Every company needs to learn basic bookkeeping for new business start ups. You will need to learn some basic skills in this area to keep a good track on your finances. This is then used to work out your tax and VAT bills, as well as helping you see how your company is performing.
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.
Traditional methods can help you to understand how the systems work. Cash books are there to record every time money comes in or leaves the business bank accounts. This works in the same way as bank statements.
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.
Purchases which are made by the company are written down in the purchase ledger. You will need to record every transaction. A good way of keeping tracks on how much you pay for wages is to keep a separate book for salary information and national insurance payments.
It is vital for your records that you keep all receipts of all purchases you make and every invoice that you send. Keep a file for ones which have been paid and another file for outstanding accounts. If you find it difficult to manage your bookkeeping then it is worth paying for someone to help you even for a few hours each week. This can help you stay on top of your accounting.
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.
Traditional methods can help you to understand how the systems work. Cash books are there to record every time money comes in or leaves the business bank accounts. This works in the same way as bank statements.
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.
Purchases which are made by the company are written down in the purchase ledger. You will need to record every transaction. A good way of keeping tracks on how much you pay for wages is to keep a separate book for salary information and national insurance payments.
It is vital for your records that you keep all receipts of all purchases you make and every invoice that you send. Keep a file for ones which have been paid and another file for outstanding accounts. If you find it difficult to manage your bookkeeping then it is worth paying for someone to help you even for a few hours each week. This can help you stay on top of your accounting.
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