In many small businesses the accountant sees the books once a year, as a spreadsheet export or a box of paper, and spends weeks fixing what could have been fixed in the month it happened. Accounting software lets both sides work in the same ledger. That only helps if the split of work is clear.
Who does what
| Task | Business | Accountant |
|---|---|---|
| Capturing receipts and invoices | yes | |
| Coding everyday transactions | yes | reviews |
| Monthly bank reconciliation | yes | reviews exceptions |
| VAT return preparation | prepares or reviews | often prepares and files |
| Year-end adjustments (accruals, depreciation, tax) | yes | |
| Statutory accounts and tax returns | yes |
Agree this in the engagement letter, so neither side assumes the other is doing it.
Access
Give the accountant their own login, never a shared password, with the access they need: usually full bookkeeping access, with the ability to lock periods once a VAT return or year end is final. A separate login means changes are traceable to the person who made them.
A monthly or quarterly rhythm
- The business closes the month: documents captured, bank reconciled, questions noted.
- The accountant reviews: unusual postings, suspense balances, VAT codes on large items.
- Queries are answered on the transaction itself, with the document attached, rather than by email.
- The period is locked once both are satisfied.
Year end without the scramble
If the review has happened each quarter, the year end is mostly adjustments: stock, accruals and prepayments, depreciation, the corporation tax charge. The accountant posts those journals directly in the ledger, so the books and the statutory accounts agree, and next year’s opening balances are right without re-keying.
Common friction points
- The accountant posts year-end journals in their own software and the business ledger never gets them.
- Old periods are changed after a VAT return was filed.
- Questions sit in an inbox instead of next to the transaction.
If you do not yet have an accountant, Nexbal’s partners provide bookkeeping, VAT and year-end services; see accounting help. For changing system at the same time, see how to switch accounting system.