Help with Basic Accounting

[UIAUK]

Hi

My wife is going self employed tomorrow. She'll be selling on-line and first year we predict the turn over to be between £10K - £15K.

I don't think we will need an accountant BUT i would like some directions as to how to help her to keep on top of the Accounts.

I know we have to record ALL income and ALL expenses. What then?

Is there a spreadsheet/template somewhere i could use? Or even a basic accounting software what will do the basics?

All help/advise is appreciated

Many thanks

 

[David Richards]

There are a number of basic bookeeping applications out there that are free.

A spreadsheet is fine for listing money in and money out, but go beyond that and things can start to get a bit complicated.

Even a simple bookkeeping program helps you keep on top of your cashflow, makes reconciling your bank account easier and over time can give you a really good insight into your business. For example, just being able to easily classify your costs can soon reveal useful things you didn't know.

Investing in a more sophisticated program gives you even more tools to help you with the money side of your business - and can reveal bits of information that can help you grow your business. Of course, working for a software company, you'd expect me to say that. So don't take my word for it, give one of the freebies a go... you might be pleasantly surprised!

Obviously, I'd hope that you choose my product, but please... choose anything rather than using a spreadsheet!

 

[UIAUK]

Thanks David

Yes i will definitely give your product a go.

But what's the catch? Why is it free?

And thanks for the prompt response

Yousuf

 

[David Richards]

But what's the catch? Why is it free?

No catch! (Rather than bore everyone here with the reasons why it's free, you'll see the explanation on our website. )

 

[CassioAcc]

Also look at VT cashbook - it is free and very good basic cashbook software.

 

[talkinpeace]

OP
The reason basic book keeping software is free / cheap is the processing such things is very boring for folks like us
we like to play with the completed numbers, not key dozens of petrol receipts
hence - you do the dull bit, we add value.

 

[MyAccountantOnline]

I'd definately take a look at TAS and VT cashbook - I have a lot of clients that start off using VT cashbook.

Not sure if you are aware that your wife will need to register with HM Revenue & Customs - here's a link to some helpful information - HMRC website

 

[MyAccountantOnline]

Here's another link for you which may also be helpful - HMRC website and record keeping

 

[UIAUK]

Thanks all

We are doing business on ebay for now and selling about 15 items per day.

Should we record each item or would a total of items sold be sufficient?

Thanks again

 

[MyAccountantOnline]

Thanks all

We are doing business on ebay for now and selling about 15 items per day.

Should we record each item or would a total of items sold be sufficient?

Thanks again

You can summarise the monthly transactions and enter the monthly totals in your records or even easier use a good accounting package that simply imports the data. Accounts Portal is one that does this.

 

[elaine@cheapaccounting]

Thanks all

We are doing business on ebay for now and selling about 15 items per day.

Should we record each item or would a total of items sold be sufficient?

Thanks again

A total of the items sold is fine - account for gross sales and the fees as a cost.

 

[Chris94]

I am not an accountant but have been writing bookkeeping software and dealing with small business for 25 years. I think you do want to enter details of each sale (not just a monthly total). And possibly keep a note of the name and address of each customer -- depends whether you hope to sell to them again in future (it is much easier to sell to existing customers than to new people). While you are starting off small this doesn't really matter, but as time goes by you may be glad you did it properly from the start.

 

[elaine@cheapaccounting]

I am not an accountant but have been writing bookkeeping software and dealing with small business for 25 years. I think you do want to enter details of each sale (not just a monthly total). And possibly keep a note of the name and address of each customer -- depends whether you hope to sell to them again in future (it is much easier to sell to existing customers than to new people). While you are starting off small this doesn't really matter, but as time goes by you may be glad you did it properly from the start.

With respect this is a little outdated and impractical for those selling via ebay.

Proper accounting records are available via PayPal and ebay then summarises are posted into the accounting system - see e.g. Kashflow PayPal upload as a great example of this in action.

 

[MyAccountantOnline]

I am not an accountant but have been writing bookkeeping software and dealing with small business for 25 years. I think you do want to enter details of each sale (not just a monthly total). And possibly keep a note of the name and address of each customer -- depends whether you hope to sell to them again in future (it is much easier to sell to existing customers than to new people). While you are starting off small this doesn't really matter, but as time goes by you may be glad you did it properly from the start.

For accounts purposes I agree with Elaine a monthly total entered into the records is fine. Unless you use software with an automatic import feature, which many good packages do have, you'll spend ages entering each sale into your records and duplicating records you have.

 

[Chris94]

With respect this is a little outdated and impractical for those selling via ebay.

Proper accounting records are available via PayPal and ebay then summarises are posted into the accounting system - see e.g. Kashflow PayPal upload as a great example of this in action.

It depends how much you trust PayPal and eBay to keep those records for you for the next few years. And for marketing and after-sales support I'd prefer to have my client's addresses in my own database.

But I'd agree it makes life easier if you download details and import into your accounts package.

 

[MyAccountantOnline]

It depends how much you trust PayPal and eBay to keep those records for you for the next few years. And for marketing and after-sales support I'd prefer to have my client's addresses in my own database.

I wouldn't for one moment suggest not keeping the PayPal/Ebay records - you'd simply download them and keep them.

Unless you use an automated import to your accounts software can you imagine for a typical Ebay seller the amount of work it would involve entering each sale in their records manually. It would take a very long time!

 

[elaine@cheapaccounting]

It depends how much you trust PayPal and eBay to keep those records for you for the next few years. And for marketing and after-sales support I'd prefer to have my client's addresses in my own database.

But I'd agree it makes life easier if you download details and import into your accounts package.

These days there is a great download facility from paypal - maybe have a look at how it all works.