My first sale, what to do next? (bookkeeping question)

Discussion in 'Accounts & Finance' started by johnp1, Jul 24, 2019.

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  1. johnp1

    johnp1 UKBF Newcomer Free Member

    19 2
    Dear friends,

    I got my first sale online through eBay , payment processed via PayPal.

    4 Questions:

    1. What kind of information do I need to retain for this and any future sale.

    Due to low volume sales, I decided to use excel spreadsheet instead of paying for a subscription for a bookkeeping software.

    2. Is there any good UK template spread sheet already available or its better if I create a basic one in Excel?

    3. The sale was made via eBay business account, do I need to print an invoice or anything like that?
    If yes, how do I generate an invoice? What exactly am I expected to do.

    4. Is there anything else that I should do / know?

    Thank you for your kind assistance!
     
    Posted: Jul 24, 2019 By: johnp1 Member since: Oct 4, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    16,565 3,509
    1. Record date and amount received. As you are using paypal I would recommend downloading paypal statements regularly so you have a record to of what happened.

    2. I used VT Cash Book for my business. It is a free download.

    http://www.vtsoftware.co.uk/cashbook/

    If you prefer a spreadsheet this may be suitable.

    https://www.businessaccountingbasics.co.uk/free-excel-cash-book-template/

    3. There is no need to print an invoice if the customer does not ask for one. You can print invoices from ebay.

    https://www.ebay.ie/pages/help/sell/invoice-display.html

    4. If your total income from selling up to 5 April 2020 is less than £1,000 you do not need to inform HMRC. If it goes higher you need to register for self assessment.

    https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed
     
    Posted: Jul 24, 2019 By: Scalloway Member since: Jun 6, 2010
    #2
  3. johnp1

    johnp1 UKBF Newcomer Free Member

    19 2
    Thank you very much for your comprehensive answer!
     
    Posted: Jul 24, 2019 By: johnp1 Member since: Oct 4, 2018
    #3
  4. Victoria_V

    Victoria_V UKBF Regular Free Member

    153 19
    Hey there! Congratulations on your first sale! The records you will need to keep will depend on the following factors:

    a)Whether you are trading as a sole trader or an LTD company
    b) Whether you are VAT registered or not.

    Read the following link on the records you need to keep if you are trading as a sole trader

    https://www.gov.uk/self-employed-records/what-records-to-keep

    If you are registered as a LTD company, the below link explains the records you need to keep as a LTD company.
    https://www.gov.uk/running-a-limited-company/company-and-accounting-records

    If your sales volume is very low and you are not VAT registered, then a spreadsheet might be easier to keep a track of your sales records. A basic template on excel should be quite straightforward for you to set up and you could have columns for: date of sale, amount of sale, customer name, payment date from customer, description of goods sold.

    If you are VAT registered, then you will have to legally issue an invoice to your customers. https://www.gov.uk/invoicing-and-taking-payment-from-customers
     
    Posted: Jul 25, 2019 By: Victoria_V Member since: May 29, 2019
    #4
  5. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,290 2,496
    Dont think I can add any more to Scalloways super reply but to second VT cashbook over a spreadsheet. Spreadsheets may appear simple but they aren't good for bookkeeping.
     
    Posted: Jul 25, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #5
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