Checklist 1 – what information goes where
In this section there are a series of checklists. Keeping books and records is confusing at first, although like most things, once you’re used to it, it’s easy. These checklists are designed to get you through the difficult stage as fast as possible.
Each checklist deals with a situation you might find yourself in when preparing your accounts, and then tells you what to do.
Checklist one- what should be where?
This checklist says what accounting information should be in each of the books or spreadsheets that have been described.
1. Sales book
This should contain a list of all invoices raised to customers in invoice number order.
2. Bank Receipts Book
This contains details of all receipts into your business bank account whether they are from sales invoices, personal money paid in, sundry receipts or bounced cheques. You will get the information to complete the bank receipts book from the paying in book you use your business bank account and from your bank statement. The bank receipts book will also show the VAT element included in all sales invoices that have been paid. You will find out how much VAT was included by looking at the entry for the invoice in the sales book.
This information should be written up in date order with any additional entries arising from your bank statement being entered at the end of each month.
3. Bank Payments Book
This contains details of all payments from your business bank account whether paid to suppliers, yourself, or for bank charges and bounced cheques. You will get the information needed to complete the bank payments book from your cheque book stubs and your bank statements.
The bank payments book also shows the VAT included in the payments made. Details of the VAT should be taken from the supplier invoice.
The information in the bank payments book should be entered in the order of your cheque book with additional entries arising from your bank statements being entered at the end of the month.
4. Petty Cash book
This contains all the items paid for by cash or cheque from your personal bank account or credit card, whether business or personal. These will usually be small items. If you do not have a receipt you should use a petty cash voucher. VAT should be analysed if VAT has been charged to you.
For further information, please contact us on 03332 401 333 or email enquiries@kirknewsholme.co.uk
