Bookkeeping course

Free bookkeeping course for UK small businesses

A practical UK bookkeeping course for beginners, built around double-entry, VAT, payroll postings, bank reconciliation and the records a small business actually keeps.

Open salary calculator Tools online accounting course UK

Updated: 2026-07-29

Course progress

Modules

1. Bookkeeping foundations

Set up the bookkeeping mindset: evidence first, repeatable records and useful reports.

Bookkeeping foundations18 min

2. Debits and credits

Use the accounting equation to decide what is debited and credited.

Debits and credits22 min

3. Source documents and journals

Turn invoices, receipts, bills and bank feeds into journal entries.

Source documents and journals26 min

4. Bank reconciliation and adjustments

Find missing items, timing differences and common bookkeeping errors.

Bank reconciliation and adjustments18 min

5. Chart of accounts and statements

Read the chart of accounts and connect it to financial statements.

Chart of accounts and statements22 min

6. Tax and invoicing

Record invoices and indirect tax without losing the audit trail.

Tax and invoicing26 min

7. Payroll bookkeeping

Post gross pay, deductions, employer costs and net pay clearly.

Payroll bookkeeping18 min

8. Year-end records

Prepare records for closing, filing and handoff to an accountant.

Year-end records22 min

9. Workflow and controls

Build a monthly routine that reduces errors and protects cash.

Workflow and controls26 min

10. Capstone workflow

Complete a small-business bookkeeping cycle from document to report.

Capstone workflow28 min

foundations

Bookkeeping foundations

Set up the bookkeeping mindset: evidence first, repeatable records and useful reports.

Bookkeeping foundations

Bookkeeping starts with evidence. In UK, keep invoices, receipts, payroll reports and bank records together so each entry can be traced back to a real event.

Set up the bookkeeping mindset: evidence first, repeatable records and useful reports.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Bookkeeping foundations

A new UK limited company or sole trader receives owner funding and buys basic equipment before the first customer invoice.

Account	Debit	Credit	Note
Bank	Owner contribution		Opening funds
Equipment	Purchase cost		Asset created
Owner equity		Owner contribution	Source of funds

This records what the business owns and where the funding came from.

HM Revenue & Customs: HMRC VAT guide

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this foundations transaction?

Find and keep the source documentPost a round estimateIgnore payment status

double-entry

Debits and credits

Use the accounting equation to decide what is debited and credited.

Debits and credits

The accounting equation is assets = liabilities + equity. A limited company or sole trader uses debits and credits to keep that equation balanced after every transaction.

Use the accounting equation to decide what is debited and credited.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Debits and credits

The business buys office supplies on supplier credit and checks that both sides of the entry balance.

Account	Debit	Credit	Note
Office supplies	Cost of supplies		Expense recognised
Accounts payable		Supplier invoice	Amount still owed

The debit records the cost and the credit records the obligation to the supplier.

HM Revenue & Customs: PAYE guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this double-entry transaction?

Find and keep the source documentPost a round estimateIgnore payment status

source-documents

Source documents and journals

Turn invoices, receipts, bills and bank feeds into journal entries.

Source documents and journals

A source document becomes a journal entry only after you know the date, supplier or customer, amount, VAT treatment and payment status.

Turn invoices, receipts, bills and bank feeds into journal entries.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Source documents and journals

A supplier invoice arrives with VAT details, a due date and supplier information; the bookkeeper codes it before payment.

Account	Debit	Credit	Note
Software expense	Supplier net amount		Coded from invoice
Tax control account	Recoverable tax		Tax evidence retained
Accounts payable		Supplier gross amount	Due to supplier

The supplier invoice is the evidence for amount, tax treatment and due date.

Companies House: Companies House accounts guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this source-documents transaction?

Find and keep the source documentPost a round estimateIgnore payment status

reconciliation

Bank reconciliation and adjustments

Find missing items, timing differences and common bookkeeping errors.

Bank reconciliation and adjustments

Reconciliation compares the ledger with the bank statement. Timing differences are normal; unexplained differences need a corrected entry or a missing document.

Find missing items, timing differences and common bookkeeping errors.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Bank reconciliation and adjustments

The bank statement shows a card processing fee and a customer payment that were not yet matched in the ledger.

Account	Debit	Credit	Note
Bank charges	Card fee		Shown on bank statement
Bank		Card fee	Ledger adjusted

The ledger is adjusted only when the bank item is identified and supported.

HM Revenue & Customs: HMRC VAT guide

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this reconciliation transaction?

Find and keep the source documentPost a round estimateIgnore payment status

statements

Chart of accounts and statements

Read the chart of accounts and connect it to financial statements.

Chart of accounts and statements

The chart of accounts groups cash, receivables, payables, revenue, expenses and tax accounts so the profit and loss and balance sheet can be produced quickly.

Read the chart of accounts and connect it to financial statements.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Chart of accounts and statements

At month end, sales, expenses, customer balances and supplier balances are mapped to the financial statements.

Account	Debit	Credit	Note
Revenue		Monthly sales	Income statement
Operating expenses	Monthly costs		Income statement
Accounts receivable	Customer balance		Balance sheet

Statement mapping helps the owner see performance and financial position separately.

