Bookkeeping

Essentials › Accounting › Bookkeeping

Finance foundationsUnited Kingdom

The problem it solves

When bookkeeping slips, problems build up quietly. Transactions sit uncategorised, receipts go missing and nobody can say with confidence what the business made this month or who still owes it money. Every tax return and decision then starts from guesswork, and catching up later costs far more than keeping up.

What it covers

  • Recording every sale, purchase and payment in cloud accounting software
  • Reconciling bank, card and payment-platform accounts to their statements
  • Matching receipts and bills to transactions
  • Keeping customer and supplier balances accurate
  • Flagging unusual items, duplicates and missing paperwork

Who it is for

Owner-managed limited companies that want to stop doing their own books in the evenings, or that have outgrown a part-time bookkeeper. It is the base layer for every other finance service.

Good to know in the UK

  • HMRC expects companies to keep business records for at least six years from the end of the accounting period they relate to.
  • If you are VAT-registered, Making Tax Digital requires your VAT records to be kept digitally and returns to be filed through compatible software.
  • Under the Companies Act 2006, directors remain responsible for keeping adequate accounting records, even when the work is done by someone else.

Questions to ask a provider

  • How often will my books be updated: weekly or monthly?
  • Which software do you use, and will I keep ownership of the data?
  • Who reviews the work, and are they qualified?
  • What happens to my records if I move to another provider?

This is a plain-English summary for United Kingdom businesses. It is general information, not financial, tax or legal advice, and rules change: facts last checked 8 November 2026. Speak to a qualified adviser about your own situation.