Bookkeeping for beginners doesn’t need to be a headache. In this blog, we’ve listed six basic yet valuable concepts to help you get started – from how you can fill in your records, accessible bookkeeping practices you should know, some handy tips on learning bookkeeping at home, and so much more.
Don’t have an accounting degree or a bookkeeping qualification? No problem. Here are the basic concepts you can learn to get started right away to do the books like a pro.
The first concept to get you started as a beginner is to know how you’ll complete your records. Typically, there are three popular options:
As mentioned earlier, you don’t need formal degrees or qualifications for doing the books. Still, here are the main options available.
There’s a little bit of learning involved that will make getting to grips with bookkeeping much easier in the long run. To help, we’ve listed the most basic types of bookkeeping you should know below.
For any beginner, bookkeeping can seem overwhelming, but it doesn’t need to be. You’ll start on the right foot by following these accessible yet vital bookkeeping practices.
There’s no denying that there are new terms and phrases you’ll come across from balance sheets to income statements. In practice, they’re pretty easy to understand once the words are broken down into much simpler definitions.
Although we can’t possibly list them all here, here are five of the most popular bookkeeping terms you should understand.
This is just scratching the surface. There are plenty of additional terms and phrases that will help you get started. You’ll benefit from bookmarking this glossary full of bookkeeping terms (no confusing jargon, though) that we’ll regularly update.
You don’t need to search for the cheapest bookkeeper around to get started, even if you’re a complete newbie. You work hard for your money, so the last thing you want is to give a big chunk to the taxman and then another hefty slice to a bookkeeper for tasks you can do by yourself.
To get started, here are some valuable tips on how you can learn bookkeeping at home.
All of these are great place to start for any beginner. However, as simple as it might seem on paper, you must recognise when the beast becomes too big. When this is the case, you should know to pick the right time to hand things over to a professional.
Now that you have plenty of helpful information to get started as a beginner, it’s probably the perfect time to make the process even simpler by using your very own checklist…
Do Bookkeeping the Right Way With a Bookkeeping Checklist
All of the points we’ve mentioned are all great basic ways to get you started, but there’s more to know about how to manage everything as you go along.
The dictionary definition of bookkeeping is defined as “the skill or occupation of maintaining accurate records of business transactions.”
In simple terms, bookkeeping is recording and organising financial data.
When it comes to accounting, the dictionary states accounting as “the skill or practice of maintaining and auditing accounts and preparing reports on the assets, liabilities etc. of a business.”
A bookkeeper is someone who will accurately record the financial data of a business. The primary purpose is to ensure that every entry is correct daily while keeping a log of all the books’ transactions.
By doing this, a bookkeeper can record and calculate income and expenses, make bank transactions, create sales invoices and raise purchase invoices.
We’ve tried to make things super simple to understand. But if there’s ever any term you’re slightly unsure of, and you need a quick definition, then head over to and bookmark this glossary blog where we’re regularly adding bookkeeping and accounting terms.
Bookkeepers also make sure that the accounts of a business balance. They can explain crucial financial information to business owners and make these reports make sense based on this information.
Some other bookkeepers’ responsibilities include providing information in report formats, creating and updating daybooks, analysis reports and debtor reports.
On the other hand, accounts are mainly responsible for generally overseeing accounts and producing financial statements and tax returns that comply with the law.
Accountants need to have expert knowledge in financial laws and ethical issues as part of their role involves understanding data and providing financial advice that can affect a business.
There are different types of accountants – some that work for public accounting firms and handle multiple businesses, while others might just focus on one. An accountant will adjust the entries made by bookkeepers at the end of each financial period. They do this by preparing to change journal entries and produce documents like profit and loss and balance sheet reports.
After assessing the findings, accountants help businesses make informed decisions.
We can’t speak for every bookkeeper or accountant on the planet, but there are some typical duties that each role does, making them so different.
What’s important to know, though, is that some tasks bookkeepers and accountants do can vary between businesses. Especially in smaller firms, bookkeepers might do some essential accounting duties as there’s sometimes a bit of an overlap.
The roles of accountants and bookkeepers vary from business to business. However, now you know that although the two often confuse, they’re pretty different.
Even though it sounds like bookkeeping is a challenge, it’s pretty simple to do once you’re using digital software. That’s something you’re probably not going to be able to avoid when the Making Tax Digital deadline is here. Still, there’s software available that makes it easier than ever to manage your books and avoid the hassle of endless paperwork.
It’s completely normal to be curious about Making Tax Digital and have plenty of questions. If anything, it’s been introduced by the government to make everything much easier for you – but there’s still a lot more to know.
Guest post by : team Form -
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