Accounting for non-accountants
Plain-English answers to the questions every UK founder eventually asks.
Accounting for non-accountants: the plain-English guide for UK founders
You don't need to be good at numbers to run a business. This plain-English guide maps the few numbers that matter, the UK deadlines, your entity type, and when to get help.
Read the guide →“What is…” basics
- Debits and credits explained (so you never have to think about them)Debits and credits explained in plain English — what they actually mean, why every entry has two sides, and the honest truth: with modern software, you shouldn't have to think about them at all.6 min
- Gross vs net: which number actually matters?Gross vs net explained in plain English — profit, pay and VAT. What each word means, where you'll meet them as a UK founder, and which number to actually look at and when.6 min
- Profit vs cash: why you can be profitable and still brokeProfit on paper and money in the bank are not the same thing — and the gap catches out almost every founder. Here's the difference in plain English, with a worked £ example.6 min
- What does 'accrual vs cash accounting' actually mean for me?Cash vs accrual accounting explained for UK founders — record money when it moves, or when it's earned and owed? What each method means, who it suits, and the UK cash basis rules for small businesses.7 min
- What is a balance sheet? (explained without the jargon)A balance sheet is a snapshot of what your business owns and owes on one day. Here's what it means in plain English — with a UK example, why your numbers matter, and what investors expect.8 min
- What is a chart of accounts (and why do I have 60 of them)?Chart of accounts explained in plain English — it's just the labelled drawers your money gets sorted into. Why you have so many, what they're for, and why good software sets them up for you.6 min
- What is a P&L (profit and loss) in plain English?A P&L shows whether you made money over a period. Here's every line explained in plain English — revenue, cost of sales, gross profit, overheads and net profit.6 min
- What is reconciliation in accounting?Bank reconciliation explained in plain English — what reconciliation means (checking your records match the bank, line by line), why it matters for trust and accuracy, and why founders worry about it.6 min
- What is VAT and do I actually have to charge it?VAT explained in plain English: what it is, the £90,000 registration threshold, the standard, reduced and zero rates, and input vs output VAT — without the jargon.6 min
- What's the difference between an invoice and a receipt?An invoice is a request for payment; a receipt is proof it was paid. Here's the difference in plain English — when you use each and what each must show in the UK.5 min
“Do I even need to…”
- Accountant vs bookkeeper: what's the difference, and do you need both?A bookkeeper and an accountant do two different jobs — and every founder needs both done. Here's the plain-English difference, plus why the bookkeeping half is now better (and far cheaper) done by AI than by a human.10 min
- Can I do my own bookkeeping? (A realistic guide)Yes, you can do your own bookkeeping — and most of it is now automatic. Here's what bookkeeping actually involves, what's handled for you, and when to get help.6 min
- Do I need an accountant for my small business?Do you need an accountant? For some things, yes — year-end and complex tax. For day-to-day bookkeeping, not really. Here's the honest, plain-English answer for UK founders.6 min
- Do I need to file accounts if I made no money?Yes — even if your company made no money, you still file dormant company accounts and a confirmation statement. Here's the plain-English version, and why it's a near-empty filing.6 min
- Sole trader vs limited company: which should I be?Sole trader or limited company? An even-handed, plain-English guide to the tax, liability, admin and credibility differences — and the rough income point where going limited starts to pay off.7 min
- What records do I legally have to keep (and for how long)?A plain-English guide to the records UK businesses must legally keep — for HMRC and Companies House — what counts as a record, and how long to keep them (usually 6 years).6 min
- When do I have to register for VAT?You must register for VAT once your taxable turnover passes £90,000 in any rolling 12 months. Here's the threshold in plain English, plus voluntary registration and what happens if you register late.6 min
Tax & deadlines
- How much tax will I actually pay? (founder's rough guide)A plain-English, reassuring overview of the taxes a small UK limited company and its founder actually meet — Corporation Tax, dividend tax, income tax and National Insurance — with rough ranges. Confirm current rates with HMRC.6 min
- Self Assessment for the terrified: a step-by-stepA calm, step-by-step guide to Self Assessment for terrified beginners — registering, what you need, the 31 January deadline, and payments on account explained in plain English. Confirm current dates with HMRC.6 min
- The UK small business tax calendar (every deadline, plain English)Every key UK tax and filing deadline for small businesses — Self Assessment, VAT, Corporation Tax, PAYE, confirmation statement and accounts — explained in plain English. Confirm current dates with HMRC.7 min
- What can I claim as a business expense? (the honest list)The honest, plain-English list of allowable business expenses in the UK — what you can claim, common ones people miss, what you can't claim, and the 'wholly and exclusively' rule. Confirm current rules with HMRC.6 min
- What is Corporation Tax and when do I pay it?Corporation Tax is the tax your limited company pays on its profit. Here's what it means in plain English, when it's due (9 months and a day after year-end), and how filing the CT600 works. Confirm current rates with HMRC.5 min
- What is Making Tax Digital and does it affect me?Making Tax Digital is HMRC's move to digital tax records and software-based filing. Here's a plain-English yes/no on who it affects — VAT-registered businesses now, Income Tax Self Assessment next — and what 'digital records' really means. Confirm current dates with HMRC.5 min
Money in / money out
- A simple burn-rate model you can build in an afternoonYou don't need a finance team to model your burn and runway. Here's how to build a simple, honest 12-month cash model in a spreadsheet in an afternoon — what goes in each row, and the scenarios worth running.8 min
- Default alive vs default dead: what it actually means for your numbersDefault alive means you'd reach profitability on your current cash, growth and spending before the money runs out. Default dead means you wouldn't. Here's how to work out which you are — and what to do about it.7 min
- How to read your numbers when you hate numbersYou don't need to be good at maths to run a business. Here are the 4–5 numbers that actually matter, in plain English, and a calm way to glance at them without panic.7 min
- What is gross margin and why should I care?Gross margin is what's left of each sale after the direct cost of delivering it. Here's what it means in plain English, why it matters in one line, and a simple % example.5 min
- What is runway and how do I work out mine?Runway is how many months of cash you have left at your current burn. Here's the simple formula, a worked example, and a free calculator — explained for non-accountants.5 min
- Working capital explained (the money your business needs to breathe)Working capital is the everyday money tied up keeping your business running — what you're owed plus stock, minus what you owe. Here's what it means, with a simple example.6 min