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What is Double Entry Bookkeeping

Double Entry Bookkeeping is an accounting system where every transaction has two equal and opposite elements – a debit to one account and a credit to another. For example, if a restaurant buys a new oven for £1,000, they debit their equipment expense account for £1,000 and credit their cash account for £1,000.

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This is because their equipment assets are now worth £1,000 more, and they have £1,000 less in cash.

What is single-entry bookkeeping?

In single-entry bookkeeping, you only record your income and expenses. For instance, you buy a new oven for £1,000, and it is added to your expenses – there is no crediting involved.

Disadvantages of single-entry bookkeeping

The disadvantage of this is that, of course, this only gives a one-sided picture of transactions within a business.

How can double entry bookkeeping help?

Double entry bookkeeping allows you to have a more complete financial picture as you have two accounts to compare, making it a wholly more attractive proposition to investors, banks and buyers.

Advantages of double entry bookkeeping

Another advantage double entry bookkeeping has is the ability to spot errors. In double entry, debits and credits must always balance each other out – if they don’t, you know there is an error somewhere. This makes it easy to ensure incorrect figures are not transferred into other documents or financial statements, enhancing the overall profitability of your business.

Avoid balancing errors

Balancing errors are a given in business – no matter how big or small your company. It is therefore incredibly important for any business to have someone responsible for their double entry accounting. Hiring your own double entry bookkeeper will eradicate the stress bestowed onto you as a business owner, as you will have full peace of mind that your accounts are balanced at all times.

Potential investment advantages

Not only this but it will make you far more lucrative as a business proposition to any potential partners or deals that you might pursue in the future, having clean accounts that have been properly managed and maintained.

Choose Sandwell Accountancy Services

Here at Sandwell Accountancy Services, we have a selection of hugely experienced professional accountants who are best suited to dealing with double entry accounts in the West Midlands. As certified, trusted local accountants, we provide our clients with a key contact to deal with all your queries and questions. We offer our clients a truly personal touch along with accurate, expert advice and a dedicated contact person who will always respond in a timely manner to your queries.

We're a premier accounting firm

With a lifespan of almost 50 years, we have built a reputation as one of the region’s premier accounting firms due to this reliable, professional service, but what’s more – we believe quality shouldn’t cost the earth. Our affordable rates make us an ideal solution for you and your business.

What are you waiting for? Get in touch with the team now on 01384 568 197 to discuss your requirements, or email enquiries@sas-accounts.co.uk.

We are ready and willing to help.

Talk to us today about how our services can simplify your book-keeping.
Give us a call on 01384 569 197.

Our services

Bookkeeping At Sandwell Accountancy Services, we provide accurate and reliable bookkeeping services to businesses and private individuals in the Black Country, Birmingham and across the West Midlands. Accounts At Sandwell Accountancy Services, we prepare the accounts for both sole traders and partnerships, including other incorporated and unincorporated enterprises Company Secretarial Duties At Sandwell Accountancy Services, we know that you get busy as a business owner. Company Taxation If you run a limited company, corporation tax is unavoidable - but the surprises don't have to be. We prepare your company tax return, work out what you owe, and make sure it's filed and paid on time, so HMRC stays quiet and your figures hold up. Self Assessment & Taxation Every business & private individual has to submit a tax return to declare profits and income to HMRC and declare any due tax. VAT Returns At Sandwell Accountancy Services, we know just how complicated VAT returns can be. Capital Gains Tax When you sell a property or another chargeable asset, Capital Gains Tax can take a big bite. We work out what's due, apply the reliefs you're entitled to, and file it correctly - so there are no surprises after the sale. Payroll, Pensions & P11Ds Do you need help ensuring your employee payments are managed in a timely and effective manner? Business Start-Ups & Company Formation At Sandwell Accountancy Services, we specialise in helping new businesses lay strong financial foundations. Rental Accounts Whether you let one flat or run a portfolio, we keep your rental accounts straight - recording income and expenses, claiming every allowable cost, and filing the returns HMRC expect, so your lettings stay profitable and compliant. MTD ITSA & Quarterly Accounts We keep your books straight all year, so your figures are current, your income tax is easy, and your year end is a formality rather than a scramble.

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