Explore the Learning Hub
Learn bookkeeping at your own pace. Discover essential accounting concepts, practical examples and useful learning resources.
What Is Bookkeeping?
Discover what bookkeeping means, why it matters and how businesses record everyday financial transactions.
Read full lesson →Accounting Equation
Understand how assets, liabilities and equity are connected, with practical examples showing why the accounting equation balances.
Read full lesson →Chart of Accounts
Learn how bookkeeping accounts are organised into assets, liabilities, equity, income and expenses, with practical examples.
Read full lesson →Cash vs Accrual Accounting
Understand when income and expenses are recognised.
Debits and Credits
Learn the foundations of double-entry bookkeeping.
Read full lesson →Journal Entries
Learn how to record financial transactions using double-entry bookkeeping, with practical journal examples.
Read full lesson →General Ledger
Learn how financial transactions are posted to ledger accounts, how balances are calculated and how the general ledger supports financial reporting.
Read full lesson →Trial Balance
Learn how to prepare a trial balance, check debit and credit totals, and identify which accounting errors a trial balance cannot detect.
Read full lesson →Balance Sheet
Learn how to prepare and understand a Balance Sheet, including assets, liabilities, equity, the accounting equation and working capital.
Read full lesson →Profit and Loss Statement
Learn how to prepare and understand a Profit and Loss Statement, calculate gross and net profit, and assess business performance.
Read full lesson →Cash Flow Statement
Understand how cash moves into and out of a business.
Gross Profit vs Net Profit
Understand two important measures of profitability.
Explore lesson ↓
What is gross profit?
Gross profit is sales revenue minus the cost of goods or services sold.
What is net profit?
Net profit is the profit remaining after deducting all relevant business expenses.
Practical example
Sales revenue: £10,000
Cost of sales: £4,000
Gross profit: £6,000
Other expenses: £2,000
Net profit: £4,000
Common mistake
Confusing gross profit with net profit when assessing business performance.
VAT
Learn the fundamentals of Value Added Tax.
Input VAT and Output VAT
Understand VAT on purchases and sales.
VAT Returns
Explore how VAT information is summarised for HMRC.
Making Tax Digital
Understand digital record-keeping and HMRC reporting.
Sales Invoices
Learn how invoices record sales made to customers.
Purchase Invoices
Understand how supplier invoices are recorded.
Credit Notes
Learn how corrections and reductions to invoices work.
Accounts Receivable
Understand money owed to a business by its customers.
Accounts Payable
Understand money a business owes to its suppliers.
Fixed Assets
Understand assets used by a business over several periods.
Depreciation
Learn how the cost of tangible fixed assets is allocated over time.
Accumulated Depreciation
Understand the total depreciation recorded on an asset.
Asset Disposal
Learn how to record the sale or disposal of fixed assets.
Bank Reconciliation
Learn how to reconcile bank statements with accounting records, identify outstanding transactions, and resolve differences using practical bookkeeping examples.
Read full lesson →Outstanding Payments
Understand payments recorded but not yet cleared by the bank.
Bank Charges
Learn how to record fees charged by a bank.
Petty Cash
Understand how small cash expenses are managed.
Gross Pay vs Net Pay
Understand employee earnings before and after deductions.
PAYE
Learn how UK employers deduct Income Tax from employee pay.
National Insurance
Understand National Insurance contributions in payroll.
Workplace Pensions
Explore employee and employer pension contributions.
Accruals
Recognise expenses incurred but not yet invoiced or paid.
Prepayments
Learn how payments relating to future periods are recorded.
Bad Debts
Understand how irrecoverable customer debts are written off.
Allowance for Doubtful Debts
Learn how expected credit losses are recognised.
Provisions
Understand liabilities involving uncertainty over timing or amount.
Inventory
Understand goods held for sale or used in production.
Cost of Sales
Learn how the cost of goods sold affects gross profit.
FIFO Inventory Valuation
Explore the first-in, first-out inventory cost method.
Inventory Adjustments
Learn how to record stock shortages and valuation changes.
Working Capital
Understand the relationship between current assets and current liabilities.
Current Ratio
Learn how businesses assess short-term liquidity.
Gross Profit Margin
Calculate gross profit as a percentage of revenue.
Net Profit Margin
Understand net profit as a percentage of revenue.
Month-End Close
Explore the checks performed at the end of an accounting month.
Year-End Adjustments
Learn about adjustments made before preparing annual accounts.
Audit Trail
Understand how accounting records provide evidence of transactions.
Supporting Documents
Learn why invoices, receipts and other records are important.