucks strategized to partner with national stores such as Target and Barnes & Noble and reached nationwide, thereby increasing its revenue.

7. Franchise

Franchising is one of the best strategies for growing small and medium-sized businesses. You sell your business rights to an independent owner, and they operate their franchise for your business. However, it is essential to understand whether your business is franchisable before you sell your rights. Franchise often works best for fast-food chains, gyms, restaurants, electronic and automobile products.

McDonald’s, Starbucks, and Marriott hotels adopted the business plan of opening their franchises which helped them increase their numbers at several locations to grow their business and generate revenues.

8. Diversifying

Once you are successful with your main product or service, you must consider planning to introduce new products or services. The introduction of new products can help you acquire new customers.

  • Identify new opportunities to introduce new products or services.
  • Conduct thorough market research to see what new products or services you can offer.
  • Identify the different means of offering your existing products to the customers; for example, introduce subscription methods or packages.

One of the best examples of diversification is Coca-Cola. The company diversified its offerings with several bottled water brands, energy drinks, juices, sports drinks, teas, and vitamin water. This diversification allows the company to survive and flourish even if the demand in one central area slows down.

9. Entering New Markets

No doubt, franchising can help you extend and increase your customer base. But if you need more than franchising, then to expand your business, you must consider exporting your products or services through e-commerce. Find the right opportunity for online sales and the best means to national and global platforms. It will help you to increase your market share on global platforms.

10. Measuring and Refining

You can apply various strategies to grow your business. But it is equally important to understand and measure which approach works for you and which does not. For example, whether the loyalty program will improve your customer base and help you retain your customers. If this strategy is not working, you need to apply another approach. In such cases, the CRM strategy might work for engaging your customers, or email campaigns and social media platforms can be a better option. Thus, timely measurements and refinements are essential for the growth of business.


Taking calculative risks to grow your small and medium-sized business would be best. You must scrutinize your business plan and create realistic and precise projections regarding how specific strategies could impact your enterprise. Constantly tracking and monitoring your progress and implementing amendments are necessary for a successful business. 

We at E2E Accounting can guide you in building strategies to help you grow your business through effective financial decisions & understanding your company’s financial health. By outsourcing your accounting needs to E2E Accounting, you can be assured that all your financial reports are accurate while freeing time for other essential tasks!