Guides
Bookkeeping is the practice of recording and tracking the financial transactions of a business i.e. traditionally refers to the day-to-day upkeep of a business’s financial records.
Bookkeepers regularly summarise this activity into reports that show how the business is doing.
1. Legal Requirements – With a limited company, the company director(s) are legally and personally responsible for ensuring
that annual statutory financial statements (or accounts) are prepared,
2. VAT – ‘Making Tax Digital (MTD)’ regime has been recently introduced and will become more important over
the coming years. It will be increasingly important as it will be m,ore real time i.e missing invoices or
errors will be more clear to HMRC, as well submit your quarterly VAT returns to HMRC by the relevant
deadline(s), thereby avoiding any unnecessary default periods, late filing penalties or interest.
3. Customer Relationships – As part of managing your cashflow and ensuring that there is some element of credit control in place,
it is important that you clearly understand what has been invoiced to your Customers AND what is yet
to be paid (or part paid).
4. Supplier Relationships – You need to understand what is due to be paid to your suppliers and when it requires to be paid. Also
ensuring that you obtain invoices from Suppliers against any or all payment made to Suppliers as this
will ensure that you are able to claim the right amount of VAT on your VAT returns
5. Key Figures – Identifies financial and other risks facing growing business at an early stage, allowing them to be
managed or mitigated ahead of time
If you have a growing business and may require funding within the next 12 months, now is the time to
consider your requirements and also to understand your options.
