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NEWS presentation

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Presentation to NEWS, 2nd August 2010: Setting up a simple bookkeeping system

Presentation to NEWS, 2nd August 2010: Setting up a simple bookkeeping system

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  • 1. Setting up a simple bookkeeping system Emily Coltman ACA www.freeagentcentral.com Copyright © FreeAgent Central Ltd, 2010
  • 2. Contents Copyright © FreeAgent Central Ltd, 2010
  • 3. Contents • What records MUST you keep? Copyright © FreeAgent Central Ltd, 2010
  • 4. Contents • What records MUST you keep? • Information you should be able to see Copyright © FreeAgent Central Ltd, 2010
  • 5. Contents • What records MUST you keep? • Information you should be able to see • Systems Copyright © FreeAgent Central Ltd, 2010
  • 6. Contents • What records MUST you keep? • Information you should be able to see • Systems • Paperwork Copyright © FreeAgent Central Ltd, 2010
  • 7. The taxman says... Copyright © FreeAgent Central Ltd, 2010
  • 8. The taxman says... • Tax return “fully and accurately” Copyright © FreeAgent Central Ltd, 2010
  • 9. The taxman says... • Tax return “fully and accurately” • Minimum: Copyright © FreeAgent Central Ltd, 2010
  • 10. The taxman says... • Tax return “fully and accurately” • Minimum: - Record of sales Copyright © FreeAgent Central Ltd, 2010
  • 11. The taxman says... • Tax return “fully and accurately” • Minimum: - Record of sales - Record of purchases Copyright © FreeAgent Central Ltd, 2010
  • 12. The taxman says... • Tax return “fully and accurately” • Minimum: - Record of sales - Record of purchases • Be prepared to answer their questions! Copyright © FreeAgent Central Ltd, 2010
  • 13. Suggestions (1) Copyright © FreeAgent Central Ltd, 2010
  • 14. Suggestions (1) • Cash book Copyright © FreeAgent Central Ltd, 2010
  • 15. Suggestions (1) • Cash book • Petty cash book Copyright © FreeAgent Central Ltd, 2010
  • 16. Suggestions (1) • Cash book • Petty cash book • Sales and purchase ledger Copyright © FreeAgent Central Ltd, 2010
  • 17. Suggestions (1) • Cash book • Petty cash book • Sales and purchase ledger • Wages book Copyright © FreeAgent Central Ltd, 2010
  • 18. Suggestions (1) • Cash book • Petty cash book • Sales and purchase ledger • Wages book • Invoices and receipts issued and received Copyright © FreeAgent Central Ltd, 2010
  • 19. Suggestions (2) Copyright © FreeAgent Central Ltd, 2010
  • 20. Suggestions (2) • Electronic records of sales Copyright © FreeAgent Central Ltd, 2010
  • 21. Suggestions (2) • Electronic records of sales • Items not through till Copyright © FreeAgent Central Ltd, 2010
  • 22. Suggestions (2) • Electronic records of sales • Items not through till • Miscellaneous income, e.g. rental Copyright © FreeAgent Central Ltd, 2010
  • 23. Suggestions (2) • Electronic records of sales • Items not through till • Miscellaneous income, e.g. rental • HP and leasing details Copyright © FreeAgent Central Ltd, 2010
  • 24. Suggestions (2) • Electronic records of sales • Items not through till • Miscellaneous income, e.g. rental • HP and leasing details • Stock at end of year Copyright © FreeAgent Central Ltd, 2010
  • 25. Suggestions (3) Copyright © FreeAgent Central Ltd, 2010
  • 26. Suggestions (3) • Bank statements Copyright © FreeAgent Central Ltd, 2010
  • 27. Suggestions (3) • Bank statements - Business bank account not a requirement but strongly recommended Copyright © FreeAgent Central Ltd, 2010
  • 28. Suggestions (3) • Bank statements - Business bank account not a requirement but strongly recommended • Money out for personal use Copyright © FreeAgent Central Ltd, 2010
  • 29. Suggestions (3) • Bank statements - Business bank account not a requirement but strongly recommended • Money out for personal use • Money in from personal source Copyright © FreeAgent Central Ltd, 2010
  • 30. The taxman says... Copyright © FreeAgent Central Ltd, 2010
  • 31. The taxman says... • Businessyears = keep up to 6 records Copyright © FreeAgent Central Ltd, 2010
  • 32. The taxman says... • Businessyears = keep up to 6 records • Paper or computer records Copyright © FreeAgent Central Ltd, 2010
  • 33. The taxman says... • Businessyears = keep up to 6 records • Paper or computer records - Computer must show front and back and be easily readable by HMRC Copyright © FreeAgent Central Ltd, 2010
  • 34. VAT-registered? Copyright © FreeAgent Central Ltd, 2010
  • 35. VAT-registered? • No set method Copyright © FreeAgent Central Ltd, 2010
