LESS CATCHING UP. MORE CONTROL.
A clearer picture of your money, every month.
You finish a busy month, open your banking app and wonder: who still owes me money, which bills are coming next, and is there enough left for tax?
A few regular checks make those questions much easier to answer. This guide is for small business owners in Luton and across the UK who want useful records without spending every evening on the books.
YOUR MONTHLY ROUTINE
Seven checks worth making time for
Choose a regular point each month, ideally after your bank statements are available. If you handle lots of transactions, do the recording weekly and use this routine as your monthly review.
Gather your sales, bills and receipts
Bring together invoices you sent, supplier bills, receipts, card payment reports and statements for every business bank account and credit card. Include cash sales and business costs paid personally.
A bank statement shows that money moved. A receipt or invoice helps explain what it was for. Save clear copies in one organised place, rather than leaving them in emails, pockets and WhatsApp chats.
Try this: Photograph a receipt when you receive it and attach it to the matching transaction in your accounting software.
Check every bank account against your records
Accountants call this bank reconciliation. It means checking that the transactions and closing balance in your books agree with your bank statement.
Look for missing payments, duplicate entries and transfers recorded as sales. Money moved between your own business accounts is not a new customer sale. A loan arriving in the bank is not sales income either.
Finish with: No unexplained difference between the statement and your records.
Record the full sale, not just the bank deposit
If customers pay by card or through a payment platform, the provider may take its fee before sending you the money. Recording only the amount that lands in your bank can hide both part of the sale and the fee.
Use the provider's settlement report to connect the customer's payment, any fee and the final deposit. Check refunds separately too.
A SIMPLE EXAMPLE
£1,200 paid. £1,170 received. What happened?
A customer pays £1,200. The payment provider keeps a £30 fee and deposits £1,170 into your bank.
Your records should explain all three amounts. The £1,170 bank deposit is not the full customer payment. VAT, if applicable, needs to be dealt with separately using the underlying sale and fee documents.
Illustrative figures only. Actual fees and VAT treatment depend on the transaction.Find out who still owes you money
Open your list of unpaid customer invoices. Check whether any have already been paid but not matched correctly. Then chase genuinely overdue amounts with a polite reminder and a copy of the invoice.
Also review unpaid supplier bills. Knowing what you owe is just as useful as knowing what is in the bank.
Useful habit: Keep a short list of overdue customers, amounts owed and the next follow-up date.
Separate business costs from personal spending
A payment made from the business account is not automatically a business expense. Flag personal items, mixed-use purchases and anything you do not recognise so they can be treated correctly.
If you run a limited company, its finances must be kept separate from your personal finances. Money you take out needs the right treatment. If you paid a genuine company cost yourself, keep the evidence and tell your accountant.
For sole traders, the recording rules differ, but keeping business transactions easy to identify will still save time.
Look ahead to tax, wages and other payments
Write down the payments due over the next four to eight weeks. Include suppliers, wages, rent, finance repayments and any tax payments. Ask your accountant for an up-to-date tax estimate rather than assuming your whole bank balance is available to spend.
If you are VAT registered, review the records behind the return and any unusual transactions. Most VAT-registered businesses must keep specified records digitally unless an exemption applies.
Keep it simple: A separate savings pot can help you set aside money for tax. It does not replace checking the actual amount due.
Read the numbers and make one decision
Once the records are up to date, compare sales and costs with last month. Ask what changed: did sales rise, did supplier costs increase, or are software subscriptions creeping up?
You do not need a complicated dashboard to start. Pick one useful action, such as following up a late payer, reviewing a recurring cost or adjusting next month's spending.
If you want a fuller picture, management accounts help explain business performance, while a cash flow forecast looks ahead at when money is expected to arrive and leave.
SAVE THIS FOR MONTH END
Your monthly bookkeeping checklist
- Sales invoices and cash takings recorded
- Supplier bills and receipts saved
- All bank accounts and credit cards checked
- Card payments, fees and refunds matched
- Overdue customer invoices followed up
- Personal spending and unclear items flagged
- Upcoming bills and tax payments reviewed
- One practical action agreed for next month
Keep a short question list for your bookkeeper or accountant. It is better to flag an unclear payment than to guess and forget about it.
QUESTIONS BUSINESS OWNERS ASK
Bookkeeping, without the jargon
What is the difference between bookkeeping and accounting?
Bookkeeping keeps the day-to-day records in order. Accounting uses those records to prepare accounts, work out tax and help you understand how the business is doing. The two work best together.
Can I do my own bookkeeping?
Yes, if you have the time, understand what needs recording and use a system that meets your requirements. A shared approach can work well: you upload receipts and raise invoices, while a bookkeeper checks the records. Agree who does what.
Does connecting Xero or QuickBooks do everything?
No. A bank feed brings transactions into the software, but someone still needs to check the purpose, match invoices and review VAT where relevant. Suggested categories can be wrong.
How much does a bookkeeper cost in Luton?
There is no single price that fits every business. The fee depends on transaction numbers, how often records need updating, VAT, payroll and whether there is a backlog. Ask for a written quote that explains what is included, who supplies the documents and what costs extra.
How long should a limited company keep its records?
Generally, six years from the end of the last company financial year they relate to. Some situations require longer. Sole traders and VAT records have their own rules, so check the guidance that applies to you.
BOOKKEEPING SUPPORT IN LUTON
Want your books to feel more manageable?
Wardown Accountancy supports businesses in Luton, Bedfordshire and remotely across the UK. We can discuss regular bookkeeping, a catch-up exercise or a shared approach using Xero or QuickBooks.
Book a free 30-minute call Explore bookkeeping and VAT support01582 353119 · hello@wardownaccountancy.co.uk
