sales records

[blamonz]

Hi,

I'm new to the forum, so would like to say hello to everybody.

I'm sole trader not vat registered and have basic question about sales records for tax purposes. I sell stuff in many different ways and I accept various methods of payment and there is where I'm stuck. I'm working on setting up sufficient book keeping system (excel) and do not know how to record all those sales. I sell on ebay (paypal, pay in cash), few ecommerce shops (paypal, bank transfer, cheque, google checkout), sometimes amazon. Each of those sites create invoices for every sale, so I assume I do not have to worry about that. But how to record it all in my books? Shall I sum up the daily sales from every source and enter it into sales ledger? Or organize them by method of payment? What about reconciliation?

Thanks for all Your help.

[Chris Ashdown]

The simplest way is:-

Open a business account with your bank

Pay everything you purchase for the business out of the company account

Record each transaction in a book in date order one page for sales one for purchases

Get either a book keeper or accountant to produce year end figures

kEEP ALL PURCHASE AND SALES INVOICES IN DATE ORDER FOR FIVE YEARS

[blamonz]

Hi,

Thanks for your answer, but it does not exactly explain what I mean in my question.

[MyAccountantOnline]

Hi

Excel sheets are OK - but, in my experience, they can become very cumbersome and time consuming.

If you want to look after your own bookkeeping I'd look at something which enables you to import your data. One of my favourite online packages is Accounts Portal but you have a huge choice and I'm sure lots of people will recommend packages for you.

You may also be interested to have a look at the services my firm offers. We are accountants and offer an all in one combined service which includes bookkeeping, VAT returns (if required), monthly accounts and reports, and year end accounts and tax returns as part of our standard packages - so you dont have to worry about any bookkeeping at all.

[Williams lester]

Another vote here for Accounts Portal, the bank statement/paypal importing will make life much easier for you.

We also offer a fully inclusive service, details and prices are on our website.

[blamonz]

Would anyone take some time and try to answer my question, please?

Thank You

[elainec100@cheapaccounting]

Any system will work. The main thing is for you to be able to reconcile the figures to the bank and show a clear audit trail of your sales and purchases.

There is no set system and it is best to develop a method that you feel happy doing.

[blamonz]

So there is no rules how should I record sales? by method (place) of sale or method of payment? What do you think is better?

[MyAccountantOnline]

So there is no rules how should I record sales?
Correct

What do you think is better?
As long as you have a full record of all sales it's what works best for you, and enables you/your accountant to prepare your year end accounts and tax returns.

[blamonz]

Do I have to issue an invoice for every sale or the invoices created on ecommerce sites /ebay are enough for the records?
If I download monthly sales from PayPal + Monthly sales from google checkout etc. just put the sum to the cash book (with heading paypal sales etc.) at the end of each month, would that be sufficeint?

Thank You for all your help.

[Chris Ashdown]

Shops do just a daily total, but they do keep their till rolls to be able to prove everything to HMRC if needed

Your best bet is to ask whoever does your returns what will make there life easier and hence cheaper for you