A question that gets asked an awful lot especially on the internet is ‘What is Bookkeeping?’ so let us explain.

Most business no matter how large or small will receive invoices from its suppliers and send out invoices to its customers, as well as obtain receipts for other purchases.

The job of a bookkeeper is to ensure that all records are collated and processed using an accounting software like Xero. Simply put, the bookkeeper will enter all supplier invoices, expenses (receipts) and raise or enter sales invoices.

Once that has been done a bookkeeper will reconcile the business’ bank and credit card account and make sure the petty cash agrees to the cash withdrawn and receipts provided.

There will often be occasions when after the bank has been reconciled the bookkeeper identifies that there are documents missing, usually supplier invoices. The bookkeeper should then let the business know what invoices are required for the accounting month to be finalised.

A good bookkeeper will then produce month end reports including a Trial Balance, Profit & Loss, Balance Sheet, Aged Debtors, Aged Creditors and as well management accounts including cash flow forecasts, sales forecasts, budgets and other bespoke reports needed by the business.

If you need help understanding any of the above or are looking for an ICB Bookkeeper please get in touch by calling 020 3633 1340, emailing or request a consultation via our website www.cainandbeer.com.