Learn Connect

5.1. Bookkeeping and Finance in Business

In any business, your financial systems are detrimental to its success. Having records of all transactions are not only a requirement of entrepreneurship but also a great way to keep track of how your business is developing and the profits you are making.

Should you hire an accountant to help?

Keeping your finances and accounts in order is of paramount importance and deciding whether or not you should find an accountant to help you. Below are a list of pros and cons to doing you finances yourself or asking an accountant to help:

Do the bookkeeping yourself

Advantages

Disadvantages

You have a full understanding of the finances relating to your business.

It can be very time consuming.

It is cheaper to do it yourself than to hire someone to help.

It can be confusing if you are unaware of all the systems and specifics you need to record and/or calculate.

You are in control of each aspect of your business.

 

Find an Accountant to help

Advantages

Disadvantages

Someone with expert knowledge will be helping you to keep your business’ finances in order.

You may not have the opportunity to learn how to do these finance systems yourself.

Gives you more time to focus on the other aspects of your business.

You may not have a full overview/understanding of your financial state.

Basic record keeping templates

There are numerous resources online and in libraries which can help you to set up your own bookkeeping records. Check out the website below which includes several different systems and styles to choose from:

https://www.businessaccountingbasics.co.uk/excel-bookkeeping-templates/

Each of the templates focus on a different financial aspect, including invoices, profit and loss, petty cash, mileage logs, cash flow forecasts etc.

For a more complicated bookkeeping systems, including currency exchanges and other aspects relating to internationalised small and medium businesses, there are more detailed systems such as QuickBooks (https://quickbooks.intuit.com/uk/).

To help you get started!

To help you get started with your bookkeeping, we have created a simple template to help you keep track of your incomings and outgoings, with a formula to work out totals and an overall balance. Below are a set of screenshots with hints and tips on how to fill in this template:

From this incomings sheet, you will be able to see exactly how much each client paid you and the total income from your business. This table also indicates when there is dispute between the amount you were intending to receive and the actual payment. You can easily spot these by looking at the balance column.

The same format applies for the outgoings excel sheet: 

When you have included all of your incomings and outgoings, the excel will automatically tell you your business balance, taking into account everything that has been paid and what has received:

Download your editable version

References

https://www.businessaccountingbasics.co.uk/excel-bookkeeping-templates/

https://quickbooks.intuit.com/uk/

Unit revision

Go To Test