People often ask us what is the difference between accounting and bookkeeping? Put simply, while bookkeeping and accounting share common goals, they each make up a different stage of the financial cycle. Bookkeeping is the process of recording daily transactions in a consistent way, and can be carried out by any well-organised and competent person. So in the debate, which came first ‘the chicken or the egg’, in this case it’s bookkeeping which comes first, followed by accounting.
- Recording financial transactions;
- Posting debits and credits;
- Producing invoices.
Maintaining a general ledger is one of the main components of bookkeeping. The general ledger is a basic document where a bookkeeper records the amounts from sale and expense receipts. A general ledger can be created with specialist software, a computer spreadsheet, or simply a lined sheet of paper. The complexity of a bookkeeping system often depends on the the size of the business and the number of transactions that are completed daily, weekly, and monthly. At HTB we use SAGE accountancy software for bookkeeping purposes.
For many small or medium sized enterprises they simply do not have the internal resources for bookkeeping, and therefore outsource it to us. With these clients, our first step is to gain a full understanding of their business, we then tailor our approach to ensure the business receives the exact bookkeeping service they require.
Besides your core bookkeeping, HTB Chartered Accountants can also maintain your VAT records and take on short-term projects to relieve your staff of any temporary overload.
Another element of our bookkeeping service which we can provide to our clients is the preparation of your management accounts. Management accounts are an important performance management tool which are vital to the continued success of your business, so it is essential that they are kept up-to-date, something that businesses may struggle to find the time to do.
HTB can manage and interpret your Management Accounts on an on-going basis, as a singular service, or combined with other elements such as looking after a company’s general bookkeeping. We will discuss your requirements and provide tailored information and constructive advice on a regular basis, allowing you to act decisively and quickly throughout the year.