Cashbook TipsCASHBOOK TIPS:-The cashbook only represents
payments MADE and RECEIVED. Adjustments are needed in yourfinal
accounts to reflect accruals (expenses incurred but not paid at
year end) and prepayments(expenses paid but extending into the next
accounting period).Use as many analysis columns as you can - 10
spare ones are included in the "expenditure" sheetand you can add
in as many as you want (but these will have to be added to the
'profit indication'sheet). Analysing your expenses in as much
detail as possible saves your accountant having todo so!Give each
receipt a number and put it on the receipt and in the "receipt
folio no" field of theexpenditure sheet. Filing the receipts in
number order in a ring binder means we can then easilyturn up a
specific receipt.If you are unsure where to put an entry use
"sundry" - we can then determine how to analyse itas the receipt
should be easily found via your "receipt filing number",Make sure
the "BANK" account columns of both income and expenditure reflect
everything thathas gone through the business account in the year -
if you miss anything out we have to find itwhich can take time.
Your bank account will always be reconciled by us at year end as we
havethe necessary information - any "cash" expenses ommitted cannot
be traced and the onus is onyou to ensure they are
recorded.REMEMBER - the revenue stance is "no receipt - no claim"
ALWAYS ensure you obtain a receiptas this is your proof to the
expenditure, Allowable expenditure is that incurred wholly
andexclusively in the course of running your business -
entertainment is a grey area and werecommend the receipt be backed
up with details of who was entertained and why. Very
littleentertainment is allowable for tax and you could end up with
a personal tax bill to boot!Cashbooks are simple to operate but we
appreciate the first few months may be a bit confusing -call us on
07778 590056 if you have a query, even if its just for confirmation
you are using the rightcolumn(s). You may wish to email us the
cashbook after you have made the first entries so wecan check
everyting is in order.Steve MasonSJM Accounting Services51 Wilmslow
RoadCheadleCheshire SK8 1HG07778
[email protected] has been
taken in the production of this cashbook but incorrect data entry
or yourmodification of any sheet(s) may render the 'profit
indication' and subsequent estimatedtax to be inacurate.We accept
no responsibilty for any loss occasioned through the use of this
cashbook.
[email protected]
Income (money in)Incomeenter client titleenter year end dateONLY
ifVATregisteredDateRefDescriptionCashBankSalesSundryOtherInterestCap
IntroRefundLoan AdvanceHP
AdvanceVATCheck0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
&APage &P of &NSteve Mason:The date the money was
paid into the bank, not the actual invoice dateSteve Mason:eg paing
in slip number or 'BACS', 'Tfr' etcSteve Mason:customer name &
invoice no(s) or other description eg 'gross interest', 'net
interest', 'money from personal funds' etcSteve Mason:The amount of
cash and/or cheques actually paid into the business BANK
accountSteve Mason:The amount of money received in cash and NOT
paid into the bank accountSteve Mason:The invoiced amount EXCLUDING
VAT (this goes in the 'VAT' column to the right)Steve Mason:Non
sales income or anything you are unsure ofSteve Mason:Amounts
paid/introduced to the business from your personal fundsSteve
Mason:The amount of any loan receivedSteve Mason:The amount of VAT
included in the receipt (if applicable)Steve Mason:If not ZERO then
the analysis columns do not equal the cash and/or bank value
enteredSteve Mason:State whether received NET of tax or GROSS in
the description fieldSteve Mason:The amount received to finance a
purchase via HP
Expenditure (money out)Expenditureenter client titlegross
invoice divided by 1.20 = Net amount (difference = the VAT)enter
year end dateReceipt(if registered for VAT then the amounts entered
here are NET - the VAT goes in the VAT column to the far right)only
ifFilingPersonalMaterialMotorTravel &Cmpter/InternetRent,
RatesLight &Repairs &BankBankHMRC
PAYESpareSpareSpareSpareSpareSpareSpareSpareSpareSpareFixedLoanHPHMRC
VATregisteredDateChq
RefNoNarrativeCashBankDrawingsPurchasesPetrolExpensesTelephoneAccomodationEntertainmentStationeryPrintingPostageAdvertisingCosts&
WaterHeatRenewalsInsuranceChargesInterestWagesPaymentsExpenditureExpenditureExpenditureExpenditureExpenditureExpenditureExpenditureExpenditureExpenditureExpenditureSundryAssetsRepaymentsRepaymentsPaymentsVATCheck0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
&APage &P of &NSteve Mason:Actual date the payment
