Sole trader accounting.

[Reven1987]

Hello.
I am starting next week with my business selling items on eBay. I watched some tutorials and read some articles about accounting but the solutions are either too expensive and some are too complex for me.
If I create an excel sheet, and make a few columns :goods for sale cost, expenses, income and once a month I will enter there ebay sales amount, all receipts, paypal costs, fuel and rental costs and add it up.
Is it enough to fill the self assessment at the end of the tax year?

 

[STDFR33]

Yes.

But have a look VTcashbook. It’s free and simple to use.

 

[Scottishgifts4u]

Yes.

The inland revenue are only interested in the end figures.

How you got to those figures can be as simple or as complicated as you wish to make it.

For reference I worked the way you are proposing and as long as you keep a paper trail it works fine but no doubt there are easier ways.

 

[Chris Ashdown]

As with most things you either do it properly or screw up down the line

If basic accounts are to hard to learn then you must question if business is really for you and at the prices and simplicity of the popular software its hard to believe you cannot learn how to use the basic software

Regarding costs look at quickbooks one of the popular packages, with prices from £5 a month https://quickbooks.intuit.com/uk/pricing/

There are plenty of books available on starting a business and lots of Youtube videos on low cost accounting software how to's

 

[Reven1987]

As with most things you either do it properly or screw up down the line

If basic accounts are to hard to learn then you must question if business is really for you and at the prices and simplicity of the popular software its hard to believe you cannot learn how to use the basic software

Regarding costs look at quickbooks one of the popular packages, with prices from £5 a month

There are plenty of books available on starting a business and lots of Youtube videos on low cost accounting software how to's

Yes Chris I totally agree with You.

But

I checked the quickbooks and the cost is 5£ but integration with ebay 24.99 £ / m. I will not issue any invoices because everything will go through eBay, so do I really need that type of software at that stage? The basics of accounting are not complicated but I just feel more confident if I understood everything right at the first time. Selling on ebay is not my first source of income. Adding income from ebay and costs from paypal once a month is 2min work also. Later on if evrything will be running smoothly I will definetly use it.

A few years ago I ran a car dealership and I had to close it after 2 years because I didn't look at the running costs. That's why this time I pay attention to everything and If don't need something I am not buying it.

Best regards and thank you for your reply.

 

[Maxwell83]

Yes Chris I totally agree with You.

But

I checked the quickbooks and the cost is 5£ but integration with ebay 24.99 £ / m. I will not issue any invoices because everything will go through eBay, so do I really need that type of software at that stage? The basics of accounting are not complicated but I just feel more confident if I understood everything right at the first time. Selling on ebay is not my first source of income. Adding income from ebay and costs from paypal once a month is 2min work also. Later on if evrything will be running smoothly I will definetly use it.

A few years ago I ran a car dealership and I had to close it after 2 years because I didn't look at the running costs. That's why this time I pay attention to everything and If don't need something I am not buying it.

Best regards and thank you for your reply.

Honestly, at £25p/m it sounds like a bargain if it will save having to enter things manually and potentially screwing up. Not everything that costs money is an 'expense' - if it saves you time and/or mistakes its an investment.

 

[Reven1987]

It is 2 min job at the end of the month

 

[SteveHa]

I'm sure Nicola will be along soon to suggest a couple of alternative options, and I'd be tempted to agree with her in your case.

HMRC are increasingly moving to a completely digitised system, with MTDfVAT being just the first stage. Their intention is to roll it to to accounts and self-assessment. Getting in on the ground floor with digital records at the outset will mean less of a transition later for you.

 

[Darren_Ssc]

One of the proper accountants on here mentioned about charging more if a client was using spreadsheets due to more work required. Other than that, I think you're fine?

Obviously x per month over a few of years is likely to be a lot more than the few quid an accountant is going to charge you for the extra couple of hours work.

 

[Reven1987]

One of the proper accountants on here mentioned about charging more if a client was using spreadsheets due to more work required. Other than that, I think you're fine as you are but bear this in mind. Obviously x per month over a few of years is likely to be a lot more than the few quid more an accountant is going to charge you for the extra couple of hours work.

I'm at the begining, in future (after a year) I will probably start using software or just pass everything to accountant.