Bookkeeping is an essential part of running a business or working as a freelancer. To help you understand what is needed to be accounted for, here is a basic bookkeeping for new business start ups. You will need the information to make sure everything is in order when it comes to doing tax returns and VAT.
If you are computer literate then you can find some excellent office software which can be used very effectively. If you are new to these types of programs it is a good idea to take some time out to learn, perhaps with the help of a tutor.
Before you start on the PC it is worth learning the traditional method of bookkeeping. This is where ledgers were used for different things. A cash book records all of the financial movements, so it works like a bank statement.
A sales ledger is separate to this and this is where you record everything that has been purchased from your company, be it products or services. The information that is stored is the sale, date and the customer and the amounts that the items were sold for and kept in this book. If credit was given this is also noted in the sales ledger.
The purchase ledger records everything which your company purchases. This can be assets, items, and services which have been paid for out of the company accounts. Wages can be recorded in their own book where you can put all of the salary details and N. I contributions.
All receipts must be kept as these can be used in your tax returns. Invoices should be stored also, keep unpaid ones separate from ones which have been paid in full. If you can afford it you can benefit greatly from hiring the help of a bookkeeper. This can be beneficial even if they are only employed for one or two hours a week.
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