Bookkeeping Advice

Here at Guy Bridger Ltd we would like to encourage the self employed, partnerships or anyone who keeps records for a limited company to try their best at bookkeeping. Keeping good books will allow us to help you more efficiently at the same time as benefiting yourself.

Why is it important?

Keeping good financial records is very important for any business. By law you are required to keep records of any invoices, receipts and bills that you use on your tax return for 6 years.

Also, if your books are good, you will be able to have an accurate picture of the financial situation of your business. Being able to see the financial value of your debtors and creditors are at any single time will allow you to see if you have the correct cash flow to pay any current or future expenses.

Being able to see your turnover at any point is especially useful for a small business. This is because, if at any point  in any 12 month period your turnover reaches the VAT registration threshold, you are required to become registered for VAT. Without efficient books VAT returns can also become a very time consuming process.

Keep it simple

If you are keeping books for your business it is best to try keep it as simple as you can. You should keep your income separate from your expenses to avoid any confusion.

It is possible to keep records in whatever format suits you. You may want to keep a simple spreadsheet, a physical book. It is also possible to buy packages for the computer that can help you keep books.

Whatever your preferred method, it is best to list your income and expenses in separate columns and categorise your expenses into different areas (for example motoring and admin). Depending upon the size of your business, keep a total your expenses and income  for each week, month or year.

Keeping good records will make life much easier for both you and us.

If you require assistance from Guy Bridger Ltd. and would like to use any of our other services please feel free to contact us.