The Bookkeeping Master

🚨Stop scrolling for a second🚨

If you are a bookkeeping or accounting student, or in practice, there are key things you must know:

✅ Double-entry. You must know your debits and credits. Even if you're using accounting software. The easiest way to learn this is the PEARLS acronym. This is covered here: https://youtu.be/Fm9BECuNbkw

✅ The accounting equation. You'll never fully understand the balance sheet, accounting, and double-entry until you know the accounting equation. Assets = Liabilities + Equity. What does this actually mean, though? It means that when total assets increase, liabilities or equity must also increase. If the total assets fall, liabilities or equity must also fall. An example of this is paying off a loan. Assets (cash account) will decrease, and liabilities (loan account) will also decrease. Paying expenses, making sales, drawings, and all other transactions fall within the accounting equation. Learn more: https://youtu.be/nTAhyW9eF0w

✅ Accounting is amazing. It is the language of business. Understanding finance and accounting is a brilliant skill that can open many doors. If you love accounting, it will show. This will help with employment opportunities, job satisfaction, and uplift those around you. If you're not loving accounting, then find an area within finance and accounting that you do love. The industry is massive. I'm confident there is something for you.

‼ Here's the harsh truth ‼

If you don't know what you're doing, it will eventually catch up with you. Guessing or winging it in bookkeeping, accounting, or taxation is not going to end well. Believe me.

This is what you must do:

✅ Educate yourself. Learn as much as you can from reliable resources and professional educators. Fill your gaps. Learn it so many times that it becomes second nature. Here are the key resources:

1️⃣ Learn for free on my website. No registration is required. You can learn everything from the essentials, like double-entry bookkeeping, to preparing year-end accounts: https://www.freebookkeepingaccounting.com/free-bookkeeping-accounting-courses

2️⃣ If your needs are more specific or you prefer one-to-one support, then get a mentor: https://www.freebookkeepingaccounting.com/services/accounting-mentorship

3️⃣ Consider a bookkeeping, accounting or taxation qualification. There are many to choose from.

❌ Don't rely on your friend at the pub or think you can do your tax return without any training. This usually always ends badly and can be costly.

✅ If you're not willing to put in the time, money, and energy to learn your debits and credits, reconcile bank accounts, or learn how to effectively save tax, then consider outsourcing. This is the way. I'm taking new clients now: https://www.smaccountinguk.com/

❌ Don't bury your head in the sand and try to forget about it. The bookkeeping must be done. The tax must be calculated and paid. There is no escape 😱

Question time!🧐

What is your go-to accounting break treat?

1️⃣ A hot drink (tea, coffee, etc).
2️⃣ A cold drink (water, Coke, etc).
3️⃣ Something edible (biscuits, bars, nuts, etc).
4️⃣ Fruit

Let me know below!

New video!

BookkeepingMaster 1 like. "Learn Sage Accounting in 10 minutes!"

MTD Income Tax!

What do you think of HMRC's shift toward quarterly self-assessment and MTD-compliant software?

1️⃣ I love it!
2️⃣ I hate it 🤬
3️⃣ I'm indifferent
4️⃣What's MTD income tax? 😶

If you need assistance, HMRC offers free videos here: https://www.youtube.com/watch?v=nQP8hfdn2no&list=PL8EcnheDt1ziVCgfY3Z1-Q6wz2c6sec-x

If you would rather I deal with it, get in touch.

I've been busy! 🔥

After a few weeks of being snowed under with the start of the tax year, I have some time to get back on social media and post content. I should have some new videos by the end of the week.

As it's the start of the tax year, here are some key things to consider:

1️⃣ Tax planning. If you feel you're paying too much tax, then get advice. Running payroll, claiming more expenses and allowances, charging your company interest, and getting an electric vehicle through your business are some great ways to pay less tax. If you're interested, message me or email me: [email protected]

2️⃣ Get organised. If possible, file your self-assessment tax return now. This will give you 9 months to pay your income tax bill, rather than saving it until January and rushing to pay after Christmas. Also, consider getting a bookkeeper. I offer bookkeeping services.

3️⃣ Training and qualifications. April is a great time for resolutions. If you've been putting off that qualification, then get it! If you need training: https://www.freebookkeepingaccounting.com/accounting-mentor-program

Have a good week, everyone ❤

Question time! 🧐

Which is the correct double-entry for the cash purchase of a new computer?

1️⃣ Debit Software, Credit Savings Account
2️⃣ Debit Computer Expense, Debit Bank Account
3️⃣ Debit Bank Account, Credit Computer Expense
4️⃣ Debit Computer Asset, Credit Bank Account