  • 36. VAT-registered? • No set method • Strict rules about VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 37. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 38. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 39. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 40. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 41. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 42. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 43. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 44. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 45. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 46. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 47. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 48. VAT invoices Copyright © FreeAgent Central Ltd, 2010
  • 49. VAT account Copyright © FreeAgent Central Ltd, 2010
  • 50. VAT account • VAT due Copyright © FreeAgent Central Ltd, 2010
  • 51. VAT account • VAT due • Less VAT claimable Copyright © FreeAgent Central Ltd, 2010
  • 52. VAT account • VAT due • Less VAT claimable • To show VAT paid Copyright © FreeAgent Central Ltd, 2010
  • 53. Companies House say... Copyright © FreeAgent Central Ltd, 2010
  • 54. Companies House say... • Must keep records Copyright © FreeAgent Central Ltd, 2010
  • 55. Companies House say... • Must keep records • No set format Copyright © FreeAgent Central Ltd, 2010
  • 56. Companies House say... • Must keep records • No set format • Additional requirements: Copyright © FreeAgent Central Ltd, 2010
  • 57. Companies House say... • Must keep records • No set format • Additional requirements: - Letterheaded paper Copyright © FreeAgent Central Ltd, 2010
  • 58. Companies House say... • Must keep records • No set format • Additional requirements: - Letterheaded paper - All documents sent Copyright © FreeAgent Central Ltd, 2010
  • 59. Information: Profit Copyright © FreeAgent Central Ltd, 2010
  • 60. Information: Profit • Expenses > income? Copyright © FreeAgent Central Ltd, 2010
  • 61. Information: Profit • Expenses > income? • More customers? Copyright © FreeAgent Central Ltd, 2010
  • 62. Information: Profit • Expenses > income? • More customers? • Higher prices, lower costs? Copyright © FreeAgent Central Ltd, 2010
  • 63. Information: Profit • Expenses > income? • More customers? • Higher prices, lower costs? • Expensive projects? Copyright © FreeAgent Central Ltd, 2010
  • 64. Information: Cashflow Copyright © FreeAgent Central Ltd, 2010
  • 65. Information: Cashflow • Enough money? Copyright © FreeAgent Central Ltd, 2010
  • 66. Information: Cashflow • Enough money? • Credit control Copyright © FreeAgent Central Ltd, 2010
  • 67. Information: Cashflow • Enough money? • Credit control • How much tax and when? Copyright © FreeAgent Central Ltd, 2010
  • 68. Information: Cashflow • Enough money? • Credit control • How much tax and when? • Paying suppliers Copyright © FreeAgent Central Ltd, 2010
  • 69. Information: Cashflow • Enough money? • Credit control • How much tax and when? • Paying suppliers - Too fast or too slow? Copyright © FreeAgent Central Ltd, 2010
  • 70. System choices • Paper • Spreadsheet • Desktop package • Online software Copyright © FreeAgent Central Ltd, 2010
  • 71. Paper Copyright © FreeAgent Central Ltd, 2010
  • 72. Paper • Works well if: Copyright © FreeAgent Central Ltd, 2010
  • 73. Paper • Works well if: - Business is tiny Copyright © FreeAgent Central Ltd, 2010
  • 74. Paper • Works well if: - Business is tiny - Calculator-savvy Copyright © FreeAgent Central Ltd, 2010
  • 75. Paper • Works well if: - Business is tiny - Calculator-savvy - Don’t like computers Copyright © FreeAgent Central Ltd, 2010
  • 76. Paper Copyright © FreeAgent Central Ltd, 2010
  • 77. Paper • Disadvantages: Copyright © FreeAgent Central Ltd, 2010
  • 78. Paper • Disadvantages: - Time-consuming Copyright © FreeAgent Central Ltd, 2010
  • 79. Paper • Disadvantages: - Time-consuming - Error-prone Copyright © FreeAgent Central Ltd, 2010
  • 80. Paper • Disadvantages: - Time-consuming - Error-prone - Calculations Copyright © FreeAgent Central Ltd, 2010
  • 81. Paper • Disadvantages: - Time-consuming - Error-prone - Calculations - Annual gap Copyright © FreeAgent Central Ltd, 2010
  • 82. Paper • Disadvantages: - Time-consuming - Error-prone - Calculations - Annual gap - No business information Copyright © FreeAgent Central Ltd, 2010
  • 83. Paper • Disadvantages: - Time-consuming - Error-prone - Calculations - Annual gap - No business information - Accountant = bean-counter Copyright © FreeAgent Central Ltd, 2010
  • 84. Spreadsheet Copyright © FreeAgent Central Ltd, 2010
  • 85. Spreadsheet • Works well if: Copyright © FreeAgent Central Ltd, 2010
  • 86. Spreadsheet • Works well if: - Used to them Copyright © FreeAgent Central Ltd, 2010
  • 87. Spreadsheet • Works well if: - Used to them - Able to spot errors Copyright © FreeAgent Central Ltd, 2010
