bookkeeping 101

As a landlord you will have various recurring obligations such as gas and electrical safety checks, contract renewals, insurance renewals etc. Once you’ve added your first property in the landlord dashboard you will see a “Reminders” button appear in the top right. Property – Each property creates a project tag, meaning that all rental income and expenditure can be assigned to a specific property. This allows you to create income / expense reports on a per-property basis.

bookkeeping 101

When your tenant pays the rent you can then attach the payment to this invoice. In addition, our learning advisers and personal tutors are on hand with help, advice and encouragement whenever you need them. So browse our courses and get in touch if you have any questions before you enrol.

Your one stop shop for starting a business

Once you’re registered for VAT, you must charge the applicable tax rate on any products or services you sell. The deadline to file your tax return is 31 January following the end of the relevant tax year. You need to pay your tax bill too (there’s also payment on account to be aware of). For small business owners, managing money is especially important because your startup capital may not be enough to cover your daily expenses.

bookkeeping 101

Making sure your bookkeeping is as current as possible helps avoid confusion or errors later on. If you’re not going to outsource your bookkeeping (or get someone in-house), shop around for bookkeeping software which will help you stay up-to-date. With all that data flying round you can see why bookkeeping can be such a laborious bookkeeping for startups job, although using bookkeeping software (like our very own Pandle!) can significantly speed this up. Double-entry bookkeeping shows that any business transaction represents some sort of exchange. Recording the transaction twice (hence the name ‘double-entry’) allows your bookkeeping to show both sides of this exchange.

Clerk’s Toolkit: Bookkeeping Basics

Having your personal and business finances separate will make it easier to watch your cash flow and claim expenses. You won’t have to go through each transaction and remember whether it was for work or not. If you’re a sole trader or run a small company then your bookkeeping is likely to be fairly straightforward. There are no rules that say you have to outsource your bookkeeping, so doing it yourself (or using software that makes it easier) can save you money. As a director you’re separate from your company, so you’ll need to report the business’s finances, as well as your own income.

Though accountancy fees might feel like an extra expense, it could pay you back in the long run with their support on your money matters. Countingup makes it easy for your accountant to link to your account, so they can help manage your finances without delays. Are you thinking of a career in bookkeeping, accountancy or finance but not sure if you are ready for AAT Level 2?

Getting Started

There are two different types of accounts you can use; these are single-entry and double-entry bookkeeping systems. Look into the price, features, customer support, reviews, user-friendly interface, and everything before selecting one for your business. Luckily, there are a wide range of software providers available that can help, offering various services and tools. Our blog is regularly updated to provide useful resources and knowledge of happenings in the accountancy world.

bookkeeping 101

Your bookkeeping will underpin your accounting, so decide at the start which method you will use. Traditional accounting records income and expenses at the date of the invoice. Cash accounting records them on the date when you actually receive or pay the money. Cash accounting reduces the risk of having to pay tax on money you haven’t yet received, but is only available if your turnover is £83,000 or less. For example, bank feeds will connect your records and bank account, pulling transactions through into your bookkeeping so that you don’t need to enter them manually.

How to register as a sole trader

If you outsource your accounting function, bookkeeping and payroll can usually be included as part of the service. Having a comprehensive finance function can put your mind at rest, save you time, and enable your business to grow as fast as you want it to. In fact, bookkeeping is a small but vital part of the overall accounting function. Good and dependable bookkeeping is an essential to make accurate income tax returns. Without dependable financial records your business might end up paying more tax.

If you have other sole trader business activities we recommend you manage this under a unique QuickFile account. We will create your new landlord account with a set of nominal codes suited for property management. This will include codes to cover such things as rent payments, surcharges, late payment charges and tenant deposits.

In the long run, if you are planning to do all your bookkeeping yourself, this may save you time and money. Learn how to record purchase invoices, run accounts payable ledger, file supplier invoices and manage your cash flow. Credit control is an essential part of any small business; learn how to request money from customers. Good credit control systems will help to improve the cash flow of your business. To expand your business, your customers need to pay you, and you need a clear customer payment policy.