Bookkeeping & Accounts: bookkeeping is the process of recording the business financial transactions. All income received and expenditures paid need to be recorded and allocated to the right category. The wrong allocations can affect company profit or loss account such as overstated or understated income or expenses. The allocation of funds from shareholders to the business as sales will result in overstated income and profit while the allocation of funds from the business to shareholders as expenditures will result in higher expenses and lower profit. Thus bookkeeping and knowledge of double entries are important and any wrong allocations will affect the accounts.
As bookkeeping is time-consuming and requires skills and knowledge, most businesses outsource or pay accountants to do their bookkeeping.
Limited companies (including the dormant ones) must submit their accounts (Profit & Loss and Balance Sheet) to the Companies House annually. The deadline for filing their accounts is 9 months after the company year end. The company year end can be any month. There are penalties for missing the deadline:
Although sole traders and self-employed are not required to submit their accounts with their tax returns, the preparation of the accounts can be useful and also helpful when preparing their self assessment tax returns.
Some owner-managers do their own bookkeeping and prepare and file their own accounts and corporation tax returns in order to save accountancy fees. However, the accounts and corporation tax returns prepared by them usually contain errors and they later have to ask accountants for help. That is why they should choose a professional bookkeeping firm. We are one of the leading bookkeeping service providers in London, UK.
Whether you are in Bracknell or anywhere else, we can offer comprehensive bookkeeping and accounting services. Contact us to discuss your requirements in London, UK.