What is Bookkeeping?

 

Bookkeeping is the recording of all the financial transactions taking place in a business, on a day to day basis.

 

Bookkeeping enables a business owner to have an understanding of income and expenditure, as it is the first step of data entry in the accounting system.

 

The following are part of standard bookkeeping activities:

• Recording sales and purchase invoices

• Recording bank transactions and reconcile them

• Balancing accounts on a day to day basis

• Maintaining and balancing ledgers

• Recording assets

 

Based on the information processed in bookkeeping, the VAT reports and Annual Accounts are produced. It is therefore crucial that bookkeeping is done accurately and in accordance with the accounting framework.

 

Double entry bookkeeping

The double entry system is widely used to record financial information where every transaction impacts two accounts, resulting in a debit and credit. This way, it is not just the income and expenditure which you are recording, but also assets, liabilities, debtors, creditors, etc.

As physical books are not used anymore, you would need an accounting software which accommodates the double entry system.

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What can Priority Point do for you?

• We take the hassle away from you and record every invoice, receipt, purchase or acquisition your business makes

• We have been doing this for years and have extensive knowledge in how and what to process, what expenses are allowed for business purposes and what HMRC disallows

• We process the documents with in depth attention to detail to ensure high accuracy of your financial reports

• We use an accounting software with the double entry system to record all transactions and therefore we can provide the stakeholders with reports on the financial situation of the business at any time

• Our broad expertise in bookkeeping ensures accurate VAT reports and accurate Annual Accounts 

• We educate our clients on what type of expenses are allowable and how to keep their records, should HMRC open an investigation

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Get in touch with us and tell us what problems you are facing with your bookkeeping. We're good at solving them.

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