This month we are focusing on Bookkeeping and this week we look at – What do you really need to record for bookwork?
We recommend that you record the following as a minimum:
For each transaction (eg. sale or purchase) you should record:
• Amount £ (and other currency)
• VAT £ (if you are VAT registered)
Keeping your VAT sales invoices in numerical order
• Name of other business or people as appropriate (eg. customer or supplier)
• Date of transaction (eg. invoice date and later payment date)
The following are typical transactions which should be recorded:
• Sales
• Money received from Sales
• Purchases & Expenses
• Payments for Purchases and Expenses
Remembering ‘Cash’ – often missed if the majority is paid via the bank it’s easy to pick it up – get inot a good habit of putting your cash receipts somewhere safe for record keeping.
• Capital purchases
• Payroll/PAYE
• Loans and repayments
• Dividends
• Owner’s drawings
If you know of a local business that needs help with their bookkeeping, please do pass on our details
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice
If you would like a free e-book on Tax Tips please like and share this post.