#Starting a bookkeeping business manual

The reality is you do not need any qualifications to be a bookkeeper.

These are the bookkeeping basics every business owner must produce each year for tax purposes and to satisfy HMRC. The tax and other non-cash related items such as depreciation get calculated when the accounts are drawn up. The statements produced include a Profit and Loss Account a Balance Sheet and cash flow forecast. The data from these books or ledgers creates the foundation for the annual accounts for tax and company accounting purposes. Asset book - listing all assets the company owns.Cash book/ ledger - shows the other half of the entries from above - it's effectively the companies bank statement but will have timing differences due to cheques issued but not yet cashed (for purchases) and cheques received for sales but not yet cashed.Purchase ledger - listing all the purchases made and when payment was made - in larger companies they may have purchasing departments who manage this function.In larger companies, they have a credit control function to manage customer accounts which people often refer to the accounts receivable function. Sales ledger - lists all the invoices generated including when payments arrive.The main books administered by companies were/ are: Why use the term books? Before the advent of computers, each business would write down their figures in paper ledgers and keep records of their sales and expenses as they went along.

His bookkeeping system still survives today and used throughout the world.

#Starting a bookkeeping business manual

In fact, the central system of manual double-entry bookkeeping was invented more than five hundred years ago by a Cistercian monk called Luca Pacioli. The history of bookkeeping comes from the term 'bookkeeper' who is generally a person who keeps the 'books' for an organisation or business. Either set up as a self-employed bookkeeper working from home providing services to your customers or work for a firm of accountants preparing books for their companies. There are many opportunities to be successful producing accounts for small business owners in the UK. If you're thinking of starting your own bookkeeping business, then this article shows you what's required to become a bookkeeper and be successful in the long run.