It is important for a company to systematically record all of its financial transactions throughout the financial year not only for it to produce its statutory annual accounts at the financial year-end but also to embed a professional accounting system that will contribute to the growth of the business by allowing quick and easy access to important information on a day to day, week to week or month to month basis.

121 Company Formation are an experienced accounting company that offers a bookkeeping service to ensure your company’s day to day record of transactions and other financial information are all kept in a logical and organised way which will then be summarised in a set of year-end accounts from which the company’s corporation tax liability will be calculated.

What information does bookkeeping involve?

Bookkeeping involves, as the name suggests, keeping a book that records accounting activities in a certain way by:

  •   Issuing and recording financial documents such as invoices, purchase orders, receipts
  •   Posting amounts due and amounts paid to the debit and credit ledgers if using a double entry system
  •   Recording payroll information
  •   Reconciling customer payments to invoices
  •   Raising and recording payments for supplier invoices
  •   Making and recording loan repayments
  •   Monitoring and recording the depreciation off assets
  •   Generating periodic financial reports or management accounts

How is this information recorded?

There are two standard bookkeeping systems – double entry or single entry.

Single entry is by far the most simple and quick system and involves keeping a record of income and expenses in a chronological order from which the final accounts can be formulated by an accountant. Many small businesses find this a perfectly adequate system for their company’s needs.

The double entry system involves treating every transaction as having two parts and therefore two ledgers with one part being entered as a debit entry and the other as a credit entry. This system does allow errors to be easily detected since at any one time, the total of the debits must tally with the total of the credits.

Is bookkeeping different to accounting?

Yes, bookkeeping is a detailed record of every single transaction that a company undertakes whilst accounting summarises this information into a set of easily readable accounts or financial statements.

How much does the 121 Company formation bookkeeping cost?

As every company is different, we find it is better to offer a quote for our accountancy services for each individual company depending on certain criteria. However, companies that buy a company formation package from 121 Company Formation will qualify for a tailored reduced price accountancy package.

How long will I need a professional bookkeeper or an accountant?

Bookkeeping and accounting is an ongoing, fundamental part of your business. the work must be maintained to provide you with inherent reports to better serve your company's financial goals.

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