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,
- Purchase invoices
- Bank statements
- Sales invoices
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.