Bookkeeping for Your Business

Missed Self-Assessment Filing Deadline?
February 8, 2015

Bookkeeping for Your Business

What is Bookkeeping?

Bookkeeping is the process of formally recording day to day financial transactions in your business.

Why is Bookkeeping Important?

  • Your financial records show how healthy your business is;
  • There are some financial records you are obliged by law to keep and report on. You are expected to keep these for six years.
  • You may have heard of accountancy terms like balance sheets, profit & loss, accounts payable and receivable – they are all components and functions of bookkeeping. Bookkeeping is a foundation for these reports.

 

What does a Bookkeeper do?

The main objective of the Bookkeeper is to keep accurate records.

  • Recording the day to day transactions and allocating them to the right ledgers- i.e. sales or purchases
  • Reconciling the petty cash
  • Record all sales income and purchase payments
  • Reconciling customer payments with invoice payments to suppliers using supplier receipts and statements.
  • Reconciling bank statements with the cashbook.
  • Record capital expenditure
  • Preparing monthly accounts: charging depreciation, and including prepayments and accruals in the accounts.

A Bookkeeper could also do the following:

Process the monthly payroll for employees and submit RTI to HMRC

Make the monthly HMRC PAYE/NI payments

Prepare and submit quarterly VAT returns

Generate/Prepare reports such as aged debtors and aged creditors report

Preparing year end accounts/reports/paperwork for auditor

Finalise payroll year end and submit to HMRC

If you need a bookkeeping, VAT, payroll, or management report services, we in Bookkeeping & Payroll Aid Ltd are available to help you. Our aim is to enable you fulfil your statutory obligations and enable you make your business better, at a fee you can afford.

We are also available to complete Self -assessment tax returns for the self-employed as well.

 Book keeping in your Business – Your Personal Guide

As you commence on your business, your major priority is to run the business. If care is not taken, you may realise after some time that receipts are lost, and you have no documents to prove the business expense.

REMEMBER: If you have an expense without a receipt, it may be disallowed by the taxman.

What you need to do to keep your bookkeeper, your accountant and the tax office happy:

As a starting point:

  • Buy a few stationery for your documents
  1. Lever arch file
  2. A hole puncher
  3. A set of dividers
  4. A stapler and staple pins
  5. A ream of paper
  • Now start filing
  1. Label 12 of the dividers, one for each month
  2. For each month, file the business bank statements at the front.

Behind these, file copies of invoices you have sent and then your bills.

After the bills, file loose receipts. Staple the receipts to a blank piece of paper chronologically. Hole punch this sheet of paper and file it (Use more sheets of paper if required).

  • Prepare a spreadsheet while your business is still small. It is a great place to start from.

Adhering to the three steps above, makes it easier to prepare accounts and statutory returns for your business.

Additional advice:

-Have a separate bank account for your business.

Collect receipts for every business expense.

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