What is bookkeeping?
Bookkeeping is the process of recording the financial transactions which happen in a business, such as sales, expenses, or business loans. Keeping financial records like this is a requirement for anyone who makes money from self-employment or property.
You might be a self-employed sole trader, the director of a limited company, a contractor, or make money from a property that you own.
A Self Assessment is a type of tax return used to tell HMRC about income that you’ve received, but not yet paid any tax on.
Is bookkeeping useful?
Bookkeeping might be a requirement for businesses, but it’s also a useful source of information. Aside from your legal obligations, bookkeeping also allows you to monitor the financial health of your business or enterprise, meaning you can keep track of your profit margins and turnover, and be alert to any unpaid invoices and debts owing.
Can I do my own bookkeeping?
You can, but just be aware that accurate up-to-date bookkeeping is essential! If you don’t have the time or knowledge to keep on top of your accounts, things can quickly spiral out of control.
You might find it useful to research easy-to-use accounts software, or even outsource your bookkeeping altogether.