HM Revenue & Customs: PAYE guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this statements transaction?

Find and keep the source documentPost a round estimateIgnore payment status

tax-and-invoicing

Tax and invoicing

Record invoices and indirect tax without losing the audit trail.

Tax and invoicing

VAT bookkeeping is not just a tax calculation. It affects invoice wording, control accounts, payment dates and the evidence retained for review.

Record invoices and indirect tax without losing the audit trail.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Tax and invoicing

The business issues an invoice for 1,000 GBP plus VAT and separates net revenue from tax payable.

Account	Debit	Credit	Note
Accounts receivable	Gross invoice		Customer balance
Revenue		Net sale	Income before tax
Tax control account		Tax amount	Tax payable or deductible

The tax element is not revenue; it is tracked in a control account.

Companies House: Companies House accounts guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this tax-and-invoicing transaction?

Find and keep the source documentPost a round estimateIgnore payment status

payroll

Payroll bookkeeping

Post gross pay, deductions, employer costs and net pay clearly.

Payroll bookkeeping

PAYE payroll creates bookkeeping entries even when the salary calculation is prepared elsewhere. The books still need gross pay, deductions, employer costs and net pay.

Post gross pay, deductions, employer costs and net pay clearly.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Payroll bookkeeping

Monthly payroll is prepared with gross pay, deductions, employer costs and the net transfer under UK PAYE, National Insurance and pension payroll.

Account	Debit	Credit	Note
Payroll expense	Gross pay plus employer costs		Cost of employment
Payroll deductions payable		Tax and employee deductions	Amounts to remit
Bank		Net pay transfer	Paid to employee

Payroll bookkeeping separates the business cost, amounts owed to authorities and net cash paid.

HM Revenue & Customs: PAYE and payroll for employers

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this payroll transaction?

Find and keep the source documentPost a round estimateIgnore payment status

year-end

Year-end records

Prepare records for closing, filing and handoff to an accountant.

Year-end records

Year-end bookkeeping is easier when every month has been reconciled. The goal is to hand over clean balances, supporting documents and a clear list of open questions.

Prepare records for closing, filing and handoff to an accountant.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Year-end records

Before year-end, the business records an accrual and checks that open customer and supplier balances are supported.

Account	Debit	Credit	Note
Accrued expenses	Year-end estimate		Cost belongs to this year
Accruals payable		Year-end accrual	Liability to settle later

The accrual records a cost in the correct period even if cash moves later.

HM Revenue & Customs: PAYE guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this year-end transaction?

Find and keep the source documentPost a round estimateIgnore payment status

workflow-controls

Workflow and controls

Build a monthly routine that reduces errors and protects cash.

Workflow and controls

A good workflow separates capture, coding, review and reporting. That reduces duplicated expenses, missed invoices and cash surprises.

Build a monthly routine that reduces errors and protects cash.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Workflow and controls

One person enters supplier bills while another reviews tax codes, approvals and unmatched bank items.

Account	Debit	Credit	Note
Supplier expense	Approved net cost		Reviewed before posting
Tax control account	Recoverable tax		Code checked
Accounts payable		Approved gross bill	Payment still controlled

Review controls reduce duplicate bills, wrong tax codes and unauthorised payments.

Companies House: Companies House accounts guidance

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this workflow-controls transaction?

Find and keep the source documentPost a round estimateIgnore payment status

capstone

Capstone workflow

Complete a small-business bookkeeping cycle from document to report.

Capstone workflow

The capstone combines a sale, an expense, payroll, VAT, reconciliation and a simple report for one small business month.

Complete a small-business bookkeeping cycle from document to report.
Separate the business amount, VAT and payment status.
Reconcile the bank before relying on the report.

Capstone workflow

The month includes one sale, one supplier bill, one payroll run, a VAT review and a bank reconciliation.

Account	Debit	Note
Accounts receivable	Gross sale	Customer balance
Supplier expense	Approved cost	Supplier document
Payroll expense	Gross payroll	Payroll report

The capstone ties documents, tax, payroll, bank and reporting into one monthly close.

HM Revenue & Customs: HMRC VAT guide

Open salary calculatorPAYE payroll

Module quiz

1. What is the best first step before posting this capstone transaction?

Find and keep the source documentPost a round estimateIgnore payment status

Official references

HMRC VAT guide
HM Revenue & Customs - 2026-07-29
PAYE guidance
HM Revenue & Customs - 2026-07-29
Companies House accounts guidance
Companies House - 2026-07-29

Bookkeeping course FAQ

Is this bookkeeping course really free?

Yes. The lessons, worked examples and quizzes on this page are free to use and designed for self-paced learning.

Do I need accounting software?

No. The course is software-neutral. You can apply the workflow in a spreadsheet, ledger, or bookkeeping app.

Is this the same as becoming a certified bookkeeper?

No. It teaches practical bookkeeping foundations and can help you prepare for formal training, but it is not a regulated qualification.

How does payroll connect to bookkeeping?

Payroll creates journal entries for gross pay, deductions, employer costs and net wages. The payroll module links those entries to the local salary calculator.