Core Bookkeeping

What is bookkeeping?

Bookkeeping is the process of recording your income, expenditure and receipts and payments in its simplest form. You can view how we do this here and what systems we use to ensure that this process is as efficient as possible…

Link to software run through

 

Why is bookkeeping important?

Bookkeeping is the foundation element to a strong business. It is your fundamental core records for reporting results and making business decisions based on those results.

Without up-to-date bookkeeping, you can lose track of customer records and hence fail to chase in debts you are owed.

If you’re basic bookkeeping is incorrect, the implications will be widespread. Meaning your business will have little scope for the future and you may have debts or taxes that have been missed, this can be damaging not only financially but also in terms of reputation with clients and HMRC.

 

Can I do my own bookkeeping?

Yes, you can. However, you know your business better than anyone and will understand that your time can be put to better use. Experienced bookkeepers are fast, accurate and can be very cost effective.

 

How does bookkeeping differ from management accounts

Bookkeeping is the recording of the initial raw accounting data. Good bookkeeping is the essential starting point in the production of management accounts but not the end of it.
When the bookkeeping work is done, the management accounts production and analysis of the numbers begins.

Management accounts take bookkeeping to the next level, quantifying raw data and interpreting these figures to give businesses a clear and accurate statement of affairs.

Whilst bookkeeping is your core entries of day-to-day activities, it does not consider issues such as timing of services, variations in stockholdings, depreciation of assets and many more issues that ultimately affect your bottom-line profit. That’s where management accounting steps in with adjustments to reflect the true performance of your business.

 

Why choose us?

We have an array of experience working with general bookkeeping for companies of all sizes, we can offer rapid responses to any issues that may arise, and we will set up a communication network with your team, freeing up your time and resources. Our highly skilled team will look intricately at every aspect of your books to ensure nothing is missed.

 

To see how we can help you build better business, contact our team here to receive a free quote on a full package price.

To see what our clients think about this and other VFO services, see our testimonials here.

 

Our VFO is made up of:

 

Q&A

Why do I have to do bookkeeping?

As a business owner you need to know how the business is performing. That starts with bookkeeping. Without bookkeeping it’s also much harder to ensure you have chased in all your debtors and paid your suppliers as they fall due.

It’s also a Companies Act requirement for Directors to keep financial and accounting records including details of assets, debts, stock, etc.

Why can’t I keep paper records?

You can! However due to the Making Tax Digital regime you will also have to keep electronic records anyway.

If I don’t do bookkeeping what are the consequences?

Not keeping your bookkeeping up to date is a potential breach of the Companies Act which can lead to fines or worse.

Section 386 of the Companies Act 2006 prescribes the ‘duty to keep accounting records’ which are ‘adequate’ and ‘sufficient’ to “show and explain the company’s transactions” and to “disclose with reasonable accuracy, at any time, the financial position of the company at that time”.

The section goes on to specify that the accounting record must contain “entries from day to day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place”.

As well as the companies act, there is also the more immediate issue of chasing your own debts and cashflow. If your bank reconciliations are not up to date then neither is your debtors ledger. You risk losing track of aging debts, or even chasing debts that have already been paid to you which can in turn upset customers.

How does bookkeeping interact with Making Tax Digital (MTD)

Under the MTD regime businesses are required to submit quarterly data to HMRC, although the details of this are not fully known, this is likely to resemble a profit and loss report. The basic entries behind that data submitted to HMRC will be your bookkeeping entries.

Can you do my bookkeeping for me?

Yes we can! All we need to do is collect your info from you and we’ll do the rest.

What are the advantages of outsourced bookkeeping?

Saleable, reliability, continuity of service, timeliness, no Er’s NIC or Pension contributions, review processes otherwise not available in house, no holiday cover issues, no maternity/paternity cover to name just a few!

What bookkeeping software should I use?

There are dozens of bookkeeping software options with many different features. We prefer “cloud” based bookkeeping software which can be accessed via your web browser such as Xero or QuickBooks Online. Cloud bases systems have the advantage of being accessed from anywhere and can have many integrations with other business software. Contact us to talk through the specifics of your business to help find bookkeeping software that suits your specific business needs.

Phone

CALL US 01325 349700

Lines open 8.30am-5.00pm Mon-Fri


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