So you need bookkeeping for your business and aren’t sure what it entails?
Rather than take a blind stab in the dark and hope for the best, find out right here with the accounting experts what bookkeeping really provides for your business and never look back!
Step One – Invoice Recording
The first step in bookkeeping is organisation, especially with your invoices. Whenever your business makes a purchase, a sale, a credit purchase or receives any documentation from a customer, you need to make a clear record of the action for your bookkeeper.
Our accountants start by raising the sales invoices and recording them in both the sales and debts accounts for your customers. All invoices should have reference numbers so that you can refer to them later on if needs be and to also put them in an order. These are often known as the source documents which is the very first step in bookkeeping practice.
Step Two – Payments and Receipts
As experienced accountants working with client accounts for many years, the next steps we take is to record all customer receipts. Recording both the bank receipt and the clearing of the debt we are able to finalise payments and make notes of this on your accounts.
The difference between an invoice and a receipt is that an invoice is the bill and the receipt is the closing of the bill in payment form. Once the invoice has been created, the next formal documentation to follow is naturally the receipt as the receiver of the invoice will (hopefully) pay it.
Step Three – Update the Accounts
Once the payments have been recorded and ordered it is time to update the banking accountings. Sifting through the bank receipts and payments, we are able to correspond the two documents together, also known as bank reconciliation.
The act of bank reconciliation is matching the accounts of the banking records to your bookkeeping records. “A bank reconciliation is a process performed by a company to ensure that the company’s records are correct and that the bank’s records are also correct”, Accounting Coach.
Step Four – Check Remaining Customers for Debts
The next step our accountants take is to check all other existing customers for any overdue payments and issue them with payment requests, receipts and invoices. We also do this with suppliers who may owe your business money and chase these payments so that your accounts are accurate and up to date.
Not only does this help with bookkeeping best practice, but it also helps with cash flow forecasting and the ability to know where your accounts and finances are actually at.
Step Five – Review Stage
Coleman and Co are experts in reviewing profits and losses within bookkeeping practices and order your balance sheets accordingly. On the lookout for errors, missed payments and overdue expenses, we are able to make sure you can clearly see your business accounts without the jargon.
We also look at certain periods of time and perform end-of-period procedures. Getting your accounts ready for financial statements and tax returns is our priority, with the majority of our work being carried out in quarterly periods.
Step Six – VAT
Completing VAT returns where applicable also comes into play with bookkeeping. Whether we use electronic systems or not, VAT returns are always submitted on time, accurately and specific to your business.
Starting with a bookkeeping review rather than taking information directly from your accounts, we are able to create credible tax returns that are void if inaccuracies. With various HMRC legislation to meet regarding VAT returns and VAT invoices, it really pays to work with the professionals.
Get in Touch
Find out more about bookkeeping and your business personally by calling us on 028 9266 3599. With expert assistance on hand at all times, it’s a no-brainer to deal with professional bookkeepers at every chance you get in Lisburn.