The Basics of Bookkeeping: What You Need to Know

At Auditox Accountancy, we provide an extensive range of bookkeeping services for companies in many industries and sectors. We support self-employed professionals, sole traders, small businesses and large companies. Every time a customer makes a payment, a client pays an invoice or you pay a supplier, this information needs to be tracked and recorded. When money changes hands, make a note of this and keep the documentation.

• If you fall below the £85,000 threshold, it may be beneficial for you to voluntarily register.
• The best accounting apps have features that make keeping up with the details easy, such as saving photos of receipts, so you don’t have to keep paper copies.
• Also, firms can record longer-term liabilities with this method.
• You don’t need a lot of accounting knowledge to use the cash-basis approach.
• Once you’re registered for VAT, you must charge the applicable tax rate on any products or services you sell.
• Accurately report your financial transactions to the government and pay taxes.

We are a company who is best known for offering awarding body accredited courses for anyone who wishes to take their professional life to the next level. Create your own personalised account with curated reading lists and checklists. Payroll processing – timesheets, salary calculations, payslips, submissions to HMRC. Keep them safely and securely for your own records as well, in case you have a disagreement with a client or a customer.

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Auditox Accountancy provides specialist bookkeeping and accounting service, and we are keen to hear from you. Call us or complete a simple online registration form, and we will help you. Having a dedicated accountant is appealing, but the cost of tailored small business accounting services might be prohibitive. Many qualified accountants offer great value for money, but the cost of hiring a dedicated accountant can still be expensive. Auditox Accounting offers an extensive range of services for small businesses, including specialist accountancy and bookkeeping services.

• There are several different types of cash book available and include a simple single-entry book and a double-entry.
• While some small businesses will use sub-categories to delve deeper into these elements in greater detail, an overview is sufficient for many companies.
• These articles and related content is not a substitute for the guidance of a lawyer , tax, or compliance professional.
• Our guide explains the accounts jargon that might trip you up, and includes advice on how to get your bookkeeping right.
• The more information you have to complete your books, the more accurate they are likely to be.

There are professional associations that can provide bookkeeping training and certification. Evidence of financial record keeping has been found in Mesopotamia, Babylon, Sumer and Assyria as far back as 7000 BC. Archives have been discovered, showing the recording of accounts from farm produce in ancient Greece as well as from the Roman https://www.icsid.org/business/managing-cash-flow-in-construction-tips-from-accounting-professionals/ Empire. Includes fixed asset accounting, software, tracking, and how to value fixed assets. There are several different categories of assets, including computers, fixtures and fittings, buildings and equipment. If you are VAT registered, your business will need to provide sales and purchase history when the VAT return needs completing.

Why choose our accountancy services?

Please do not copy, reproduce, modify, distribute or disburse without express consent from Sage. These articles and related content is provided as a general guidance for informational purposes only. Accordingly, Sage does not provide advice per the information included. These articles and related content is not a substitute for the guidance of a lawyer , tax, or compliance professional. When in doubt, please consult your lawyer tax, or compliance professional for counsel. This article and related content is provided on an” as is” basis.

Only make purchases that are essential to grow or maintain your business. When it comes to preserving cash flow, think lean and mean. First, you need to make sure you have more money coming in than going out.

Getting Started

Otherwise you’ll be paying your bookkeeper for the time taken chasing down and sorting these documents, when it’s easy to do yourself. Worse, if documents go missing, then you could end up facing a fine for late filing. In the single-entry bookkeeping system, the financial record of every transaction is recorded once in the journal, transaction log or a cash register. While in a double-entry bookkeeping system certain cash flow from a customer will result in two different entries.

To help you understand bookkeeping basics, we have produced lots of bookkeeping examples. The examples include posting the double entry to sales, purchases, equity, depreciation, prepayments and accruals. Accounting software is a complete double entry bookkeeping system and will work for all businesses, construction bookkeeping from the small self-employed to the large companies. Our advice is to look at the business requirements; it might include stock, fixed assets, sales, purchases, etc. Accountancy services include preparing limited company accounts, filing corporation tax returns and calculating Capital Gains Tax.

Manage foreign currency transactions if required

Depending on the support you require, there will be tasks you need help from qualified accountants or an accountancy firm. These include processing purchase invoices, processing expenses claims, issuing sales invoices and reconnecting with customers regarding due payments. It is best https://www.scoopbyte.com/the-role-of-real-estate-bookkeeping-services-in-customers-finances/ to swap online accounting software for professional services for complete confidence. When you have an expert undertaking accountancy services, you will feel relaxed and ready for anything. Of course, there are limitations with bookkeeping software and online accounting software.

Lastly, remember to ask what your options are in case of troubleshooting or if you need support. If you wonder where you can learn bookkeeping, there are plenty of courses, both online and through various agencies. If you are VAT-registered, you need to complete VAT returns and payments on a quarterly basis. From these you will be able to prepare your annual accounts which is a legal requirement for all limited companies. Your bookkeeping obligations vary according to the business set up you have chosen. Alternatively, several courses are available – from bookkeeping for beginners, A-level Accounting or the more advanced accounting qualifications such as ACCA or CIMA.

Records must be accurate, complete, and accessible – storing them digitally using software will help you to achieve this. Knowing and understanding what your business’s income is and where it comes from allows you to determine what you have in the bank to spend. Examples of liabilities include notes or loans payable, accounts payable, salaries and wages payable, and interest payable. Examples of assets are cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings and equipment.