Tracking income and expenses

Tracking income and expenses is a vital part of accounting that demands diligence and attention to detail. Accurate accounting helps you manage cash flow effectively. This information is essential for tax purposes when filing returns with HMRC. It is crucial to maintain detailed records of all money coming into and going out of your business throughout the year.

In addition to recording daily transactions, it is important to keep separate records of large one-off payments, such as taxes or loan repayments. Having this information readily accessible simplifies account reconciliation and helps identify discrepancies or errors before they escalate into significant financial issues.

Reconciliation involves comparing bank statements with entries in your ledgers to ensure they match accurately. This process helps detect any discrepancies or errors before they develop into larger financial problems. To avoid reconciliation issues, contact Foundry Accounting. We will assist you in resolving your accounting challenges.