Double-entry bookkeeping for UK businessesHow double-entry bookkeeping works: debits and credits, the accounting equation, the five kinds of account and worked journal entries for common transactions.How to structure a chart of accountsHow to number and group a chart of accounts for a UK company or sole trader so it maps to the Companies Act formats, the SA103F and the VAT return.Bank reconciliation explainedWhat a bank reconciliation is, the differences it finds, a worked example from cash book to statement, and how often to reconcile each bank account.Accruals and prepayments with worked journalsHow to post accruals, prepayments, accrued income and deferred income at a period end, with worked journal entries and the reversal the next month.Depreciation methods under FRS 102 and FRS 105Straight-line, reducing balance and units of production depreciation, what FRS 102 and FRS 105 require, worked figures, and why tax uses capital allowances.The trial balance explainedWhat a trial balance is, how it is extracted and used to prepare accounts, the errors it reveals and the errors it cannot, with a worked example.Suspense accounts and how to clear themWhat a suspense account is, the errors that put entries there, how to clear suspense with correcting journals, and why it must be nil at the year end.Directors' loan accountsWhat goes through a directors' loan account, s455 tax at 35.75% on overdrawn balances, benefit in kind over £10,000, the official rate and disclosure.How long to keep business recordsHow long companies, sole traders, VAT-registered businesses and employers must keep records, what counts as a record, and the Making Tax Digital rules.Cash basis and accruals basis for sole tradersCash basis has been the default for sole traders and partnerships since 2024-25 with no turnover limit. Who is excluded, opting out, interest and losses.
Bookkeeping
Bookkeeping for small businesses and the people who keep their books: double entry, the chart of accounts, bank reconciliation, accruals and prepayments, depreciation, the trial balance, suspense accounts, directors' loan accounts, how long to keep records, and the cash basis.