Bookkeeping Health Check in Nottingham

Bookkeeping

What is Bookkeeping?

Bookkeeping is the practice of recording and tracking the financial transactions of a business. Bookkeepers regularly summarise this activity into reports that show how the business is doing. They may also perform wider tasks such as invoicing, paying bills, preparing tax returns, monitoring key performance indicators and providing strategic advice.

Why Bookkeeping Matters

While it may seem obvious, detailed, thorough bookkeeping is crucial for businesses of all sizes. Seemingly straightforward, bookkeeping quickly becomes more complex with the introduction of tax, assets, loans, and investments.

Tracking the financial activities of a business is the truest purpose of bookkeeping, meaning it allows you to keep an up-to-date record of the current incoming and outgoing amounts, amounts owed by customers and by the business, and more.

Balanced bookkeeping boosts a company’s or individual’s credibility by providing accurate financial information that investors, lenders, and other stakeholders can rely on.

Bookkeeping Health Check

What is a Bookkeeping Health Check?

We carry out a number of checks to ensure that good bookkeeping practices are in place. This would typically see us looking at things like:

  • Do the previous year’s balances agree to year-end accounts?
  • Are all bank and control accounts fully reconciled?
  • How up to date are aged receivables and payables and are they being managed?
  • How payroll elements have been allocated and whether the PAYE and net pay accounts are correct
  • Are there any clear omissions or issues from reviewing the P&L and the Balance Sheet?
  • Are transactions being coded correctly and consistently?
  • Has the VAT been reconciled?
  • Balanced bookkeeping

Benefits of a Bookkeeping Health Check?

What are the Benefits of a Bookkeeping Health Check?

Image for Ensure Your Company Accounts Are Accurate

Ensure Your Company Accounts Are Accurate

Accurate accounting helps your business create and control company budgets to know when and how money is coming and going from your business.

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Ensure Your VAT Returns Are Accurate

HMRC may charge you penalties and interest if an error is due to careless or dishonest behaviour. That’s why it’s important to keep accurate and up to date, VAT returns.

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Identify Any Errors, Omissions or Duplications

Accounting errors are unintentional bookkeeping errors and are sometimes easy to identify and fix. A health check can help you identify and quickly fix any errors.

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Avoid Costly Mistakes

It provides a level of transparency and granularity that helps reduce potential errors and sheds light on other areas where they can save money or make recommendations about costs.

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Confidence In Your Financial Data

Financial confidence in business decreases risk. Having a more detailed and confident plan means the business will be able to spend more time on the business.

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Efficient Bookkeeping

With efficient bookkeeping, you can identify money-making opportunities, avoid cash-flow problems, and find ways to increase income or decrease spending.

How can Seagrave French help you?

How can Seagrave French help you?

Let us review your book-keeping system to advise on…

  • The right book-keeping system for your business
  • If the information being produced is accurate and reliable
  • How you can spend less time keeping your books
  • VAT errors – before the VAT Man finds them!
  • Specific training needed for book-keeping staff
  • How you could produce more relevant management information that is useful to manage your business
bookkeeping health check, balanced bookkeeping

BOOKKEEPING HEALTH CHECK

BALANCED BOOKKEEPING

Balanced bookkeeping refers to the practice of ensuring that the financial records of a business or an individual are accurate and in balance.

In balanced bookkeeping, the total amount of debits recorded in a set of financial transactions must equal the total amount of credits recorded in the same set of transactions. This means that every financial transaction must be recorded in at least two accounts, with one account being debited and another account being credited.

The purpose of balanced bookkeeping is to ensure that the financial records accurately reflect the financial position of a business or individual. This information is essential for making informed financial decisions, managing cash flow, and preparing financial statements such as income statements and balance sheets.

At Seagrave French, we provide a comprehensive bookkeeping solution such as balanced bookkeeping that ensures your financial records are accurate and up-to-date.

Our team of experienced bookkeepers uses the latest accounting software for balanced bookkeeping and to record and organize your financial transactions, so you don’t have to worry about it.

Our team is committed to providing personalized services tailored to your specific needs in balanced bookkeeping and bookkeeping itself. We work closely with you to understand your business and provide the best possible solutions.

Don’t let bookkeeping tasks distract you from running your business. Let us handle the books so you can focus on what you do best. Contact us today to learn more about our balanced bookkeeping services and how we can help you streamline your financial operations.

IMPORTANCE OF BALANCED BOOKKEEPING

Balanced bookkeeping is essential for maintaining accurate financial records, complying with tax regulations, managing cash flow, detecting errors and fraud, planning for the future, conducting business analysis, and improving credibility. Here are several reasons why balanced bookkeeping is important:

Accurate Financial Statements: Balanced bookkeeping ensures that the financial statements accurately reflect the financial position of the business or individual, which is essential for making informed financial decisions.

Tax Compliance: In balanced bookkeeping. accurate bookkeeping is necessary for tax compliance, as it allows businesses or individuals to accurately report their income, expenses, and deductions to the tax authorities.

Improved Cash Flow Management: Balanced bookkeeping helps businesses or individuals to manage their cash flow more effectively by providing a clear picture of their income and expenses.

Detection of Errors and Fraud: Balanced bookkeeping makes it easier to detect errors or fraudulent activities, such as embezzlement, by comparing the recorded transactions with the actual transactions.

Financial Planning: Balanced bookkeeping provides a clear understanding of a business’s financial position, which is essential for making informed financial decisions and planning for the future.

Business Analysis: Balanced bookkeeping provides the necessary data to conduct a thorough analysis of a business’s financial performance, which can be used to identify areas for improvement and growth.

Improved Credibility: Balanced bookkeeping improves the credibility of a business or individual by providing accurate financial information that can be relied upon by investors, lenders, and other stakeholders.

Seagrave French Chartered Accountants

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