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Bookkeeping and Financial Records

How we can help with your bookkeeping?

We provide book keeping services using Xero and Sage Line 50. If you have a small number of transactions we can do the book keeping required to prepare your accounts using Excel. Just give us your financial records (invoices, bank statements etc.) and let us do the rest.

To keep your costs down we can supply you with an Excel  spreadsheet, tailored to your own business so that you can keep your own records. Doing this really isn’t that difficult and it can really cut your costs. We will show you how to enter your transactions into your spreadsheet and check it after a few months to make sure you’re on the right track.

If you need a dedicated bookkeeper or haven’t chosen which package to use we can help by:

  • Providing advice on different computerised book keeping packages.
  • Providing training and support in certain bookkeeping packages (Sage Line 50 and Xero).
  • Helping you find a bookkeeper if you don’t already have one.

If you would like a free no obligation meeting to discuss your bookkeeping requirements just get in touch

What is Bookkeeping?

Bookkeeping involves entering all of your financial transactions into a manual or computerised bookkeeping system. Bookkeepers need access to your financial records such as bank statements, purchase invoices and credit card statements. They also generate financial records such as sales invoices.

Bookkeepers can also perform a variety of other tasks such as chasing payment from customers, paying suppliers and entering other types of financial data such as the monthly payroll figures.

Efficient, accurate bookkeeping depends upon the availability of well organised financial records or paperwork. It’s much easier to enter all the purchases for a month and record which have been paid if you are given a folder that contains all the invoices purchases for the month and a complete set of bank statements and credit card statements.

A well-maintained bookkeeping system will allow you to see aspects of how your business is performing – for example the total sales in a period or the amount of money owed by customers.

A bookkeeping system forms the basis for the preparation of management accounts that will give you a clear and comprehensive picture of how your business is performing. You can read about our management accounts service here.

You may decide that you want to do your own book keeping or you may employ the services of a professional bookkeeper.

Keeping financial records / paperwork

From the moment you consider running your own business you must keep track of all financial transactions affecting your business. This starts with organising your paperwork and keeping records, whether you are doing the book-keeping yourself or giving your records to a book keeper or an accountant.

When you start a business, you need to make keeping your paper work in order a priority. The same applies if you don’t have a business but need to complete a tax return – you will still need all the relevant paper work to hand.

What records to keep – Trades

In general, you will need to keep records of:

  • Sales and income
  • Business expenses
  • VAT records if you’re registered for VAT
  • PAYE records if you employ people
  • Records about your personal income

Keeping records involves keeping proof, usually as paper records. Types of proof depend on the type of business but might include:

  • Sales invoices
  • Invoices and receipts
  • Electronic sales records or till rolls
  • Mileage records
  • Bank statements
  • Cheque book stubs and paying in slips
  • Payroll records (if you have employees)
  • Hire purchase records
  • An inventory of stock on hand

What records to keep – Companies

Companies will need to keep records of all their trading transactions and:

  • Minutes of directors’ meetings
  • Copies of resolutions
  • Details of any transactions with directors
  • Copies of stock transfer forms

What records to keep – Letting businesses

  • Monthly Letting agent statements
  • Summary of your rental income and expenses
  • Mileage records
  • Bank statements
  • Letting agreements
  • Letting agreement statements

Rental businesses will also need to ensure that they keep all records relevant to the purchase and sale of the properties thy let and the details of any capital improvements. If the property is sold these will be needed to calculate Capital Gains Tax.

What records to keep – Personal tax

The records you need to keep for a personal tax return depend on your personal circumstances – so the following list is not exhaustive:

  • P60’s and P45’s showing your employment (or pension income)
  • P11d’s showing any taxable benefits from your employment
  • Savings Income – a summary of interest received and copies of interest statements
  • Dividend Income – dividend vouchers & statements
  • Social Security Benefits – A letter from the DWP showing the amount of your state pension or other taxable benefits. For Jobseeker’s Allowance, there should be a form P60
  • Capital Gains – Contract notes for the sale and purchase of assets such as shares or antiques. Completion statements and details of selling / buying expenses for properties. Details of the period of occupation and letting, for houses that have at some stage been your main private residence but have also been rented out to tenants.

For a free no obligation meeting to discuss your bookkeeping requirements just get in touch