Basic Bookkeeping by Shona Hunston
Why is it needed?
- It is essential for the finances of your business.
- By law, HM Revenue and customs require your business to keep records if you are VAT registered.
- Raising finance- business or personally e.g. a mortgage, it is demonstrated through these records for moneylenders.
What do you keep?
Sales (money in):
- Invoices
- Till receipts/rolls
Record of purchases/ expenses (money out):
- Receipts
- Invoices
Bank transactions:
- Bank statements operate from a separate business account
- Paying in slip
- Cheque book stubs
- Credit card statements
Records for petty cash (receipts for item purchased from petty cash)
Have a filing system ordered by date.
How should it be kept?
- Paper based e.g. Simplex D, WHSmiths provide bookkeeping stationary.
- Computer based e.g. QuickBooks, Sage, MYOB
Main accounting books:
- Cash/money in book (cheques, cash, DD’s (Direct Debits), SO’s (Standing Orders, bank transfers)
- Cheque/money in book
- Sales, purchase, wages books
You keep records because if you issue an invoice and you don’t get paid, you have proof for it!
Benefits for you:
Potential to reduce accountancy costs and understand how your business is going.