Bookkeeping

Bookkeeping is the recording of all financial transactions in a business.

Bookkeeping

What does bookkeeping consist of?

Bookkeeping is the recording of all financial transactions in a business. This used to be produced using a physical ledger and was very time consuming.

However with the introduction of Accounting software, the process has been simplified reducing the time it takes to prepare the bookkeeping and allowing firms like ours to offer lower fees to clients.

As less time is spent on inputting transactions, firms like ours, are able to analyse these transactions in more detail to identify which can be used for tax allowances and reliefs.

The additional benefits of using software is that many reports such as the VAT returns, the profit and loss account etc. can be populated within a few clicks and the information available can help steer critical business decisions.

You must keep accounting records that include all money received and spent by the company, as well as all assets and liabilities of the company.

HMRC can fine a company up to £3,000 if you do not keep sufficient accounting records. In more serious cases, you can be disqualified as a company director.

Do I need to use accounting software for my bookkeeping?

No, but it is highly recommended due to the time you will save. The reports that come from accounting software helps to make meaningful business decision and can significantly contribute to the growth of your business.

Why do I need to update my bookkeeping regularly?

The closer you are to when the transaction takes place, the more likely you will remember what it was for. We have many clients who just cant remember why certain transactions took place because they have left it very late which consumes a lot of time contacting suppliers.

How do I manage my receipts and invoices?

Avoid bunching all your receipts together in a box. Organise receipts by expenditure and dates. If possible give each receipt a unique number and when recording the transaction in your accounting software enter that same number as a reference. In that way, you will always have an audit trail for your transactions.

Alternatively you can take pictures of your receipts as and when you receive them and upload them to cloud software such as Receipt Bank, which will organise your receipts for you by supplier and dates.

Receipt Bank can also integrate with your accounting software to be able to attach a copy of every receipt to your bank transactions, giving you a complete online system to manage your accounting records.

Tax Return Due Soon?

We can file returns within 5 working days.
Call us on 020 7515 5883 to discuss

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