{"id":25097,"date":"2023-07-13T17:09:26","date_gmt":"2023-07-13T16:09:26","guid":{"rendered":"https:\/\/smh.group\/?p=25097"},"modified":"2024-02-08T11:41:58","modified_gmt":"2024-02-08T11:41:58","slug":"what-is-bookkeeping-bookkeeping-for-small-business","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/","title":{"rendered":"Bookkeeping for Small Businesses: 11 Tips for Getting Started"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Need help with small business bookkeeping? You\u2019ve come to the right place.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this blog post, you\u2019ll learn all about bookkeeping for small businesses, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is bookkeeping?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why do small businesses need bookkeeping?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can you do bookkeeping yourself?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">11 must-know tips for successful bookkeeping for small businesses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You\u2019ll also learn more about SMH Group\u2019s Accounting &#038; Business Advisory and our <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/bookkeeping-management-accounts\/\"><span style=\"font-weight: 400;\">bookkeeping services for small businesses<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sound good? Then let\u2019s jump right in!<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>What is Bookkeeping?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Bookkeeping is recording and tracking a business&#8217;s financial transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s a crucial part of the accounting process and gives businesses extra insight into their incomings and outgoings, providing opportunities to streamline costs and increase profitability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can learn all about bookkeeping basics in our blog on <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-and-why-do-you-need-it\/\"><b>what is bookkeeping<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Bookkeeping vs Accounting: What\u2019s the Difference?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many businesses get slightly confused between bookkeeping and accounting. So, which one do you need?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, bookkeeping is the initial part of the accounting process, which means the work of a bookkeeper and an accountant can overlap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accountants, particularly <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/\"><span style=\"font-weight: 400;\">Accounting &#038; Business Advisory<\/span><\/a><span style=\"font-weight: 400;\">, are usually more qualified than bookkeepers and can help businesses by interpreting the work of a bookkeeper.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bookkeepers generally focus on more administrative tasks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, bookkeepers can conduct tasks like data entry, bank reconciliation, invoicing, paying bills, monthly reporting, payroll, and tax preparation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While accountants typically do monthly reporting, payroll, tax preparation, and end-of-year reports to assist with overall business strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can learn more about Accounting &#038; Business Advisory and their work in our blog on <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-a-chartered-accountant\/\"><span style=\"font-weight: 400;\">what a chartered accountant is<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Why Do Small Businesses Need Bookkeeping?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Bookkeeping can be essential to running a successful business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enable you to determine how much you\u2019re spending and earning. This will let you pinpoint growth opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provide detailed and reliable financial information to assist with future budgeting decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Help ensure your invoices and payroll are paid on time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep your financial records up-to-date in the event of a tax audit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Empower you to work more efficiently with investors and lenders due to detailed financial records.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allow you to complete accurate tax returns.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allow you to find incorrect payments or fraud more easily.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>What\u2019s Involved in Bookkeeping for Small Businesses?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Bookkeeping covers the daily monitoring of a business\u2019s financial transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, it can cover a variety of monitoring and reporting, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounts payable<\/b><span style=\"font-weight: 400;\"> &#8211; Bookkeepers can identify outstanding invoices from suppliers and ensure they\u2019re paid on time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounts receivable<\/b><span style=\"font-weight: 400;\"> &#8211; They can create and send invoices and ensure payment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bank reconciliation <\/b><span style=\"font-weight: 400;\">&#8211; They can cross-reference your books against bank statements to confirm accuracy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data Entry<\/b><span style=\"font-weight: 400;\"> &#8211; Bookkeepers will record day-to-day financial transactions. How they record their transactions can depend on your chosen accounting method (more on this later).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monthly financial reports<\/b><span style=\"font-weight: 400;\"> &#8211; Day-to-day financial transactions can be summarised in a monthly report, enabling small businesses to understand their performance and identify growth opportunities.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payroll <\/b><span style=\"font-weight: 400;\">&#8211; Some bookkeepers can manage payroll to pay staff and HMRC.