What is accounting?

Accounting is the practice of keeping a clear, organised record of all the money coming into and going out of your business, and turning those records into reports that show how the business is really doing.

The main reports are the income statement (did you make a profit or a loss?), the balance sheet (what the business owns and what it owes) and the cash flow statement (where your cash came from and where it went).

Why is it important?

• Knowing where you stand: accurate books tell you whether the business is profitable, and how much cash you really have.
• Better decisions: pricing, buying stock and expanding are all easier when you can see the numbers.
• Meeting legal requirements: companies are expected to keep proper accounting records.
• The base for your tax: your tax returns are only as accurate as the accounts behind them.
• Banks and investors: lenders and investors will ask for your financial statements before they put money into your business.
• Spotting problems early: regular records make overspending, unpaid customers and even theft easier to catch.
• Ready for audits: well-kept records make any audit faster and less stressful.

What exactly do you assist with?

Here is what each part of this service means in plain language.

• Bookkeeping: the day-to-day recording of your sales, purchases, expenses and payments so that nothing goes missing.
• Bank reconciliations: comparing your records with your bank statements to make sure the two agree, and finding out why if they do not.
• Debtors and creditors: keeping track of money customers owe you (debtors) and money you owe your suppliers (creditors).
• Financial statements: preparing the income statement, balance sheet and cash flow statement at the end of the year.
• Management accounts: shorter, regular reports (often monthly) so you can follow how the business is doing during the year, not only at year-end.
• Assets register: a list of the equipment, vehicles and property the business owns, and how their value changes over time.
• Payroll records: working out salaries and deductions and keeping proper payroll records for your employees.
• Noting dates and submissions: tracking when accounting information is needed for tax, statutory returns or audits periodically.

How the process works

1. Set-up. we learn how your business earns and spends money, and agree what you will send us and how often.
2. Send us your records. invoices, receipts and bank statements, on a schedule that suits you.
3. We record and check. everything is entered, sorted and matched against your bank.
4. We report. you receive clear reports on how the business is performing.
5. We explain. we go through the numbers with you and answer your questions.
6. Year-end. we prepare your financial statements, ready for tax, statutory returns or audit.