A month-end close checklist for small businesses
Ten steps to close your books properly every month, in the right order.
Outsourcing bookkeeping can free your team for higher-value work and smooth out the January peak. But the client relationship, and the regulatory responsibility, stay with your firm. These are the questions worth asking before you hand over a single client.
Ask whether the work is done by the person you're speaking to, by a team, or passed on again. Ask where the work is done and where data is stored. If personal data leaves the UK, you'll need to consider international transfer rules under UK GDPR.
Bookkeepers providing services in the UK fall within the Money Laundering Regulations and must be supervised, usually by HMRC or a professional body. Ask for their registration. ICAEW guidance also makes the point that when your firm subcontracts work, the AML responsibility for that work stays with you. The subcontractor is treated much like an employee, so your contract should require them to follow your AML procedures and report any suspicion to your MLRO, and you should include them in your screening and training.
Under UK GDPR your firm is usually the controller and the outsourcer a processor, and Article 28 requires a written contract between you covering what they may do with the data, security, confidentiality and deletion at the end. Ask about:
The smoothest arrangements use your firm's own Xero, QuickBooks or FreeAgent practice subscriptions, your practice manager and your receipt capture apps. That keeps the data in your control and lets your reviewers see every change.
A white-label provider works behind the scenes. Agree in writing whether queries go through you or direct to the client, and that the provider will never market to your clients.
Agree deadlines per client and how far ahead you need to book extra capacity for busy periods. Ask what cover exists for holidays and illness.
ICAEW guidance suggests you should expect a subcontractor's work to be covered by their own professional indemnity insurance, and that you notify your own insurers. Review your client engagement letters too, so they allow you to use subcontractors.
Common models are an hourly rate for ad hoc work, a reduced rate for a monthly block of hours, or a fixed monthly fee per client. Fixed fees make it easy to build into your own pricing and protect your margin.
I provide white-label bookkeeping, payroll and year-end records preparation for accountancy firms, working in your systems under an NDA and data processing agreement, with over 12 years' experience in top 10 UK accountancy firms.
This article is general information, correct at the date it was last reviewed. It isn't tax or legal advice, so please speak to your accountant about your own circumstances.
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