Bookkeeping Services

What is Bookkeeping

Bookkeeping is the process of recording, organizing, and maintaining a company's financial transactions and records. It is a fundamental aspect of accounting and plays a crucial role in keeping a business's financial affairs in order. Proper bookkeeping is essential for complying with tax regulations, preparing financial statements, and making informed business decisions.

Why Choose Us

• All of our Bookkeepers are AAT qualified, which guarantees a high level of expertise and professionalism.
• We have experience working with start-ups through to large limited companies, and address each with equal importance.

Our bookkeeping services for limited companies, sole traders and partnerships are comprehensive and client-focused.

More information on Bookkeeping

Bookkeeping is the process of recording, organizing, and maintaining a company's financial transactions and records. It is a fundamental aspect of accounting and plays a crucial role in keeping a business's financial affairs in order. Proper bookkeeping is essential for complying with tax regulations, preparing financial statements, and making informed business decisions. Here are some key points about bookkeeping:

• Recording Transactions: Bookkeepers are responsible for recording all financial transactions, including sales, purchases, expenses, and payments. These transactions must be accurately and systematically recorded.
• Double-Entry Bookkeeping: Double-entry bookkeeping, is where every transaction affects at least two accounts, i.e. a debit and a credit. This system helps maintain the balance between assets, liabilities, equity, income, and expenses.
• Chart of Accounts: The chart of accounts is a structured list of all the accounts used to record transactions. It typically includes categories such as cash, accounts receivable, accounts payable, inventory, sales, and various expense accounts.
• Bank Reconciliation: Bookkeepers must regularly reconcile the company's bank accounts with the recorded transactions to ensure accuracy and identify any discrepancies.
• VAT Records: For businesses registered for VAT (Value Added Tax), bookkeeping involves recording all VAT-related transactions, including sales, purchases, and VAT payments.
• Payroll Records: If the business has employees, bookkeepers will maintain payroll records, including salary payments, tax deductions, National Insurance contributions, and pension contributions.
• Financial Reporting: Bookkeeping provides the data necessary to prepare financial statements, such as the profit and loss statement (income statement), balance sheet, and cash flow statement.
• Compliance: Accurate bookkeeping is crucial for fulfilling tax obligations and complying with regulations set by HM Revenue & Customs (HMRC) and Companies House.
• Software and Technology: Many businesses in the UK use accounting software to streamline their bookkeeping processes. Popular accounting software includes QuickBooks, Xero, and Sage, among others.
• Year-End Accounts: At the end of the financial year, bookkeepers provide the necessary data to accountants for preparing year-end accounts and tax returns.
• Audits and Inspections: In case of audits or inspections by tax authorities or regulatory bodies, comprehensive and well-maintained bookkeeping records are crucial for demonstrating compliance.
• Data Security and GDPR: Bookkeepers must adhere to data protection regulations, including the General Data Protection Regulation (GDPR), to ensure the security and privacy of financial data.

It's important to note that while bookkeepers handle the day-to-day financial recording and organization, accountants are responsible for interpreting the data, preparing financial reports, and providing financial advice.

For many businesses, outsourcing bookkeeping tasks to experienced professionals or using specialized accounting software can help maintain accurate records and stay on top of their financial obligations efficiently.