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Bookkeeping in United Kingdom: how it runs
LedgerBPO provides outsourced bookkeeping services UK small businesses rely on: a named dedicated bookkeeper who categorises every transaction and reconciles each account inside your Xero, QuickBooks Online, Sage 50 or FreeAgent file. Books stay ready for VAT, Making Tax Digital and Companies House deadlines, reviewed by a second accountant every month.
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What it covers
LedgerBPO provides outsourced bookkeeping services UK small businesses rely on: a named dedicated bookkeeper who categorises every transaction and reconciles each account inside your Xero, QuickBooks Online, Sage 50 or FreeAgent file. Books stay ready for VAT, Making Tax Digital and Companies House deadlines, reviewed by a second accountant every month.
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What you get
One named bookkeeper, a backup and a team lead, in your software
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How it runs
Every transaction categorized and every account reconciled monthly
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What you see
Two-tier review before any report reaches you
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
What is different in United Kingdom
UK bookkeeping runs on its own calendar and rules. Making Tax Digital already applies to VAT-registered businesses, and MTD for income tax becomes mandatory on 6 April 2026 for sole traders and landlords with qualifying income above £50,000, dropping to £30,000 in April 2027 and £20,000 in April 2028. The VAT registration threshold sits at £90,000 of rolling turnover, so bookkeeping has to track it monthly rather than wait for year end. Xero leads the UK small business market, with QuickBooks Online, Sage 50 and FreeAgent close behind, so the file format your accountant expects is usually already decided. Our dedicated bookkeepers work UK business hours from our second office in Pakistan, so questions get answered inside your working day, not overnight.
UK rules that shape the work
Making Tax Digital
MTD for VAT already applies above the £90,000 registration threshold, and MTD for income tax self assessment becomes mandatory from 6 April 2026 for income over £50,000, then £30,000 in 2027 and £20,000 in 2028.
VAT registration threshold
We monitor your rolling twelve-month turnover against the £90,000 threshold so registration is never a surprise, and VAT coding is built into the monthly categorisation from the start.
Software most UK bookkeepers use
Xero is the most common platform for UK small businesses, and we also work in QuickBooks Online, Sage 50 and FreeAgent, plus Dext for receipt capture.
Data protection for a remote team
A UK GDPR data-processing agreement covers how your records are handled, and transfers to our second office in Pakistan are covered by an international data transfer agreement.
What's included
- Daily or weekly categorization of bank and card feed transactions
- Receipt and bill matching through Dext, Hubdoc or your inbox
- Customer invoice and vendor bill posting to the ledger
- Monthly bank, credit-card and loan reconciliations
- Payroll journal entries from Gusto, ADP or your payroll provider
- Sales-tax, VAT or GST liability tracking by period
- Fixed-asset additions and monthly depreciation entries
- Prepaid and accrual entries so months compare cleanly
- Class, location or tracking-category coding where you use it
- Monthly P&L and balance sheet with plain-English notes
- Year-end package handed to your CPA or accountant
- Weekly status note listing open questions and missing documents
Deliverables and KPIs
| Deliverable | KPI we report |
|---|---|
| Books categorised and reconciled | Ledger current within 5 UK business days of month end |
| VAT coding checked monthly | Every transaction coded to the right VAT rate before the return is drafted |
| Digital links maintained | No manual re-keying between bank feed, ledger and MTD software |
| Companies House ready file | Trial balance handed to your accountant ahead of the filing deadline |
UK software we work in
Pricing in GBP
Pricing depends on volume and scope. Get a custom quote within 1 business day. Quotes for United Kingdom clients are issued in GBP.
Security and compliance
- Read-only bank feeds where your bank supports them; we never move money
- MFA on every login, least-privilege access, and an access log per client
- NDA per engagement, background-checked staff, no paper and no local downloads
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do outsourced bookkeeping services cost in the UK?
Pricing depends on volume and scope, so we send a custom quote within 1 business day. As a UK benchmark, fixed-fee bookkeeping typically runs £100 to £1,500 per month, and hourly support runs £20 to £55 per hour (UK provider pricing surveys, 2026). Transaction volume and the number of bank accounts move the quote most.
Do you submit our VAT return or accounts?
No. We prepare VAT workings and a draft return, plus year-end schedules, inside your Xero, QuickBooks Online or Sage 50 file. You or your accountant reviews the figures and submits to HMRC or Companies House, so the person legally responsible always sees the numbers first.
Do you cover UK hours?
Yes. Our bookkeepers work from our second office in Pakistan on a schedule built around UK business hours, so questions raised in the morning get an answer the same afternoon rather than overnight. The same named bookkeeper and a trained backup cover your account throughout the week.
Will you handle Making Tax Digital for us?
Yes. We keep your bookkeeping inside MTD-compatible software with digital links from the bank feed through to the VAT return, so no figures are re-typed. When MTD for income tax reaches your income band from April 2026, your books are already structured to meet it.
Can you fix VAT coding errors from a previous bookkeeper?
Yes. We review the chart of accounts and the VAT code on every transaction as part of onboarding, correct misclassified entries, and flag anything that may need a voluntary disclosure for your accountant to consider. Ongoing categorisation then follows the corrected coding every month.
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