Bookwork question

moneymabel

I've officially had my first order from my website-woo-hoo!! only £8 but its a start:-) Only now I'm having a brain meltdown about the bookwork. I do it all on paper-2 sections, one for expenses and one for customers. It's usually easy as I supply shops so no postage or charges apply.

The customer paid £11.50, £8 for charm and £3.50 for postage. It went through paypal so I was charged 59p to withdraw. do I write £11.50 in the customer/incoming section and then 59p and actual postage cost (£1.39) in outgoings? Or can't I put the paypal charge in expenses?
I'm sure its simple but my head hurts!!!!
Any help most appreciated!

chickmug

"£11.50 in the customer/incoming section and then 59p and actual postage cost (£1.39) in outgoings"

This is right as the post and the paypal ARE expenses.

Congratulations on your first one.

moneymabel

Thnaks Chickmug-I thought it was right but the more you think about it the more complicated you make it!!! Thanks for confirming

fengirl_2

You will find it easier to compile your accounts at the end of the year if you analyse your expenditure as you go along. Use a spreadsheet and make a column for each type of expense, eg purchases, postage, Paypal charges, wrapping materials, etc. At the end of the year you can total each type of expense so that your final accounts show a list of expenses under type.

ukbill69

I think about if you going to send your books off or ask an accountant to do this. If an accountant is doing the books, then ask them how they like you to record. I agree that excel is best way to start.

moneymabel

Thanks fengirl and ukbill, points taken but I am completely useless with computers and do prefer to have everything on paper . I do my accounts and tax return myself ( I do do that online!) I will look into excel though and try to get my head round it- anyone know of an excel for idiots type guide I could read? I'll do a search online but if anyone could recommend anything I'd be grateful. Thankyou.

fuzzball172

It might be worth contacting a couple of accountants, quite a few offer a free 30 min session so you can have a chat about what is needed, it might be worth a go.

Office for dummies is a good book

Lee

fengirl_2

If you prefer to do your accounts on paper, then use a cash book to make your entries in the way that I have described. Its been done that way for hundreds of years!

moneymabel

Thanks Fuzzball-will checko ut that book.
Thanks fengirl-i reckon that even if I do conquer excel I still won't trust it so will still do it on paper anyway!! Reckon I might stay as I am until the business takes off so well I can't cope (haha ha-well you never know :-)) And if it takes off that well I'll be able to afford an accountant :-)

Horace

I use a cashbook for my accounts - or rather its an accounting pad with separate sheets so I use one for income and one for expenditure - extremely basic I know but it works for me, then I have an accountant to sort out my tax and tell me what I can and cannot claim:D

moneymabel

Sometimes basic is best I reckon-and I'm quite fond of stationery (sad I know !)