Now that we have started to deal with our paperwork we need to input this information somewhere, but where?
Do you really need to have some proper software? Will it cost a lot of money?
There are many types of software on the market, for many simple businesses and excel spreadsheet works well and of course it won't cost you anything!
However if your business is more complex, perhaps you are a limited company or perhaps you want access to up todate management reports to help you make decisions about your business, then you will need to invest in proper software.
There are lots on the market, but the 2 we would recommend would be SAGE or Liquid Accounts.
SAGE http://www.sage.co.uk/ is the most well known accounting sofware, as well as the famous SAGE line 50 products, they also do a great product called SAGE instant which is made for smaller businesses and costs around £120. Most accountants will work with and know SAGE well.
Liquid www.liquidaccounts.net is an online software, so you can access it from anywhere, or your accountant can log in to get information, it is extremley user friendly and there are no upfront costs so you just pay on a monthly basis
Have a look around trial some different products and see which one works for you and your business
Wednesday, 25 May 2011
Sunday, 15 May 2011
Using a diary
One thing I get asked a lot is it best to keep a record of the mileage. It is a good idea to keep a diary with the address of where you have been or even a separate mileage log book. Try not to leave it until the end of the month or even worse the end of the year!
A diary is something you probably use everyday anyway, so it is easy to just make a note of the mileage you've done. This can also be used to show a record of money received. This is particularly useful for trades people, and I would suggest making a note of money received and money spent on each day. This will been your records will be much more water tight and more accurate. Remember if the worst happens and HMRC investigate you it is down to you to prove your figures!
A diary is something you probably use everyday anyway, so it is easy to just make a note of the mileage you've done. This can also be used to show a record of money received. This is particularly useful for trades people, and I would suggest making a note of money received and money spent on each day. This will been your records will be much more water tight and more accurate. Remember if the worst happens and HMRC investigate you it is down to you to prove your figures!
Friday, 6 May 2011
There is nothing wrong with a shoe box!
Keeping on top of your books can seem like a never ending task. Lots of paperwork and not really sure where to put it!
Over the next few weeks, I will guide you through the process from receiving paperwork to choosing software to generating reports for you to use.
Lets start off with your filing system
Get 3 x Files
2 x Dividers
File 1 - is for supplier invoices, in front of the divider put all the unpaid ones, when you pay it move it behind the divider, put on how you paid and the date you paid
File 2 - exactly the same but for customer invoices (you may decide to keep these electronically)
File 3 - For all of you bank statements
But you are busy you might not get time to this everyday, so to make your life easy, why not have a shoe box (or similar) for small receipts, everyday empty your bag or your pockets and put them in there and deal with them on a weekly basis
Have a box file for all other invoices, so they are all in once place and ready to file
Finally set aside some time every week, this is much eacsier than leaving it until the end of the year!
Next week we will talk about other reocrds you should keep, mileage logs, diaries and more!
Over the next few weeks, I will guide you through the process from receiving paperwork to choosing software to generating reports for you to use.
Lets start off with your filing system
Get 3 x Files
2 x Dividers
File 1 - is for supplier invoices, in front of the divider put all the unpaid ones, when you pay it move it behind the divider, put on how you paid and the date you paid
File 2 - exactly the same but for customer invoices (you may decide to keep these electronically)
File 3 - For all of you bank statements
But you are busy you might not get time to this everyday, so to make your life easy, why not have a shoe box (or similar) for small receipts, everyday empty your bag or your pockets and put them in there and deal with them on a weekly basis
Have a box file for all other invoices, so they are all in once place and ready to file
Finally set aside some time every week, this is much eacsier than leaving it until the end of the year!
Next week we will talk about other reocrds you should keep, mileage logs, diaries and more!
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