was made NOT the original invoice dateSteve Mason:Suitable
description eg cheque no, 'DD', 'BACS', 'S/Order' etcSteve Mason:If
you have a receipt enter a ref no here, put the same no on the
receipt and file in numerical order in a ring binder etcSteve
Mason:Who paid to, what for, invoice no(s) etcSteve Mason:If not
ZERO then the analysis columns do not equal the cash and/or bank
value enteredSteve Mason:amount of payments NOT from the business
bank account eg cash, personal credit card, personal chequeSteve
Mason:The total value of the payment as will be seen on the bank
statement - if more than one invoice is being paid they can be
stapled ('batched') together and just the one receipt filing no
usedSteve Mason:The value of any payments made of a personal nature
(ie NOT business related), or monies taken for your own use. Also
include self assessment tax payments and your own national
insurance payments
Sole traders take 'drawings' instead of wages and these are not
deducted from profitsSteve Mason:If sweets, papers, cigarettes etc
included that amount (incl VAT) should go in the 'drawings' column
as it is not business relatedSteve Mason:Repairs & Servicing,
Road Tax, Insurance etcSteve Mason:Mobile and business phone
line.Internet costs go under 'computer/internet' to the right. If
broadband charges are included on, say, a virgin media statement
then TV costs (incl VAT) should not be included or should be put
under 'drawings'Steve Mason:Relevant to business premises NOT your
home billsSteve Mason:Relevant to business premises NOT your home
billsSteve Mason:You can rename this column (and the next nine) to
any other titles relevant to your business.
Adding in any new columns is not a problem but you will need to
make sure they are reflected in the 'profit indication' sheet.Steve
Mason:Anything you are unsure of. A good description entered in the
'description' column to the left will help us in determining the
nature of the cost and it's treatmentSteve Mason:As shown in the
bank statementSteve Mason:As shown in the bank statementSteve
Mason:If VAT registered enter here the amount of VAT included in
the payment.Payments of VAT bills go under the 'VAT payments'
column to the leftIf you are NOT vat registered you will not need
to use this column.Steve Mason:The amount of a VAT bill paid to
HMRCSteve Mason:You cannot reclaim VAT on entertainment.The
entertainment entered here should be that incurred in the course of
business and it's a good idea to write on the back of the receipt
who was entertained and whySteve Mason:Business travel - eg hotels,
train/air fares, taxis, car parkingSteve Mason:eg equipment
repairs, small tools etcVehicle repairs go under 'motor
expenses'Steve Mason:Give a good description to the left eg public
liability, professional indemnity etcVehicle insurance goes under
'motor expenses'Steve Mason:As showing on the bank statementSteve
Mason:As showing on the bank statementSteve Mason:The net amount
paid to employees or subcontractors.Your own personal 'wages' go
under 'personal drawings'Steve Mason:The amounts of any payments
made to HMRC in respect of tax/nic deductions from employees or
subcontractorsSteve Mason:goods for resale, stock or used in the
production of items soldSteve Mason:Generally an item expected to
remain in use for more than 12 months eg Car, Van, Computer &
office furiture/equipment
Sales invoices raisedenter client titleenter year end dateSales
Day Bookenter ALL sales invoices in date/number order and date
payment receivedkeep copies of all invoices in a ring binder in
numerical order.(if registered)CumDateInv NoCustomerNetVatTotalDate
PaidO/DueT/Over0.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.0000.000.000.000.000.000.00
Steve Mason:The actual invoice date not necessarily the date
payment was receivedSteve Mason:The amount invoiced excluding
VATSteve Mason:The total VAT charged (if VAT registered)Steve
Mason:calculated automaticallySteve Mason:Enter the date payment
was made in cash OR the date paid to the bank.Where no date is
entered here you can keep track of customers still outstanding
Profit Indication - guide onlyenter client titleenter year end
dateEstimated Profit & Loss Account (financial year to
date)Turnover0.00Purchases (incl stock changes)0.00Gross
Profit0.00Only the fields in RED should need manually
enteringOverhead ExpensesExpenditure (excl VAT if registered) in
this cashbookMotor0.00relating to previous
year(s)0.00Telephone0.00Travel & accommodation0.00Purchase
invoices (excl VAT if reg'd) that have yet to be
paid0.00Entertainment0.00Printing, postage &