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax filing<\/b><span style=\"font-weight: 400;\"> &#8211; Some bookkeepers can claim back taxes for your businesses and prepare tax returns.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Small business financial activity is usually recorded in three main financial records, otherwise known as \u201cbooks.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This includes:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cashbook<\/b><span style=\"font-weight: 400;\">, which records your incoming and outgoing cash flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sales invoices <\/b><span style=\"font-weight: 400;\">show what you\u2019ve sold through paid and unpaid invoices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Purchase invoices<\/b><span style=\"font-weight: 400;\"> show what you\u2019ve bought.\u00a0<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<h3><b>Can I Do Bookkeeping Myself?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As a business owner, keeping costs down is vital for enhancing profitability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And you may be tempted to keep your bookkeeping in-house to help cut costs instead of outsourcing. But is this something you can do?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bookkeeping can be a time-consuming and difficult process. But it is possible to do it independently, especially if you\u2019re a very small business with a limited number of complex financial transactions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, you\u2019ll need to dedicate time to learning how to bookkeep and may need to pay for software.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although it\u2019s possible to do bookkeeping on your own, most businesses choose to outsource their bookkeeping. This is especially true for small businesses that may not have the time or resources to manage their books accurately and comprehensively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Outsourcing your bookkeeping to a company like <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/\"><span style=\"font-weight: 400;\">SMH Group<\/span><\/a><span style=\"font-weight: 400;\"> will enable you to focus on the day-to-day running of your company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A professional bookkeeper and accountant can record your data, interpret it, and provide suggestions needed to improve your business&#8217;s performance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>11 Tips for Small Business Bookkeeping\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re planning on going solo or are looking to outsource your bookkeeping, the next 11 tips are essential for good small-business bookkeeping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get into it:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Record Every Financial Transaction<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your first step: Record everything!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use your books to track every incoming and outgoing, with details on the transaction and the date it occurred so you can easily find them later.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How you record these transactions will depend on the type of bookkeeping you use and the accounting method you choose.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Choose Your Bookkeeping Type: Single-Entry vs Double-Entry<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are two main bookkeeping types for small businesses: single-entry bookkeeping and double-entry bookkeeping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Single-entry is the most basic form of bookkeeping and records all financial transactions in one row.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s best used for small businesses with fewer complex business transactions and effectively tracks cash, taxable income, and tax-deductible expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These transactions are usually recorded in a cash book. You can see an example below:<\/span><\/p>\n<table style=\"height: 427px;\" width=\"706\">\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Date<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Description<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Income<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Expenses<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Bank Balance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June 1<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Balance<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">1000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June 2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Invoice Paid &#8211; Company Inc<\/span><\/td>\n<td><span style=\"font-weight: 400;\">250<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">1250<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June 3<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Website Re-Design<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">200<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1050<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June 4<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Invoice Paid &#8211; Company Inc<\/span><\/td>\n<td><span style=\"font-weight: 400;\">150<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">1200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June 5<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Invoice Paid &#8211; 2Company Inc<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">200<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Ending Balance<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">400<\/span><\/td>\n<td><span style=\"font-weight: 400;\">400<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Double-entry bookkeeping is slightly more complex. Here, every transaction is recorded at least twice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This reflects the complexity of business transactions, as each transaction can have a knock-on effect and impact different aspects of the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if you make a sale, your stock will be lowered, and a tax liability on the VAT you collected will be created.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Double-entry bookkeeping is better for bigger businesses with more complex transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also the preferred choice for investors as double-entry bookkeeping provides a much more detailed transactions list.