  • 88. Spreadsheet • Works well if: - Used to them - Able to spot errors - Not many transactions Copyright © FreeAgent Central Ltd, 2010
  • 89. Spreadsheet Copyright © FreeAgent Central Ltd, 2010
  • 90. Spreadsheet • Disadvantages: Copyright © FreeAgent Central Ltd, 2010
  • 91. Spreadsheet • Disadvantages: - Time-consuming Copyright © FreeAgent Central Ltd, 2010
  • 92. Spreadsheet • Disadvantages: - Time-consuming - Versioning Copyright © FreeAgent Central Ltd, 2010
  • 93. Spreadsheet • Disadvantages: - Time-consuming - Versioning - Error-prone Copyright © FreeAgent Central Ltd, 2010
  • 94. Spreadsheet • Disadvantages: - Time-consuming - Versioning - Error-prone - Updating Copyright © FreeAgent Central Ltd, 2010
  • 95. Spreadsheet • Disadvantages: - Time-consuming - Versioning - Error-prone - Updating - No meaningful information Copyright © FreeAgent Central Ltd, 2010
  • 96. Spreadsheet • Disadvantages: - Time-consuming - Versioning - Error-prone - Updating - No meaningful information - Accountant = bean-counter Copyright © FreeAgent Central Ltd, 2010
  • 97. Desktop package Copyright © FreeAgent Central Ltd, 2010
  • 98. Desktop package • Works well if: Copyright © FreeAgent Central Ltd, 2010
  • 99. Desktop package • Works well if: - Business is larger Copyright © FreeAgent Central Ltd, 2010
  • 100. Desktop package • Works well if: - Business is larger - Used to them Copyright © FreeAgent Central Ltd, 2010
  • 101. Desktop package • Works well if: - Business is larger - Used to them - No or slow broadband Copyright © FreeAgent Central Ltd, 2010
  • 102. Desktop package Copyright © FreeAgent Central Ltd, 2010
  • 103. Desktop package • Disadvantages: Copyright © FreeAgent Central Ltd, 2010
  • 104. Desktop package • Disadvantages: - Backup exchange Copyright © FreeAgent Central Ltd, 2010
  • 105. Desktop package • Disadvantages: - Backup exchange - Support = £££ Copyright © FreeAgent Central Ltd, 2010
  • 106. Desktop package • Disadvantages: - Backup exchange - Support = £££ - Upgrades = £££ Copyright © FreeAgent Central Ltd, 2010
  • 107. Online software Copyright © FreeAgent Central Ltd, 2010
  • 108. Online software • Works well if: Copyright © FreeAgent Central Ltd, 2010
  • 109. Online software • Works well if: - Happy online Copyright © FreeAgent Central Ltd, 2010
  • 110. Online software • Works well if: - Happy online - Good broadband Copyright © FreeAgent Central Ltd, 2010
  • 111. Online software • Works well if: - Happy online - Good broadband - Share data with accountant Copyright © FreeAgent Central Ltd, 2010
  • 112. Online software • Works well if: - Happy online - Good broadband - Share data with accountant - Accountant = trusted adviser Copyright © FreeAgent Central Ltd, 2010
  • 113. Online software • Works well if: - Happy online - Good broadband - Share data with accountant - Accountant = trusted adviser - Daily real-time information Copyright © FreeAgent Central Ltd, 2010
  • 114. Online software • Works well if: - Happy online - Good broadband - Share data with accountant - Accountant = trusted adviser - Daily real-time information - Small business Copyright © FreeAgent Central Ltd, 2010
  • 115. Online software Copyright © FreeAgent Central Ltd, 2010
  • 116. Online software • Disadvantages: Copyright © FreeAgent Central Ltd, 2010
  • 117. Online software • Disadvantages: - Needs Internet Copyright © FreeAgent Central Ltd, 2010
  • 118. Paper records Copyright © FreeAgent Central Ltd, 2010
  • 119. Paper records • Lever-arch pockets and punch files, dividers Copyright © FreeAgent Central Ltd, 2010
  • 120. Paper records • Lever-arch pockets and punch files, dividers • Files for each kind of record Copyright © FreeAgent Central Ltd, 2010
  • 121. Paper records • Lever-arch pockets and punch files, dividers • Files for each kind of record • Keep ALL pieces of paper Copyright © FreeAgent Central Ltd, 2010
  • 122. Paper records • Lever-arch pockets and punch files, dividers • Files for each kind of record • Keep ALL pieces of paper - HMRC are out there! Copyright © FreeAgent Central Ltd, 2010
  • 123. Paper records • Lever-arch pockets and punch files, dividers • Files for each kind of record • Keep ALL pieces of paper - HMRC are out there! • Note lost papers Copyright © FreeAgent Central Ltd, 2010
  • 124. Scanned records Copyright © FreeAgent Central Ltd, 2010
  • 125. Scanned records • Scanner such as Doxie www.getdoxie.com Copyright © FreeAgent Central Ltd, 2010
  • 126. Scanned records • Scanner such as Doxie www.getdoxie.com • Scan front and back Copyright © FreeAgent Central Ltd, 2010
  • 127. Scanned records • Scanner such as Doxie www.getdoxie.com • Scan front and back • Online backup such as www.depositit.com Copyright © FreeAgent Central Ltd, 2010
  • 128. Demo Copyright © FreeAgent Central Ltd, 2010