In summary, this is what the bookkeeper does:
Step 1 – Invoices
- Raise the sales invoices
- Record the sales invoices in the accounts (both the sale and the debt owed FROM the customer)
- Give the purchase invoice / expense receipt a reference number
- Record the purchase invoices in the accounts (both the expenditure and the debt owed TO the supplier)
Step 2 – Payments and receipts
- Record the customer receipt (both the bank receipt and the clearing of the customer debt)
- Record the suppler payment (both the bank payment and the payment if the supplier debt)
Step 3 – Reconcile the bank to the accounts
- Go through all the bank receipts and bank payments in the account and tick this off against the bank account (this is called the bank reconciliation)
Step 4 – Review list of customers and suppliers
- Go through the list of customers who owe money to ensure they are correct
- Go through the list of suppliers who you owe money to ensure they are correct
Step 5 – Review your profit and loss account and balance sheet for any errors
Step 6 – (If VAT registered) complete the VAT returns