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Choose Your Accounting Method: Accrual vs Cash<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your next step is choosing your accounting method.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cash accounting is based on cash flow and records transactions from when cash changes hands.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accrual accounting records transactions when they occur, not when cash changes hands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is an important distinction for companies that offer credit, as you may get paid long after a deal is made.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, cash accounting reduces the risk of paying tax on money you haven\u2019t received.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Conduct Bank Reconciliation<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Having an accurate record of all financial transactions is one of the core responsibilities of a small business bookkeeper.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But how can you ensure your data is correct?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the best methods is bank reconciliation. Here, you will compare your books to your bank statement to see if all the incomings and outgoings match up.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a great way of spotting errors and will allow you to quickly solve mistakes before they become a headache later down the line.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Monitor Cash Flow And Keep an Eye on Expenses<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A good bookkeeper will understand a business\u2019s cash flow and know exactly where the incomings and outgoings occur.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And there are two big benefits of doing this:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Firstly, understanding what money is available will dictate the stock you can buy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Secondly, tracking your outgoings can massively reduce your overhead by claiming tax back from business expenses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The latter case is an excellent example of why well-documented books are important, as you\u2019ll need receipts to back up your claims from HMRC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember also that cash flow goes beyond the money in your business account. You should also think about any outstanding invoices and the VAT you owe.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Watch Out for Late Payments And Keep on Top of Deadlines<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Successful businesses will know what money is owed and when it needs paying.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As part of the bookkeeping process, keeping a list of payments and when they should be paid is vital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This works for both the money your business owes, such as to HMRC, and what your customers owe you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if your company gives customers credit, you should make a note of late payers and consider no longer offering your services to them. This will help you keep better track of your incomings and make your cash flow more reliable.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Choose the Right Bookkeeping Software for Small Businesses\u00a0<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you want to conduct your own bookkeeping or want to employ the services of an expert bookkeeper, having the right bookkeeping software can dramatically speed up the process and minimise the chance of errors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are three ways software can help your small business bookkeeping.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A good software can automatically pay your bills.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It can alert you when invoices are paid and send reminders to those who owe money.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Some bookkeeping software lets you instantly see your cash flow &#8211; even from your mobile phone.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But the question is:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What is the right accounting software?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few features to keep an eye out for when shopping around for online software.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This includes automatic reconciliation &#8211; software that connects with banks to reconcile transactions against your records automatically &#8211; and secure cloud storage to keep your data safe and accessible.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Properly Order Your Bank Statements and Invoice for Ease of Use<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Properly organised books can save you hours of time and money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By organising your bank statements and invoices intelligently, such as in date order, you can prevent time wasted finding your documents and reduce the chances documents are lost and filed late &#8211; leading to fines.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Purchase invoices will benefit from being stored alphabetically by the supplier name and be separated by paid and unpaid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, sales invoices can be put in the order they should be paid. This will enable you to identify invoices near their deadline and allow you to chase payments.\u00a0<\/span><br \/>\n<b><\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Pay Tax\u00a0<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The world of <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/\"><span style=\"font-weight: 400;\">taxation<\/span><\/a><span style=\"font-weight: 400;\"> can be complicated.