Have some questions about bookkeeping? As the provider of the bookkeeping services Peterborough businesses trust, we’re on hand to tell you everything you need to know.
Defining bookkeeping
First of all, what exactly is bookkeeping? To put it simply, bookkeeping is the task of keeping track of every financial transaction that is made by a business. This will be a process that runs from the opening of a firm right through to its closing – so it’s a job that you will need to allocate to someone you can count on to keep an accurate record that can be accessed and analysed whenever you need.
What is involved in bookkeeping?
What are the key elements of bookkeeping? What does a bookkeeper need to keep track of? Well, to understand that, you need to look at what kind of financial transactions a business would be making. It’s generally accepted that a business’ main areas of accounting are as follows:
• Assets
• Liabilities
• Equity
• Revenue
• Expenses
• Costs
Whoever is responsible for bookkeeping in your business will record all transactions that relate to the above, helping to build an accurate picture of your company’s financial standing.
Investing in bookkeeping will allow you to keep an up-to-date record of your business’ income and outgoings, as well as the amount owed by you and your customers.
Is bookkeeping the same as accounting?
The terms bookkeeping and accounting are often used interchangeably, but there are actually a number of differences between the two. Accounting is the overall practice of managing the finances of a business, and while bookkeeping is defined as the recording of the financial activities of a business. So, you could say that bookkeeping is a type of accounting – but it’s a role that requires a great deal of skill and experience.
Why bring in the professionals?
Keeping an accurate record of your company’s financial transactions may seem straightforward at first, but when you factor in things like tax, assets, loans, and investments, it’s easy for the picture to become somewhat muddled. Accurate and up-to-date bookkeeping will allow you to keep a close eye on how much you are spending, and how much is coming in – helping you to balance the books more effectively.
If you want to outsource your bookkeeping, finding the right accountant is key. Luckily for you, we are the providers of bookkeeping services Peterborough clients trust. From established local names to brand new start-ups, we know how to keep an accurate, ongoing record that will tell you (and HMRC, if needed), everything you need to know about the financial well-being of your business.
Find out more today
If you want to find out more about us and the services that we offer, please do not hesitate to get in touch with a member of our team today. We’d be happy to answer your questions and give you all the information you need to proceed with confidence.