What bookkeeping actually involves
Bookkeeping is the routine job of recording every sale, every cost and every payment in and out of the business. Done properly, each bank transaction is matched to an invoice or a receipt, put in the right category and checked against the bank statement. That last step is called a bank reconciliation, and it is how you know the figures in your software match the money that really moved.
Most of the problems we see at year end come from bookkeeping that was skipped for a few months and then rushed. A café owner on the North End Road, for example, may have card takings, cash takings, delivery platform payouts and supplier direct debits all landing in the same account. If nobody sorts those as they happen, it can take days to untangle them in the weeks before the 31/1 tax return deadline.
How we work with you each month
We agree a routine at the start. For most clients that means we connect to your bank feed in your accounting software, you send or upload your receipts and sales invoices as you go, and we process and reconcile everything once a month. Busier businesses sometimes prefer a weekly cycle.
When something does not make sense, such as a transfer with no reference or a card payment to a supplier we have not seen before, we ask you rather than guess. A short list of questions once a month is far easier for you to answer than a long list in the week before a deadline.
At the end of each month you get a simple summary of income, costs and what you owe and are owed. If you also want fuller monthly reports with commentary, that is covered by our management accounts service.
What is included
- Monthly or weekly processing of sales and purchases
- Bank and credit card reconciliations
- Receipt capture and digital record keeping
- Supplier and customer balance checks
- VAT coding ready for your VAT return
- Catch up work for books that have fallen behind
- A short monthly summary of income and costs
- Year end handover to your accounts preparation
What to have ready when you start
You do not need perfect records to get started. We often pick up businesses in Parsons Green and Sands End whose books are months behind. To begin, it helps to gather the following.
- Online access to your business bank accounts, or recent statements
- Login details for any accounting software you already use
- Sales invoices issued and supplier bills received since your last accounts
- Receipts for cash and card spending
- Your VAT registration number and payroll details, if you have them
- Your last set of accounts or tax return
Common bookkeeping mistakes we fix
Mixing personal and business spending is the most common one. It is not illegal, but every personal item has to be found and taken out, and that takes time. A separate business account saves you money on bookkeeping straight away.
Another frequent issue is recording the same sale twice: once when the invoice is raised and again when the money arrives. The software then shows more income than you earned, and you could end up paying tax on money you never received. We also see VAT entered on costs from suppliers who are not VAT registered, and loans or owner payments booked as income.
Old receipts are another gap. HMRC expects business records to be kept. For a sole trader that means at least 5 years after the 31/1 filing deadline for the tax year, and a limited company should keep records for 6 years from the end of the financial year. We store digital copies inside the software so they are attached to each transaction.
Catch up bookkeeping
If you have fallen behind, we can bring the books up to date in one block of work before moving you onto a monthly routine. We start with the bank statements, because they are the most complete record you have, and then match invoices and receipts to them.
Where receipts are missing, we tell you plainly which costs we cannot support and why. We would rather leave out a cost we cannot evidence than claim it and have HMRC question it later.
Bookkeeping and Making Tax Digital
VAT registered businesses already have to keep digital records and send VAT returns through compatible software. Making Tax Digital for Income Tax started on 6/4/2026 for sole traders and landlords with qualifying income over £50,000, and it moves down to £30,000 from 6/4/2027. That means quarterly updates to HMRC, which only work if the bookkeeping is up to date every quarter.
If you are a sole trader in Fulham who is coming into these rules, setting up proper monthly bookkeeping now is the simplest way to be ready.
Who this suits
- Sole traders who want their records ready for Making Tax Digital
- Small limited companies that need clean books for year end
- Shops, cafés and restaurants with lots of card and cash takings
- Landlords with several properties and many small costs
- Business owners whose records are months behind
- Growing firms that do not yet need a full time bookkeeper
Common questions
How much bookkeeping do I need for a small business?
It depends on how many transactions go through your bank each month. A freelancer with ten invoices may need a quick monthly check, while a restaurant with daily takings needs more regular work. We look at your bank activity first and then agree a fixed fee before any work starts.
Can you do my bookkeeping if I already use accounting software?
Yes. We can work inside the software you already have, as long as it is suitable for your business and for Making Tax Digital. If it is not, we will explain why and suggest an alternative.
Do I have to keep paper receipts?
No. HMRC accepts digital copies, as long as they are clear and complete. Most of our clients take a photo of each receipt and upload it, and we attach it to the matching transaction.
What is the difference between bookkeeping and accounts?
Bookkeeping is the day to day recording of transactions. Accounts are the year end statements built from those records, which go to HMRC and, for a limited company, to Companies House. Good bookkeeping makes the accounts quicker and more accurate.
My books are a year behind. Can you still help?
Yes. We do catch up bookkeeping regularly, starting from your bank statements. We will tell you early if there are gaps we cannot fill, so you can look for missing paperwork while there is still time before your deadline.
Do you meet clients in Fulham?
Most of our bookkeeping is done remotely through shared software, which keeps things simple for busy owners. If you would prefer to talk things through in person, mention it in your enquiry and we will see what we can arrange.
Will you handle my VAT return as well?
If you are VAT registered, we code VAT as part of the bookkeeping so the figures are ready. Submitting the return to HMRC is part of our VAT returns service, and many clients take both together.