Bookkeeping is one of the fundamental processes in accounting that is essential for every business.
Its primary task is to record financial transactions at the proper places in the accounting books. If you are a UK-based business then need to ensure that bookkeeping and accounting are done as per HMRC guidelines.
A proper following of bookkeeping activities can improve better accuracy in accounting.
Many small businesses in the UK tend to neglect bookkeeping activities and several companies do not even have dedicated bookkeepers.
Now there are some main activities in accounting that have to be done in a proper way.
It is also applicable to small businesses too.
Few bookkeeping tasks have to be done on a daily basis that records all the financial transactions.
What are the main bookkeeping activities that are essential in accounting?
Some bookkeeping tasks are very essential for the business organization in the UK and need to be done regularly.
Here are some of the main activities of bookkeeping:
1. Recording paying bills
Businesses have to deal with different types of bills like rent, utilities, invoices, etc. In order to avoid unnecessary piling of the bills, it is essential to address these bills soon.
2. Follow up on emails
Now, most businesses are following paperless activities for tasks like bank & credit, cheques, card statements, invoices, etc. So, proper tracking of all the emails is essential for the bookkeepers.
3. Reconciliation of transactions
If a bank account is integrated with the accounting software then you do not have to worry about it. You only have to check all the pending transactions in the business properly.
4. Recording up-to-date information
You need to keep a record of all the financial information properly. A regular archiving of the files must be done to ensure that the records are kept properly.
5. Categorization of expenses
Businesses have some expected expenses and few unexpected expenses. Proper categorization of all the expenses depending on different criteria must be done.
6. Sending invoices to customers
Bookkeepers must ensure that all the invoices of the businesses are sent to the customers. This will help to ensure proper payments to the company over a longer duration.
7. Reconcile bank accounts
Reconciling the bank accounts regularly is essential to ensure that there are no errors or frauds. It will bring better accuracy to the accounting system of the business to help achieve its stability.
8. Keep checking on budget
Bookkeepers must keep a proper check on their budget to ensure that the expenses do not exceed as per decided. It will also encourage better decision-making for the management and business owners.
9. Keep data backup
Although you take all care of the data while handling bookkeeping, they still are prone to problems. like stolen, misused, or lost which can cause many problems. So, a regular backup of the financial data must be done.
10. Petty cash management
Petty cash is very essential to keep day to day based bookkeeping tasks smooth. Also, it is essential to keep track of all the expenses. So, you need to manage the petty cash properly.
Conclusion
These are some important bookkeeping activities to be done properly in the bookkeeping. Performing these main activities in accounting as per HMRC rules will help businesses to run better.
Meru Accounting provides outsourced bookkeeping activities for different businesses in the UK. All team members here are well-qualified, having nice experience in bookkeeping.
They use accounting software to do bookkeeping tasks to manage it properly. Meru Accounting is a popular accounting service-providing agency around the world.