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With several potential taxes you need to pay, like <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/income-tax-national-insurance\/\"><span style=\"font-weight: 400;\">income tax &amp; national insurance<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/corporation-tax\/\"><span style=\"font-weight: 400;\">corporation tax<\/span><\/a><span style=\"font-weight: 400;\">, and Value-Added Tax &#8211; it can be easy to get lost and lose track of it all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good bookkeeper and accountant will know exactly what taxes apply to your company and how and when to submit tax returns like <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/vat-returns\/\"><span style=\"font-weight: 400;\">VAT returns<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can get more complex when considering the new HMRC scheme <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/making-tax-digital\/\"><span style=\"font-weight: 400;\">Making Tax Digital<\/span><\/a><span style=\"font-weight: 400;\">, which introduced new requirements for keeping your accounting records digitally accessible.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it\u2019s currently in place for <\/span><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/vat\/\"><span style=\"font-weight: 400;\">VAT<\/span><\/a><span style=\"font-weight: 400;\">, there are further plans for making income tax self-assessments digital in April 2024.\u00a0<\/span><b><\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>\u00a0Generate Monthly Reports<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Reporting can give you a detailed insight into your company\u2019s performance and will enable you to adapt to downturns and avoid nasty shocks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are two main types of reports you\u2019ll want to prepare.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>balance sheet <\/b><span style=\"font-weight: 400;\">measures your company&#8217;s value by subtracting what your company owes (liabilities) from what your company owns (assets).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The<\/span><b> Profit and Loss Statement <\/b><span style=\"font-weight: 400;\">measures your profitability by subtracting your expenses (the money spent by your business) from your revenue (the money earned).<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Know When You Need Help<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Bookkeeping can be time-consuming.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if your company is growing and ramping up the number of transactions, it may be best to outsource your bookkeeping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies like SMH Group have helped hundreds of businesses manage their books better for over 25 years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can help you review and improve your existing accounts systems or even design and implement a new one to handle your needs better.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contact us today to learn more about how we can benefit your business.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Need help with small business bookkeeping? You\u2019ve come to the right place. In this blog post, you\u2019ll learn all about bookkeeping for small businesses, including: What is bookkeeping? Why do small businesses need bookkeeping? Can you do bookkeeping yourself? 11 must-know tips for successful bookkeeping for small businesses. You\u2019ll also learn more about SMH Group\u2019s Accounting &#038; Business Advisory and our bookkeeping services for small businesses. Sound good? Then let\u2019s jump right in! &nbsp; What is Bookkeeping? Bookkeeping is recording and tracking a business&#8217;s financial transactions. It\u2019s a crucial part of the accounting process and gives businesses extra insight into their incomings and outgoings, providing opportunities to streamline costs and increase profitability.\u00a0 You can learn all about bookkeeping basics in our blog on what is bookkeeping. &nbsp; Bookkeeping vs Accounting: What\u2019s the Difference? Many businesses get slightly confused between bookkeeping and accounting. So, which one do you need? Essentially, bookkeeping is the initial part of the accounting process, which means the work of a bookkeeper and an accountant can overlap. Accountants, particularly Accounting &#038; Business Advisory, are usually more qualified than bookkeepers and can help businesses by interpreting the work of a bookkeeper. Bookkeepers generally focus on more administrative tasks. [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":24942,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bookkeeping for Small Businesses - Beginner\u2019s Guide<\/title>\n<meta name=\"description\" content=\"Learn more about bookkeeping for small businesses in our guide. 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Find 11 crucial tips and how SMH Group can help support your bookkeeping.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-13T16:09:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-08T11:41:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2023\/06\/northfolk-Ok76F6yW2iA-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1980\" \/>\n\t<meta property=\"og:image:height\" content=\"1114\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cathal Saunders\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cathal Saunders\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/\"},\"author\":{\"name\":\"Cathal Saunders\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/7b5226a5839c88b38fae53bb2eb98eea\"},\"headline\":\"Bookkeeping for Small Businesses: 11 Tips for Getting Started\",\"datePublished\":\"2023-07-13T16:09:26+00:00\",\"dateModified\":\"2024-02-08T11:41:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/\"},\"wordCount\":1958,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2023\/06\/northfolk-Ok76F6yW2iA-unsplash-scaled.jpg\",\"articleSection\":[\"SMH\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/\",\"name\":\"Bookkeeping for Small Businesses - Beginner\u2019s Guide\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/what-is-bookkeeping-bookkeeping-for-small-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2023\/06\/northfolk-Ok76F6yW2iA-unsplash-scaled.jpg\",\"datePublished\":\"2023-07-13T16:09:26+00:00\",\"dateModified\":\"2024-02-08T11:41:58+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/7b5226a5839c88b38fae53bb2eb98eea\"},\"description\":\"Learn more about bookkeeping for small businesses in our guide. 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