stationery0.00Fixed assets value from last balance
sheet0.00Advertising0.00Computer & internet0.00Closing stocks
from last year end balance sheet0.00Rent, rates &
water0.00Light & Heat0.00Estimated stocks (excl VAT) at
present0.00Repairs & renewals0.00Insurance0.00Based on the
estimated profit to date yourBank Charges & interest0.00tax and
national insurance liability may be:0Loan & HP interest
estimate0.00(based on tax rates for 2012/13)(Approx)Wages0.00This
is a rough tax estimate as several other factors may have
toSundry0.00be taken into account, including "on account"
payments.Expenditure0.00Expenditure0.00Expenditure0.00If you are a
higher rate tax payer the liabilty will be more if
youExpenditure0.00receive dividends and/or interest or income from
another source.Expenditure0.00Similarly, as a higher rate taxpayer,
savings can be madeExpenditure0.00in respect of contributions to a
personal pension plan.Expenditure0.00Expenditure0.00(Introductions
to an independent financial adviser can beExpenditure0.00made upon
request if you wish to set up a personal
pension)..Expenditure0.00Depreciation0.000.00Net
Profit/(Loss)0.00PBT0.00Depn0.00AIA0.000.00PA-8105.00STI-8105.00IT-1621.00NIC0.00-1621.00Class
4 NIC:-UEL0LEL00x 9%0.00Excess over UEL0x 2%0.00Income Tax:-first
34,370-8105.00-1621.00over 34,3700.000.00
Year End ProvisionsProvide details here at financial year end
for such things as:Expenditure incurred but not paid until the
following financial year ("Accruals")eg - purchases from a supplier
on credit and not yet paid.Expenditure incurred during the year
that extends beyond the financial year ("Prepayments")eg - rates,
insurance, car tax/insurance etcadvise date expense starts, full
cost and expiry date.Work in progress - amounts reasonably able to
be invoiced but not done so before the end of the financial
year.Stocks - if you carry stocks you should perform a stocktake at
the close of business on the final day of yourfinancial year. The
valuation is to be based on the original cost (excluding VAT) or
the estimated sale price (excluding.VAT) if it is lower than the
original purchase price (slow moving or obsolete items).A.mounts
paid OUTSIDE the business bank account and not reflected as "cash"
payments in the cashbookAny other factors considered relevant in
the preparation of your accounts.
VATVATRegistration is voluntary unless your turnover has
exceeded 77,000 in a rolling 12 month period.VAT liability is
calculated quarterly with the payment falling due by the end of the
followingmonth (the difference between VAT you have charged out and
the VAT you have suffered onpurchases).The usual basis is to
calculate on invoices actually raised in the quarter less purchase
invoicesreceived. However, this means that you actually pay over
VAT on sales invoices that have not yetbeen paid by your customers
and can have an impact on cashflow. To counter this you can electto
use the 'cash accounting scheme' if your turnover is below 1.35m pa
- whereby you onlyaccount for VAT on actual receipts and payments
in the quarter.Using the 'cash accounting scheme' is simple to
administer with this cashbook - simply cutand paste the relevant
quarter from the 'income' and 'expenditure' sheets into a new
worksheet (it isrecommended that you include your quarterly VAT
workings in this cashbook so we can checkeverything is in order at
year end).www.hmrc.gov.uk/vat/start/schemes/cash.htmAnnual turnover
below 150,000 pa ?Businesses that have very little input VAT (the
VAT paid on purchases) may find the 'flat ratescheme' to be
advantageous. On this scheme you do not recover any VAT on
purchases (unlessyou have bought a singular capital asset costing
over 2,000 incl VAT) and pay over a set % ofyour GROSS turnover
(that is the net amount PLUS the VAT charged out at the standard
rate).An example of how this scheme could be of benefit is shown
here:Invoices raised in the quarter10,000Plus VAT at the standard
rate2,000Gross Turnover12,000If your flat rate scheme % is, say,
13% then you pay over 1,560 (12,000 x 13%) NOT the 2,000you have
actually charged your customers. Whilst this generates a VAT
'profit' of 440 you haveto bear in mind the VAT on your purchases
that has not been recovered.The quarterly calculation is extremely
simple - cut and paste the quarter from the 'sales invoices
raised'worksheet and apply your 'flat rate' % to the gross
turnover.www.hmrc.gov.uk/vat/start/schemes/flat-rate.htmSteve
MasonSJM Accounting Services51 Wilmslow RoadCheadleCheshire SK8
1HG07778 [email protected]
www.hmrc.gov.uk/vat/start/schemes/cash.htmwww.hmrc.gov.uk/vat/start/schemes/[email protected]
