Running a freelance business or small company will require basic bookkeeping for new business start ups. This is the keeping of financial records to help you keep on top of your finances, fill in complete tax reforms and complete balance forms.
If you are computer literate then you can find some excellent office software which can be used very effectively. If you are new to these types of programs it is a good idea to take some time out to learn, perhaps with the help of a tutor.
The traditional method of bookkeeping is the best way to get your ahead around the things which need to be recorded. A cash book is for all of the finances which come into the company and leave the accounts. Think of this like your business bank statement.
When you sell and item, products or services this will need to be recorded along with the price. This is what a sales ledger is for. You can note any credit agreements in the sales ledger as well as customer information, and the dates the transaction was made.
Purchases that your businesses make are recorded in a similar fashion in a separate ledger. Everything needs to be noted down and this can be used in your tax return to help reduce tax and VAT bills at the end of the financial year. It is a good idea to create a book for wage and employee details also.
All receipts must be kept as these can be used in your tax returns. Invoices should be stored also, keep unpaid ones separate from ones which have been paid in full. If you can afford it you can benefit greatly from hiring the help of a bookkeeper. This can be beneficial even if they are only employed for one or two hours a week.
If you are computer literate then you can find some excellent office software which can be used very effectively. If you are new to these types of programs it is a good idea to take some time out to learn, perhaps with the help of a tutor.
The traditional method of bookkeeping is the best way to get your ahead around the things which need to be recorded. A cash book is for all of the finances which come into the company and leave the accounts. Think of this like your business bank statement.
When you sell and item, products or services this will need to be recorded along with the price. This is what a sales ledger is for. You can note any credit agreements in the sales ledger as well as customer information, and the dates the transaction was made.
Purchases that your businesses make are recorded in a similar fashion in a separate ledger. Everything needs to be noted down and this can be used in your tax return to help reduce tax and VAT bills at the end of the financial year. It is a good idea to create a book for wage and employee details also.
All receipts must be kept as these can be used in your tax returns. Invoices should be stored also, keep unpaid ones separate from ones which have been paid in full. If you can afford it you can benefit greatly from hiring the help of a bookkeeper. This can be beneficial even if they are only employed for one or two hours a week.
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