If you are a beginner to Bookkeeping, then this information will help get you started. There are so many reasons why bookkeeping could be useful to you including running a small business, charity accounts or personal accounts.
Depending on the size of the project you are working on will depend on how you complete your records, there are several different choices:
Excel templates - can be a good start to get you up and running. We have some free Excel templates including a cash book and budget template. These are suitable for personal or a small business.
Accounting book - If you are just keeping track of simple accounting then a book may be the answer. It will include columns for listing detail and analysis of income and expenditure. An analysis book is a manual way of completing the records.
Accounts software - There are lots of different software available, most now are all online, so there is no upfront fee. They range from Wave which is free to QuickBooks, Sage and Xero; all have a monthly fee. The advantage of software is it will grow with your business, but you may need help in getting started.
I would suggest getting you started to speak to a bookkeeper or accountant; they will be able to recommend the best set up to record all your information. If you can complete the bookkeeping yourself, it may be that you just require their services at year end to ensure the records are correct to submit to either Companies House or HMRC.
You may want to use the services of a bookkeeper on a regular basis; this will leave you more time to run your business knowing that the accounts are in safe hands.
You will need to keep records of all your transactions from sales invoices and purchase receipts to expenses. Lots of payments are online, so it is worth printing off receipts as you spend money.
Depending on the amount of paperwork depends on the filing system needed. If there are only a few records, then a folder or you may need a lever arch file to keep the sales and purchase separately. You will need a filing system which can either be month by month are alphabetical by supplier and customer.How often should I complete Accounts? How often you complete the accounting records depends on the size of the information you are recording. A large business will need information on a daily basis and will have a team to do the work. A small business may only have a few records and just needs to get the figures for the year end. Most require the information on a weekly or monthly basis.
Accounts each year will have to be submitted to either Companies House for Limited Companies, or HMRC if you are self-employed.
A single entry system is a simple record of all your income and expenses shown in a book or spreadsheet.
Double entry is more complicated and records transactions twice in the system. A couple of examples are that you purchase some stationery, the transactions will post to both the expenses and bank balance. Double entry will produce both a Profit and Loss account and Balance sheet, which most businesses will need.
Lots more information can be found on this site to help get you started, take a look at our bookkeeping basics for further details.
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