Practical guide
Starting a business: your first bookkeeping setup checklist
Set up a reliable way to record income, expenses and documents before transactions begin to build up.
1. Confirm the structure
Sole traders and companies have different responsibilities. See GOV.UK’s business setup guide.
2. Separate business money
A company’s finances must be separate from its owners. A separate account also helps sole traders.
3. Create a sales process
Decide how you will quote, invoice, number documents and follow up unpaid invoices.
4. Capture expenses
Save invoices and receipts promptly and add a clear description where needed.
5. Choose suitable software
Consider bank feeds, invoicing, receipt capture, bookkeeper access, VAT and MTD compatibility.
6. Use sensible categories
Set clear categories for sales, costs, overheads, assets, money introduced and money withdrawn.
7. Record dates
Keep tax references and Companies House information and list relevant deadlines.
8. Build a monthly routine
- Record sales and expenses.
- Attach documents.
- Reconcile accounts.
- Review unusual items.
- Check cash for bills and tax.
- Back up records.
9. Review after month one
Correct missing balances, duplicate imports or poor invoice numbering early.