creating business accounts

martindow

I think it depends on how many entries you have each month. If it is not too many I would just use a note book or accounts book and add totals at the end of each page or each week. I number expenses, write the number on the receipt which I clip to sheets of paper and file away so it is easy to find them if needed. Invoices can be done in the same way. I also have sheet for each month where I note down the business car mileage. I double check the entries and addition to ensure accuracy.

If you have got a lot of entries - hundreds a month say - then a spreadsheet might be a good idea but for smaller amounts it is often less work to write it down. If you do choose to become computerised, back up and print out copies of pages regularly.

The inland revenue don't stipulate any particular system, but they do require that it is understandable and that paperwork matching entries is retained and can be easily found. An accountant is likely to cost several hundred pounds a year and a lot more if you haven't done all the work yourself. As they charge by the hour, you don't want to just tip a box of receipts and invoices onto their desk!

windswept

martindow wrote:

I think it depends on how many entries you have each month. If it is not too many I would just use a note book or accounts book and add totals at the end of each page or each week. I number expenses, write the number on the receipt which I clip to sheets of paper and file away so it is easy to find them if needed. Invoices can be done in the same way. I also have sheet for each month where I note down the business car mileage. I double check the entries and addition to ensure accuracy.

If you have got a lot of entries - hundreds a month say - then a spreadsheet might be a good idea but for smaller amounts it is often less work to write it down. If you do choose to become computerised, back up and print out copies of pages regularly.

The inland revenue don't stipulate any particular system, but they do require that it is understandable and that paperwork matching entries is retained and can be easily found. An accountant is likely to cost several hundred pounds a year and a lot more if you haven't done all the work yourself. As they charge by the hour, you don't want to just tip a box of receipts and invoices onto their desk!

It seems like we share a similar system, I use different colour folders, for expenses, suppliers invoices, stock lists and prices, customer invoices etc. my accounting book has weekly columns in the back for end of year, so you can just total everthing up, I also use a printing calculator on a monthly basis just to make sure my figures match! the key is creating a system that YOU feel comfortable with and understand completely, my hubby can't work out my accounts at all!

naturegirl_2

Thas what I need is a simple system that I can work with each month. I have plastic wallets for each month which I put in receipts and invoices in another one. but I've got this idea that I should have a "book" with all the figures in so if I need to produce accounts for ie a mortgage I give them this "book" !!! Am I right or daft!! many thanks

Savvy_Sue

Certainly it's more convenient to have your accounts in more convenient form that raw receipts when you want someone else to look at how you're doing ... :rotfl:

Have replied to your pm and sent you my file!

mikewebs

I would certainly try getting onto a book-keeping/accounting course. Also as others have said use a spreadsheet or sage

naturegirl_2

Thanks, I went on a book keeping course when I started my business and found it was so general I couldn't really relate it to what I required. I've forgotten it all now except how to do a spreadsheet. Me and number dont mix I've had the problem since I was a kid. Even taking down phone numbers is difficult they dont seem to make sense unless its repeated slowly !!!