In short, we’ll help you to set up and manage whatever system of bookkeeping you require. If you want to use a traditional ledger and give it to us at the end of the tax year, that’s fine. Equally, we can show you how to integrate cloud accounting systems and off-site data entry seamlessly into your existing operation. You can even outsource your bookkeeping directly to us for a fraction of the cost of employing someone in-house; and with this option you’ll have access to our expertise and resources, resulting in a dramatic improvement in your data quality.
All our bookkeeping solutions are designed to give you insight, control and easy access to your accounts whenever you need it. We charge a fixed annual fee so you can anticipate your costs without any hidden surprises.
Good bookkeeping is an essential part of a profitable company, not just because it makes things easier at the end of the month or tax year, but also because it provides you with real-time information about how your company is doing. Good bookkeeping is the foundation of management accountancy. Without high-quality data, none of the graphs, projections and forecasts produced by your accountant have much meaning. Many companies employ a bookkeeper or manager to maintain these records, but this can be expensive.
Bookkeeping systems usually fall into one of two categories:
Single-Entry Bookkeeping System
Single entry systems are suitable for very small businesses and are often considered inadequate for any other business type. The information recorded is usually limited to Cash, Receipts, Payments and Taxes; with assets, revenues and expenses left out.
This type of information gathering is suitable for the production of an income report (such as the one that must be submitted in your tax return) but is usually inadequate for management accounting. This means that if you currently use a single entry system but want more information about how your business is performing, you may need to switch to gathering more detailed information about your transactions.
The main advantage of a single entry system is its simplicity. They are cheap and easy to implement. On the downside, however, these systems are not self-balancing. Errors can frequently creep in where items are left out or added, or where theft occurs. An additional reconciliation step in which transactions are verified with bank records is required with single entry systems for this reason.
Double-Entry Bookkeeping System
A double-entry system requires that for every transaction, entries are made in two separate ledgers. The process is based on the ‘accountancy equation’: Assets = Liabilities + Equity. Debits and Credits are recorded in relation to their effects on these accounts: debits cause an increase in the balance of an asset account and a decrease in the balance of a liability account, revenue account or capital account. Conversely, credits cause an increase in the balance of a revenue account, liability account or capital account, and a decrease in the balance of an asset or expense account. By ensuring that the total of these accounts all continue to conform to the basic equation, errors can be identified and eliminated.
A double-entry system is complex and usually needs to be maintained by a qualified individual, which is often seen as expensive. On the plus side, a double-entry system reduces and identifies errors and provides rich, high-quality information that can be essential for the effective running of even a relatively small business.
However you conduct your bookkeeping, there are various systems that might provide you with the ease and flexibility you need:
Ledgers can be used as the sole repository for financial information in a single-entry bookkeeping system. In many small businesses, it is a large book in which information about income and expenditure is recorded. In a more technical sense, a ‘general’ or ‘nominal’ ledger (often electronic) is a central repository for information gathered from various other accounts (projects, cash management, fixed assets, for example) in which the accounts are ‘trial balanced’ to ensure that the credit and debit accounts match up.
A spreadsheet is another useful way of recording information for a single-entry bookkeeping system and has the advantage over a paper ledger in that it can be easily shared over the internet. It may form part of a double-entry system too, by providing information for a specific account.
Data Entry Company
There are a number of online companies offering bookkeeping solutions that allow you to scan and email receipts to them, which they will use to compile books on your behalf. This is a quick and easy way of recording income and expenditure and feeds easily into cloud-based accountancy software.
Cloud Accounting Application
Products like Xero, Freeagent and Wave are now intrinsic to many modern businesses because they provide instant access to your accounts on the go. In conjunction with an effective data-entry system, they can be extremely powerful and easy to use.
As specialists in the field, accountants have access to powerful software that can handle and analyse large volumes of complex data to produce simple reports that have real meaning. Using a traditional accountant to handle your books, however, usually requires you to have an effective information gathering system in place.
Communications with HMRC & Companies House
Self Assessment Tax Return
CT600 (Company Tax Return)
Monthly Management Accounts
Accounting Systems Set-up
Business Startup – Company Formation
Benchmarking and KPI’s
Virtual / Part-Time Financial Director / CFO
Non-Executive Director (NXD/ NED)
Disaster Recovery Systems
Monthly / Quarterly / Annual Performance Meetings