Partnership bookkeeping

Know your business better and make more money by using our partnership bookkeeping service.

A bookkeeping partner for business partnerships

Every partner in a business partnership understands that two (or more) heads are better than one. You and your partners chose each other because of the complimentary skills you have, how well you work together, and your joint ambitions.

Many of the UK’s most successful private limited companies started off as partnerships. However, setting up as a partnership is a lot easier at the start and it provides you and your partners with a great opportunity to discover whether you really can work together.

As your Business Bookkeeper, we’ll be able to tell you when it’s more advantageous for you and your fellow partners to become shareholders and directors of a company you jointly own.

In the meantime, we’re here to make sure that you and your partners know better than ever how your business is performing and to take away the work of regular financial record keeping from you so that you all have the time you need to concentrate on what you do best.

Depending on the level of service you need from us, we’ll look after payroll, bank reconciliation, cash flow, accounts receivable, accounts payable, and more. We create end-of-year data packs for your accountant allowing them to complete and submit your partnership tax return as well as your Self Assessment forms. If you like, you can have access to monthly management accounts so you can track in real time the progress of your business and help you with improving your business strategy and processes.

Here at the Business Bookkeeper, our team have a decade of experience providing our services to business partnerships.

In many ways, it’s more important for partnerships to keep their accounts most accurate than limited companies. The amount you pay as partners in National Insurance and tax is normally far greater than the amount a director pays in salary and dividend – accurate financial record keeping means that you and your partners can claim on every allowable expense reducing your personal liabilities to HMRC.

Are you concerned about the current state of your books? Don’t worry – we’ll be able to get everything to required HMRC standards within the shortest possible time.

Get in touch with us – let us know more about your partnership and what you do. We’ll put together a bespoke package of services for your partnership competitively priced at a fixed monthly fee. We look forward to hearing from you. Please call us on 020 3137 6565 or send us a message.

Your Complete Bookkeeping Solution includes

Core Accounting

  • Xero accounting software
  • Paperless expense and receipt app
  • Recording all business bank and credit card transactions
  • Recording purchase invoices, expenses and cash transactions
  • Supplier Statement Reconciliation
  • Completing the bank reconciliation
  • Completion of VAT returns

Management Insights

  • Financial dashboard
  • Management reporting
  • Cash flow forecasting
  • Quarterly business review meeting
  • Budgeting

Support

  • Year End Pack for Accountant
  • Email and telephone support

Optional extras

  • Sales Invoicing
  • Supplier & staff payments
  • Xero accounting software set-up
  • Xero migration service
  • Payroll and auto enrolment
  • Self-Assessment Tax returns
  • CIS service

Optional extras

  • Cash flow forecasting (12 months)
  • Enhanced credit control
  • Scenario planning
  • Xero training
  • Accounts inbox management
  • Annual accounts and corporation tax return
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Interested in our complete bookeeping solution?

If you would like to find out more about how we can help your business then please book a discovery call with our team.

Frequently Asked Questions

Partnership bookkeeping

Partnership accounts are more complicated than sole trader accounts. For example, there is no legal requirement for your partnership to prepare accounts like there would be if you and your partner were running a limited company. However, accounts are required every year for a profit and loss statement and a balance sheet statement so that you and your partners’ tax returns are completed accurately and fully.

Each partnership must have a “nominated partner” – they’re the partner responsible for keeping the partnership’s business records and submitting accurate tax returns on time. The nominated partner must keep records of all asset purchases and disposals separate from the records containing the partnership’s sales and running costs as well as records which show business and personal use of expenses, goods, and assets related to the partnership. 

In addition, detailed records must be kept on the level of stock left at the end of the accounting year, any money taken out of the business by a partner for their personal use, and any private money introduced to or taken out of the partnership.

They must also register the partnership. The nominated partner and the remaining partners must also register for Self Assessment with HMRC. Each partner is taxed on their share of the business profits meaning that accurate bookkeeping is essential. 

When you work with the Business Bookkeeper, we take care of all of your financial record keeping meaning that the nominated partner and all other partners in the business can concentrate on what they do best.

The people in a partnership must pay income tax and National Insurance on their share of the partnership’s annual profits. Partners also pay Class 2 and Class 4 National Insurance contributions.

Partners complete individual Self Assessment forms and the amount of tax they pay is based upon the annual profit they personally draw from the partnership.

Partnerships themselves pay no income tax or National Insurance although partnerships do have to file a partnership business tax return by 31st January each like just like Self Assessment. However, if a partnership turns over more than £85,000 a year, it must register for VAT. 

In addition, if you and your other partners take on members of staff who have no share of the partnership, you will be liable for staff wages, Employers’ NI contributions, and workplace pension contributions. 

At the end of your accounting year, you can deduct certain allowable expenses from the profit made by the partnership. 

Although this reduces the amount of money which can be distributed to the partners, it works out better for you because this is a truer and more accurate reflection of the profit you’ve made during the year. At The Business Bookkeeper, our job is to regularly update your financial records so that you’re in better control of your business and so that, if HMRC wants to inspect your books, they’ll find everything in order.

The types of financial records you’ll have to keep as a partnership will vary according to the type of business you run but, during the year, we’ll help you manage the following records:

  • available stock at the end of your accounting year

  • bank and building society statements (including paying-in slips containing details of business transactions,  cheque stubs, and pass books)

  • cash book

  • electronic records of sales or your till rolls

  • leasing and hire purchase details

  • miscellaneous/incidental  income including rent for partnership-owned accommodation

  • petty cash book

  • private money introduced into or taken out of the business

  • receipts and invoices received and issued

  • records of cash removed from the business for you or your family’s personal use

  • sales not taken at the till

  • sales/purchase ledger

  • wages book