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Managing Your Business Accounts: How to Keep the Books and by Peter Taylor

By Peter Taylor

"Managing Your Buisness bills" presents a step by step consultant for the small enterprise to hold out double-entry book-keeping and accounting systems. issues contain getting begun, accounting for VAT, double-entry book-keeping, doing the wages, taxation and working with specialist advisers.

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Example text

But if he takes his family out for pleasure the car is being used for private motoring. In such cases, you should: record the whole of the cost of the expense disallow part for taxation purposes (see Chapter 10). Drawings. A subject which can cause problems is that of drawings taken from a business. From time to time the owner may want to draw money out of the business for his own private use. As this expenditure will in some way affect the business it must be recorded in the records. If Mr Taylor draws £500 from the partnership bank account for his own use then this must be recorded by the business, otherwise the bank account would not agree with the bank statement.

Let's consider each in turn. The Size of the Business. There can be no hard and fast categories for size of a business. But obviously a national chain store such as Marks & Spencer will have a more sophisticated accounting system than a local trader with a market stall. The point at which you need more complicated records will also depend partly on the type of trade. However, here are some guidelines to get you started: Page 20 If you are owed money by more than about 15 customers then you should consider starting a sales ledger system with the appropriate sales day book.

The Size of the Business. There can be no hard and fast categories for size of a business. But obviously a national chain store such as Marks & Spencer will have a more sophisticated accounting system than a local trader with a market stall. The point at which you need more complicated records will also depend partly on the type of trade. However, here are some guidelines to get you started: Page 20 If you are owed money by more than about 15 customers then you should consider starting a sales ledger system with the appropriate sales day book.

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