Doing my books?

Mandles

I wonder if anyone can help. We are a tiny business and it is my first year of doing the books. I have no clue but i am sure i could manage it . Can you tell me exactly what i need to have written(everything i need to write) and how many books i need or what i need exactly to give to an accountant


I have so far one book with incoming and outgoing(one side of page had incoming, other side has outgoing). I write date of each invoice, who invoice is from, and how much and then total them each week.

Is this all i have to do ? And any advice on finding a cheap but good accountant?

fengirl_2

It really depends on what your business does, but what you are doing sounds fine.
It would help your accountant if you put the expenditure in different columns according to their type, eg stock, postage and stationery, travel, etc.
Best way to find an accountant is through personal recommendation. Failing that, go through Yellow Pages and go and talk to 2 or 3 - see who you like the best.

McKneff

I used a book called Simplex D from W H Smith, it was just so easy with this.
About a tenner it was worth its weight in gold.

zfrl

If you are a tiny business why do you need an accountant? Could you not do it all yourself?

Mandles

zfrl wrote: »

If you are a tiny business why do you need an accountant? Could you not do it all yourself?

No, i think i could do the books easily but the tax people need profit loss account, directors report, balance sheet and tax compitation which i have not got a clue about. So i really need an acountant.

mrsmyagi

Please, please, please don't use a simplex book (sorry anniehanlon). As an accountant who trained in a small firm, the amount of time taken by your accountant to pull the numbers out of these books (as most people don't fill in the summary numbers at the back!) is massive and that's what costs you the money. If you do look at one, and decide it is for you then make sure you fill in the summary sheets as this is what will save your accountant the time.

Failing that all you need is an income book with the following columns:

Date Customer Invoice number, Gross amount, VAT amount, net amount (you can split the net amount into different types of income if you have them).

Make sure you total up each month to make it easy and then total up the year too otherwise someone at the acccountants will need to do it.

Then you need an expenses book with:

Date, Supplier, invoice no (you give them a number and file them in that order rather than using the suppliers invoice number), gross amount, vat amount, net amount - use lots of columns for the net amount based on grouping different types of expenses together (e.g purchases of stock, phone, stationery, etc etc). Again make sure you total the columns in months and for the year.

That's the basics of what you need. Then if, at your year-end date, you give them a list of invoices which you haven't paid, invoices which you haven't collected, an estimate of what your stock is worth and any cheques you have sent but haven't cleared the bank they can pull together a set of accounts no bother from that.

I'm setting up my own accounting practice so if you need an accountant I can do it by post, let me know.

Good luck

McKneff

No apology necessary, i was just passing on what worked for me, and yes
i was pretty meticulous and filled in al the summary details in the back.
so cutting down the accountant work time and hence my money

Mandles

mrsmyagi wrote: »

Please, please, please don't use a simplex book (sorry anniehanlon). As an accountant who trained in a small firm, the amount of time taken by your accountant to pull the numbers out of these books (as most people don't fill in the summary numbers at the back!) is massive and that's what costs you the money. If you do look at one, and decide it is for you then make sure you fill in the summary sheets as this is what will save your accountant the time.

Failing that all you need is an income book with the following columns:

Date Customer Invoice number, Gross amount, VAT amount, net amount (you can split the net amount into different types of income if you have them).

Make sure you total up each month to make it easy and then total up the year too otherwise someone at the acccountants will need to do it.

Then you need an expenses book with:

Date, Supplier, invoice no (you give them a number and file them in that order rather than using the suppliers invoice number), gross amount, vat amount, net amount - use lots of columns for the net amount based on grouping different types of expenses together (e.g purchases of stock, phone, stationery, etc etc). Again make sure you total the columns in months and for the year.

That's the basics of what you need. Then if, at your year-end date, you give them a list of invoices which you haven't paid, invoices which you haven't collected, an estimate of what your stock is worth and any cheques you have sent but haven't cleared the bank they can pull together a set of accounts no bother from that.

I'm setting up my own accounting practice so if you need an accountant I can do it by post, let me know.

Good luck

Do i need a cash book aswell(just read it on another site). We are plumbers so are these good enough as type, materials, stationary , phone , tools , entertaining(heard you can have a meal every month), wages, misscelaneous??
And how much am i looking at for books that turnover under £35,000 and a limited company with 1 employee.

zfrl

Didn't realise you were limited that is different. Also take care that your "turnover" does not go above VAT threshold as this is a whole different set of issues. As plumbers - if you fit systems it is easy to do!

Mandles

why is it different?

zfrl

Dealing with the VAT man - companies usually hate this more than dealing with inland revenue (even though they are now one government department).