Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting.The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. The Finsbury Park Business Forum can assist members ‘free of charge’ with their Book Keeping. This role will include; day to day financial functions, sales ledger, purchase ledger, credit control, VAT fillings, and ad hoc administrative duties.
If you run your own business, no matter what size, bookkeeping is a legal requirement by H M Revenue and Customs.
Basic records you must keep
Your basic records will include:
These records can be used by yourself or your accountant to create a profit and loss account. This will show the sales income received and expenses paid. Your tax liability will be based on this. Other records you must keep
Each business is unique and may require a specific type of detailed record to be kept. Some examples include:
If accurate and complete records are not kept up to date you may end up paying more tax than necessary. This may be due to a lack of evidence of tax deductible expenditure or/and inaccurate sales records causing H M Revenue and Customs to assess your expected sales .
If you pay an accountant to prepare your accounts they will charge you based on how long it will take them. If your records are more accurate this will reduce the time taken and therefore reduce the amount they charge. The above reasons are sufficient to ensure you keep up to date accounts and records to ensure you have control over your business, assess its profitability and cash flow situation.
Let us discuss how we can help your organization.
Call: +44 (0) 207 527 0011
FinSpace - 225-229 Seven Sisters Road,
London N4 2DA United Kingdom
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