Friday, November 2, 2007

Do you want to save money on your accountancy bill ?

Follow these tips and you will reduce the time I spend doing your books and so save yourself money.
  1. Make sure you get a receipt/invoice for every business payment that you make

  2. Record all of your takings and if you take money out before your count up (e.g. from the till to make a payment), be sure to include this amount in your takings as well

  3. Clearly record any non-sales income, in particular your own money that you bring into the business

  4. Write up your chequebook stubs fully: payee, item purchased, supplier invoice number

  5. Don’t use your business money to make private payments, but draw out round lump sums e.g. a few hundred pounds once per month. These are your drawings, and use your private bank account to make private payments

  6. Keep and file everything i.e. bank statements, sales invoices, till rolls, purchase invoices/receipts (file these in payment date order)

  7. Use separate files for items
    • Paid by cheque/switch, DD
    • Paid by cash
    • Paid from private money

  8. The best filing system is lever arch files, cardboard dividers and punched "poly" pockets

  9. Keep a cashbook:
    For bank payments - record the date, cheque number, the total amount in a "total" column, (VAT if applicable in a "vat" column), and the (net of vat, if applicable) amount under a relevant "expense" column.
    For receipts (i.e. money into the business) show the total banked, and where it came from

  10. Add up the entries in the cash book columns, then check your additions by ensuring the totals of the individual "expense" columns = the total of the "total" column.

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