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What is Bookkeeping?

Posted 28 May 16

 

One of the aims we set ourselves at Tawanda Accountants is to make the process of accounting and bookkeeping as simple as possible. We want to make sure our clients never have to worry about keeping track of their accounts and dedicate all the time and energy in growing and developing their business.


We believe that one of our greatest strengths lies in a clear, friendly and professional communication between us and our clients. With this in mind, we’ve created a comprehensive guide to the basics of bookkeeping.

Bookkeeping is a process of recording, analysing and interpreting the financial transactions made by a business or individual. A professional and experienced bookkeeper will be able to analyse and produce financial records which will give business accurate and useful information about its financial activity. These records are crucial in planning a successful future of any business. Furthermore, keeping your records safe, organised and up-to-date is required by HMRC. If you are unable to provide the evidence for your business transactions, you will not be able to benefit from tax deductions your company might be entitled to.

Although keeping your records organised is not difficult, you should prioritise this task in order to avoid any missed documents, receipts and evidence you might need to provide at the end of your tax year.

The main responsibilities of a bookkeeper involve:

recording financial transactions
posting debits and credits
producing invoices
maintaining and balancing subsidiaries, general ledgers, and historical accounts
completing payroll


Maintaining a general ledger is one of the main and most important responsibilities of a bookkeeper. The general ledger is a basic document used to keep track of a company’s accounting records. It includes a complete record of financial transactions over the life of a company.


Accounts that are usually included in the general ledger are:

current assets and fixed assets
liabilities
revenues
expenses
gains and losses


It is crucial to understand the difference between the roles of the bookkeeper and the accountant. For a business director seeking a financial advisor, knowing the difference between the two allows them to understand the kinds of credentials they are looking for in potential advisors, as well as, to determine how and when to use each.

In the majority of cases, the bookkeeper is required to have between two and four years of experience or an associate’s degree. A successful bookkeeper need to be accurate, knowledgeable of HMRC regulations and understand key financial topics. Usually, the bookkeeper’s work is overseen by either an accountant or the small business owners whose books they are doing.

At Tawanda Accountants we provide our clients with a compact help in both bookkeeping and accounting, so they never have to worry about sending their documents to the wrong hands. Our accountants are highly qualified and experienced in all business fields. Depending on the size of your business, we will determine what type of help your company can benefit from the most. If you want to find out how we can help you grow your business, contact us today at Tawanda Accountants.