Tuesday, October 30, 2007

Bookkeeping Tips for Stall Holders

If you are operating a market stall as a business monitoring sales can be overwhelming. You withdraw cash as a float, you sell your product generating income, and then you get hungry. So you take some cash from the cash takings and buy some food. While wandering across the market to buy some food you notice an item you must have from another trader, and you dip into the takings again. The end of the day rolls on, and you bank your takings, but what do they represent? Float, sales, private expenditure, and business expenditure. To ensure that you are properly recording your sales you need to implement a routine daily reconciliation, identifying the 5 separate elements.

FLOAT plus CASH SALES less BUSINESS EXPENDITURE less PRIVATE EXPENDITURE

equals BANK DEPOSIT

Float ~ this is the amount that is withdrawn from the bank at the start of the day. You will be able to reconcile this amount to the bank statement.

Sales ~ at the end of the day calculate total cash Sales Income.

Business expenditure ~ keep receipts for all business related expenditure incurred throughout the day. Circle the data and the amount with a red pen, and staple them to the Sales Sheet.

Deposit ~ this is the amount that you deposit in the bank at the end of the day. You will be able to reconcile this amount to the bank statement.

Adopting this approach, will greatly assist you at the end of the month, when you or your bookkeeper reconciles your bank statements

Source: http://aniseconsulting.blogspot.com/

1 comment:

Nina Athena said...

Thank you for sharing such valuable and helpful information and knowledge! This gives us more insights and inspiration. Looking forward to seeing more updates from you.

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