Business expenditure records

Chiclady

Hi, would love some advice if anyone could help please?

I'm in the process of setting up a small business. I will be buying some things in to sell straight away and other things (such as mdf, wood, card, glue, paint and craft materials) which I will use to make other things to sell. Finally i'll also need items such as sanding block, blades etc for my work.
Can I ask the best way to record my expenses. I was going to put the receipts in date order on a spreadsheet, just showing date, where bought and how much was spent but should I be breaking this down into sections such as : Items to sell, Items to make goods, tools?

Many thanks

zygurat789

Chiclady wrote: »

Hi, would love some advice if anyone could help please?

I'm in the process of setting up a small business. I will be buying some things in to sell straight away and other things (such as mdf, wood, card, glue, paint and craft materials) which I will use to make other things to sell. Finally i'll also need items such as sanding block, blades etc for my work.
Can I ask the best way to record my expenses. I was going to put the receipts in date order on a spreadsheet, just showing date, where bought and how much was spent but should I be breaking this down into sections such as : Items to sell, Items to make goods, tools?

Many thanks

Yes. You will apprecate why when you see what the result is although you wont, necessarily, need it for tax purposes.
You should have Purchases, everything you will resell maybe subdivided into finished items and materials for you to make up. Expenses analysed by type. For types see the self assessment tax return for turnover greater than £81,000.