[Tosh]

I've spent this afternoon gathering up my receipts for stuff I've paid out for, fuel, parking, window cleaning supplies... etc and have stapled them individually onto an A4 peice of paper.

I've then highlighted the date and the amount paid out and put them into date order in preparation for entering the information onto a spreadsheat, in columns, which is probably another three-or-four hour job.

I'm an ex-accountant (not a tax accountant) so I know how to manage financial information; but I wonder how you lot account for your expenditure?

How do you do it?

[Ian Lancaster]

I pay my accountant £200 a year (inc vat).

All income and expenditure is recorded in a multicolumn cash book, all invoices are allocated consecutive numbers and cross referenced then the whole caboodle goes to the accountant and he waves his magic wand

[Tosh]

I pay my accountant £200 a year (inc vat).

All income and expenditure is recorded in a multicolumn cash book, all invoices are allocated consecutive numbers and cross referenced then the whole caboodle goes to the accountant and he waves his magic wand

Ian,

You do all the work; the accountant does the really easy bit which is just entering the figures into your tax return.

The only work involved here is this bit:

All income and expenditure is recorded in a multicolumn cash book, all invoices are allocated consecutive numbers and cross referenced

Instead of the 'multicolumn cash book', I use an excell spreadsheet (same thing, but the spreadsheat adds everything up and it's easy to correct a mistake; tippex is not allowed in financial accounting  ).

As for cross-referencing, it's easy, just put your receipts into date-order and give each one a PV (payment voucher) number starting from 1 (just number them in pen from 1 upwards in the top right-hand corner of each one; remembering you should make them A4 sized by stapling them to an A4 sheet of paper) and ensure this is the same as your column entry.

Ian, you basically do exactly the same as me.

I was just wondering if there was a simpler way!

(There probably is an easier way; do it at the end of each month, rather than leave it till the end of the accounting year!)

[dai]

I put each bank statement in it's own clear plastic sleeve, the receipts are sorted out by date and go in that months sleeve with the statement.
Expenses are also written down in my ledger along with income etc.
I think a lot of us make the accountants job too easy, they charge the same for the guy that goes in with a plastic bag full of receipts and invoices and his income figures.

[ok cleaning]

 I pay to my accounted to do everyting for me so i dont spend any time for this side of the business

[ronnie paton]

i try to keep on top regular, i use reciepts and bank statements has some things dont come with a reciept.

I use a spread sheet and give each expenditure a folio~(think this is what its called) number and put it into the right catergories, i also put folio number on bank statement and then hand it all over to accountant.

i guess the accountant does the easy work but she also knows of things which i can add to save money on my bill./

[scud]

  My mrs does it for me - DAILY - everything is recorded and sorted, it takes 10 minutes when it is time to fill out the returns, which are done the day they hit the mat.
 
  Nothing like getting it done and out of the way.

[cardo]

I've spent this afternoon gathering up my receipts for stuff I've paid out for, fuel, parking, window cleaning supplies... etc and have stapled them individually onto an A4 peice of paper.

I've then highlighted the date and the amount paid out and put them into date order in preparation for entering the information onto a spreadsheat, in columns, which is probably another three-or-four hour job.

I'm an ex-accountant (not a tax accountant) so I know how to manage financial information; but I wonder how you lot account for your expenditure?

How do you do it?

This is how i do it . I spend about 2 days each year sorting it all out. I don't  really mind as its a welcome change sitting down and concentrating the mind for a while... plus you know exactly where you are with this stuff.

[cherubs cleaning]

put it al in a tescos c/bag



and let them sort it



jerry

[Tosh]

put it al in a tescos c/bag

and let them sort it

jerry

Tescos are pretty good, I even use them to look after my dog's health insurance, but I didn't know they provided this service!

Would I get a 'green point' if I used one of my own re-useable bags?

[L.J.Thorpe]

everything relating to business is paid for out of seperate bank account
receipts for anything needed while out on the round (fuel usually but sometimes running repair stuff)get filed in the glove box and collated every few months
takes a couple of evenings to sort it all out at end of year

[Tosh]

everything relating to business is paid for out of seperate bank account

Sometimes you have to use cash, for example loose change for parking?  You may need a spray for an inside Georgian job; do you really want to use a card for a purchase under £2?  If I want to go to Bristol, I have to pay a toll on my return jouney; cash only!  I bought a £15 padlock from my local market for the chain I secure my ladders with; they wont take a card.

There's also no requirement to pay for stuff from a seperate account, though I know some business accounts give you a credit card for this sort of stuff.

You will still need receipts, no matter how you pay for stuff for your business.  So the account you pay for your stuff from is irrelivant.

[L.J.Thorpe]

maybe irrelevant but MUCH easier if its seperate
as for the cash issue i use cash from the days "purse" for emergency or on the hoof purchases and then adjust amount banked that week accordingly
and yes i DO keep receipts for everything
a 2.99 invoice book bought for cash last week and a 1.35 jubilee clip today(used on transfer hose and bought from a garden centre today)

[Moderator David@stives]

I use George for everything,  I enter every expence into George as it occurrs at the end of the year I print out  an expence sheet, which i double check aginst my receipts.

As an Invoice or receipt comes in I put it to the left hand side of my laptop, once i have paid it i write paid on the invoice, when I enter it ito George I write  entered on the Invoice then put it in a box folder for that tax year.

At the end of the year< i Give my accountant the box and the print outs from George and he does everything else.

[Tosh]

Bump, for Squeaky's benefit!

 

[macmac]

sort it all out in one day at the end of each year, print a very basic statement up in word & give it to accountant.

Tony

[Tosh]

sort it all out in one day at the end of each year, print a very basic statement up in word & give it to accountant.

Tony

Why give it to an accountant?

For your average sole trader, the majority of the work is 99% done by the person himself; the accountant just takes your figures and inputs them onto the tax form!  It must take him about 10 minutes; no more!

Filling in the form is the easy bit, it's your annual accounting of your expenses and profit that's the work involved.

[ronnie paton]

a good chartered accountant will save you money they will know of things that can be included to bring your tax bill down that's why alot of spend 200-300 on account

[Tosh]

Ronnie,

I reckon with a little bit of reasearch, you can do all that stuff yourself.

The principle is, anything you spend on your business is an expense, though I do admit there's grey areas when stuff is dual purpose; for example I could by a ditgital camera and put that through my books as an expense, since I may want to use it to take photos of accounts, post them on this forum and ask how much to charge.

But it's still a bit dodgy and to be honest for your average sole trading window cleaner, you're expenses are simple; unless you want to put lots of 'grey area' items through your books.

Basically I claim for all the boring usual stuff and even though I have an office that fits the criteria I've read on this forum (ie no bed; it is used as an office), I don't claim a portion of my mortgage/heating back. 

My biggest expense is always fuel!

And it's 'hissing' down here! 

[ronnie paton]

iv just gone ltd so i think ill defo need one and i do hope in time to do some courses to get a better in sight but i fee l at the mo its money well spent.

maybe one day when i do have  ago ill be with you but at the moment i feel they do things fro me i couldnt do my self.