Bookkeeping Services

What does a bookkeeper actually do?

They record day-to-day transactions: bank reconciliation, invoices, bills, and VAT coding. They produce monthly reports so you know what you made. They do not sign statutory accounts or give tax advice unless they are also a qualified accountant.

On cloud software the job is mostly exception handling — unmatched payments, receipts in photos, supplier bills. Ask who codes the transactions: a named bookkeeper, offshore processing, or the partner you met once.

Do I need a bookkeeper as well as an accountant?

Hire a bookkeeper if bank feeds, invoices and VAT coding eat your week. Skip a separate bookkeeper if your accountant already includes monthly books in the package — paying twice for the same ledger is the usual waste. Many UK firms sell both under one fee.

Bookkeepers record day-to-day transactions; accountants prepare statutory accounts, tax returns and advice. The split is real, but the invoice often is not — look at the engagement letter, not the job title. MTD for VAT already requires digital records; MTD for Income Tax from April 2026 does the same for qualifying sole traders and landlords.

How much do UK bookkeeping services cost?

UK bookkeeping typically costs £25–£75 per month on top of, or inside, a core accountancy package on our editorial benchmarks. Volume, VAT and payroll push the fee up. Confirm whether software is included before you compare headlines.

The low end is a sole trader with one bank feed and no VAT. The high end is a busy limited company with receipts arriving in photos. Transaction volume is the honest driver — ask how they price extra accounts or a second entity.

What software should I use for bookkeeping?

Use HMRC-recognised cloud software if you are VAT-registered or heading into MTD for Income Tax — Xero, QuickBooks, FreeAgent or Sage are the usual UK set. Pick the package your accountant already lives in. Switching software to chase a directory filter is usually a waste.

Partner pricing on the licence is a real saving when it is in the letter. Ask who owns the organisation if you leave. Spreadsheets can work with bridging software for MTD; they still need a human who reconciles.

What should I look for in a bookkeeping quote?

Named software, how many bank accounts, whether VAT coding is included, and who reviews the month. A cheap quote that excludes VAT is not cheap if you are registered. Cut-off dates matter — books closed ten days after month-end are more useful than books closed in June.

AAT bookkeepers are trained for this work; they are not automatically tax advisers. If you also need accounts and a CT600, buy a combined package.

• Usually in: bank rec, invoices, monthly P&L
• Often extra: VAT return, payroll, receipt capture apps, catch-up years

Can I do my own bookkeeping?

Yes if you will reconcile every week and you understand VAT codes. No if the books only exist in January. MTD does not forgive a year of uncoded transactions. A catch-up fee for a messy year often exceeds a year of monthly bookkeeping.

Owners who invoice on the phone and never open Xero are the ones who need a bookkeeper. Owners who already live in the software need an accountant at year end, not a second coder.

How should I choose a bookkeeper?

Match software first, then check AAT or a professional-body register if they also file accounts. Compare three quotes on transaction volume, not a mystery “from” price. Ask for a named person and a month-end timetable.

Offshore processing is common and not automatically bad — it is bad when nobody in the UK will take a call. If you need sector knowledge (CIS, hospitality tronc, ecommerce marketplaces), say so.

1. Name the software you will actually use
2. Count bank accounts, sales channels and whether you are VAT-registered
3. Ask who codes vs who reviews
4. Prefer a combined books-and-accounts letter if you also need a year end