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Accountants in Preston

What do I need to record?

A business owner needs to keep financial records for quite a few good reasons.  The main and best reason is to keep track of profit (or loss), which is very important.

It is also critical to know how much you owe and how much you are owed.

It is also a legal requirement to keep records, especially for the tax authorities.  

Other people who are interested will be anyone who has lent money to the business, especially a bank.

It is possible for a small business to keep good records on a spreadsheet.  We have a free spreadsheet which you can use.  paulainsworth@ainsworthaccountants.co.uk

Once a business begins to grow it becomes more difficult for a spreadsheet to cope and we recommend recognized accounting software like QuickBooks.

For Sales you should keep the following minimum record:

  • Customer Name.
  • Customer Address, and "Ship To" Address if applicable.
  • Date of Sale.
  • Date when payment received.
  • Your Invoice Reference.
  • Total Amount receivable.
  • If you are VAT registered, the VAT amount, and the Net and Gross amounts.
  • Type of Goods or Services supplied, including quantities.
  • Your Terms of business, eg. when the Sales Invoice should be paid.

For Purchases you should keep the following minimum record:

  • Supplier Name.
  • Supplier Address.
  • Date of Purchase Invoice.
  • Date when Purchase is paid for.
  • Supplier's Invoice Reference.
  • Total Amount payable.
  • If you are VAT registered, the VAT amount, and the Net and Gross amounts.
  • Type of Goods or Services purchased, including quantities.
  • Supplier's Terms of business, eg. when the Purchase Invoice should be paid.

It is very important for the Cash Flow of your business that you know when you should be paying your bills and when the money should be coming in.

Once a week you should check through the total amount you are owed and how much you owe.

If you would like a Sales Invoice which is professional in appearence please contact us.