Your day-to-day record keeping of transactions and invoicing. Reconciling and organising from your bank to mileage and expense claim forms. Also Reconciling your accounts monthly from your current and business deposit accounts to your stripe and paypal accounts.
It is Crucial to have an efficient bookkeeping system in place in order to get accurate data and resulting tax compliance. Many efficient bookkeeping systems businesses have in place are now digital and recorded within software provided by company’s like Xero and Sage. It has now become more relevant and necessary than ever to record bookkeeping digitally with the introduction of Making Tax Digital (MTD). Where HMRC is digitalising the Tax system and wanting to digitally link transactions right back to the core and first introduction of a relevant piece of data entry, being a sales invoice or bank transaction for example.
Basic bookkeeping essentially involves the following:
· business transactions, the banking system and double entry
· payroll and ledger accounts
· reconciliation and preparing the trial balance.
Many other aspects must also be taken into account including the following, VAT implications involving sales and purchases tax, Sales and purchase returns, dealing with invoices and credit notes, Banking including cash, direct debits, Bacs and less commonly used now cheques to name a few, dealing with the cash book – all be it digitally now, irrecoverable debts, any journals which may need including and also the introduction and interaction with Payroll.