Frequently Asked Questions

Keeping accurate and up-to-date financial information is one of the most important factors in running a successful business. Below are some of the questions we are most often asked about bookkeeping services.

What is bookkeeping?

Bookkeeping is the process of recording and organising the financial transactions of a business.

This includes tasks such as:

Recording income and expenses
Reconciling bank transactions
Maintaining organised financial records
Preparing financial information for accountants

Bookkeeping is not only a legal requirement for businesses, but it also provides clear and accurate financial information to help you understand and manage your business effectively.

Where are you located?

M&K Bookkeeping is based in Rochester, Kent, and we work with businesses throughout the Medway towns and surrounding areas.

We are also able to provide remote bookkeeping services, allowing us to support clients across the UK using secure digital systems.

What is the difference between an accountant and bookkeeper?

A bookkeeper manages the day-to-day financial records of a business. This includes recording transactions, organising receipts and invoices, and maintaining accurate financial data.

An accountant uses the financial records prepared by the bookkeeper to analyse, interpret and report on the financial performance of the business, often preparing year-end accounts and tax returns.

In simple terms, bookkeeping provides the foundation that accountants build upon.

Is outsourcing bookkeeping a good idea for small businesses?

Outsourcing bookkeeping can be a cost-effective option for many small businesses.

It allows business owners to focus on running their company while a qualified professional manages the financial records, helping ensure accuracy, organisation and compliance.

Why do I need a bookkeeper?

A professional bookkeeper can save you time, reduce stress and help keep your financial records accurate and organised.

Benefits of using a bookkeeper include:

More time to focus on running your business
Accurate and organised financial records
Reduced risk of errors or missed deadlines
Better understanding of your business finances
Peace of mind knowing your records are maintained professionally

In many cases, outsourcing bookkeeping can actually save businesses money in the long term.

How often will I need a bookkeeper?

The frequency of bookkeeping support depends on the size of your business and the number of financial transactions you have.

Some businesses require weekly or monthly bookkeeping, while others may only need periodic support.

We will discuss your needs during your initial consultation and create a bookkeeping solution that works best for your business.

What accounting software do you use?

We primarily work with Xero and Sage Accounting, which are widely used cloud accounting platforms.

However, we also have experience working with other systems including Brightpearl and SharpAx, and we are happy to work with software already used by your business.

Yes. Many of our clients choose to outsource their bookkeeping remotely.

Using cloud accounting software such as Xero, Sage, and Hubdoc, we can securely access financial records, receipts and bank transactions online.

This allows businesses to benefit from professional bookkeeping support without needing in-person meetings.

Do you offer remote bookkeeping services?

How much does bookkeeping cost?

The cost of bookkeeping depends on factors such as:

The size of the business
The number of transactions
The level of bookkeeping support required
Whether services are weekly, monthly or occasional

At M&K Bookkeeping, we offer transparent pricing and tailor our services to suit the needs of each business.

What is Making Tax Digital (MTD)?

Making Tax Digital (MTD) is a government initiative introduced by HMRC to modernise the UK tax system.

Under Making Tax Digital for Income Tax, many businesses will need to keep digital financial records and submit information to HMRC using compatible software.

Making Tax Digital for Income Tax is currently planned to begin from April 2026 for qualifying individuals.

M&K Bookkeeping can help businesses prepare for these changes by implementing digital bookkeeping systems.

How can a bookkeeper help with Making Tax Digital?

A bookkeeper can help businesses prepare for Making Tax Digital by setting up digital bookkeeping systems, maintaining accurate financial records and ensuring compatible software is used.

Preparing early helps businesses transition smoothly when the new requirements take effect.

What income counts towards the £50,000 MTD threshold?

The £50,000 threshold for Making Tax Digital for Income Tax is based on the total gross income you receive from self-employment and property before expenses are deducted.

This means HMRC looks at the total income generated from these sources rather than your profit.

Income that counts towards the threshold includes:

Income from self-employment or sole trader businesses
Income from rental properties
A combination of both self-employment and property income

For example:

A sole trader earning £50,000 or more in business income may fall within the scope of Making Tax Digital.
Someone earning £30,000 from self-employment and £25,000 from rental income would have a combined total of £55,000, which may also bring them within the rules.

From April 2026, individuals with qualifying income over £50,000 will need to keep digital financial records and submit regular updates to HMRC using compatible accounting software.

The threshold is currently expected to reduce to £30,000 from April 2027, meaning more businesses will eventually need to follow the new digital reporting requirements.

Because everyone’s situation is different, it can be helpful to speak with a bookkeeper or accountant to understand whether these changes apply to your business and what steps you may need to take.

M&K Bookkeeping can help businesses prepare early by setting up digital bookkeeping systems and ensuring records are maintained in a way that supports future reporting requirements.

What is GDPR?

The UK General Data Protection Regulation and the Data Protection Act 2018 set out the rules for how organisations handle personal data.

These regulations require businesses to ensure that personal data is:

Used fairly, lawfully and transparently
Collected for specific purposes
Accurate and kept up to date
Stored only for as long as necessary
Protected against unauthorised access or loss

At M&K Bookkeeping we take data protection seriously and follow strict procedures to ensure client information is handled securely.