What does monthly bookkeeping include?
Keeping your accounting books properly is one of the important aspects of every business organization. Basic bookkeeping will include all the important activities of recording financial transactions properly.
If you are a UK-based Company then you need a proper certified bookkeeper to handle bookkeeping as per HMRC guidelines. It can be really difficult for an average team of bookkeepers to maintain the quality of bookkeeping due to a lot of activities included in it.
Inefficiency in doing these basic activities will incur more time for the staff to do these activities. There are some activities that are surely reflected in the accounting books on a monthly basis.
What monthly basic bookkeeping activities are included in the bookkeeping for UK firms?
There is a list of activities that need to be completed by the UK firm in the accounting books which can be done by a certified bookkeeper.
Here is a checklist of monthly bookkeeping activities included for UK firms:
1. Recording financial transactions
This involves documenting all business transactions such as sales, purchases, expenses, and payments. It includes recording details such as dates, amounts, descriptions, and relevant accounts. These financial transactions need to be recorded in proper places in the accounting books.
2. Bank reconciliation
Matching the transactions recorded in the company’s books with the corresponding entries in the bank statements. Any discrepancies are identified to detect inefficiencies and resolved to improve the account payables.
3. Accounts receivable
Managing the company’s sales invoices, tracking customer payments, and following up on any outstanding receivables. This must improve the cash flow of the firms.
4. Accounts payable
Maintaining records of vendor invoices, tracking payments, and ensuring timely settlement of bills. Here, the firm can build better relations with its vendors along with efficient financial management.
5. Payroll processing
Calculating employee salaries, deducting taxes and other contributions, and managing payroll records. It involves staying compliant with relevant employment laws and regulations.
6. VAT returns
If the company is registered for Value Added Tax (VAT), prepare and submit VAT returns to HM Revenue and Customs (HMRC) on a regular basis.
7. Expense management
Reviewing and categorizing business expenses, ensuring they are properly recorded and supported by appropriate documentation. This can help the firm to reduce costs.
8. Financial statement preparation
Generating monthly financial statements, including an income statement (profit and loss statement) and a balance sheet. These financial statements will help to give a financial overview of the company.
9. Financial analysis
Analyzing the financial statements, identifying trends, and providing insights into the company’s financial health. Business owners can make better decisions with this.
10. Recordkeeping:
Maintaining organized and accurate financial records, including receipts, invoices, bank statements, and other relevant documents. Proper data security must be ensured here.
These are the general basic bookkeeping checklist of the activities included in general for UK-based firms. However, the scope and pattern can vary depending on the specification as per industry, size of the company, or other types of requirements.
If you find it difficult to bring efficiency to the bookkeeping of your firm then you can outsource this task to the experts. Meru Accounting provides outsourced bookkeeping tasks for firms.
This work will include all the basic bookkeeping activities that are required on a monthly basis. Their certified bookkeeper can efficiently handle these activities. Meru Accounting is a proficient accounting services providing company across the world.
