This is the recording of sales, purchases, receipts and payments to their appropriate categories, with the aim of producing a Trial balance.

Each individual category will either total up to a debit or credit balance (or if you prefer, a positive or a negative balance).

The sum of debits should equal the sum of credits, and this end result is the trial balance. Bookkeeping can be performed by the client, a bookkeeper or an accountant. It is at this point, that normally, the accountant takes that summarized information with a view to preparing a set of accounts.

The view of H.M. Revenue & Customs (HMRC): “You must also keep records for business income and outgoings if you’re self employed”. HMRC goes on to state that you’ll need to keep records of:

  • All sales and income
  • All business expenses
  • VAT records if you’re registered for VAT
  • PAYE records if you employ people
  • Records about your personal income

You should keep proof which includes,

  • Receipts
  • Purchase invoices
  • Bank statements
  • Sales invoices

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We will take the strain out of bookkeeping, and ensure that your transactions are coded to the correct place, allowing you time to grow your business.

If in doubt, talk to us.

Tax Local Accountants – for your small business needs – 01279 216 000.