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

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  • NEWS presentation

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

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