A limited company must always keep double-entry bookkeeping of its business operations. Completing financial statements is also mandatory. Although double-entry bookkeeping has a reputation for being difficult to understand, bookkeeping is actually not as complicated as it first appears!
The basic principle of double-entry bookkeeping is that every business transaction is recorded twice on the debit and credit sides. The records show where the money was spent and where it came from. In other words, credit is the account that is the source of money. Debit, on the other hand, functions as an object of money.
The entries must be made so that the debit and credit amounts are the same per entry. Income or expenditure occurs at the moment when the goods are handed over or received. That is, when a product or service is received, an expense is created, and income is created at the moment when the product or service is handed over.
In UKKO Limited Company, double-entry bookkeeping is done on a payment basis, whereby vouchers are included in the accounting based on their payment date. Just add expenses and income - we'll take care of the bookkeeping for you!