Every company needs to learn basic bookkeeping for new business start ups. You will need to learn some basic skills in this area to keep a good track on your finances. This is then used to work out your tax and VAT bills, as well as helping you see how your company is performing.
To help you run a well-organized accounting system there are plenty of excellent office software packages available. These systems can help with the calculations and can be simpler to use than more traditional methods which were in place before computers became so important to business. You can attend a course to help you learn the skills needed to run these systems.
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.
You would have a ledger for sales. In here all records are kept such as dates, payment information and description. You may offer some clients credit, and details of this are also kept in this book.
The purchase ledger records everything which your company purchases. This can be assets, items, and services which have been paid for out of the company accounts. Wages can be recorded in their own book where you can put all of the salary details and N. I contributions.
Keep every single receipt that comes in and also all of the invoices that you have sent out. Separate the ones which have not been paid, from those which have been settled fully. To help you organize everything it is a good idea to hire a bookkeeper for a few hours a week at least. This can help you keep on top of the accounting and run a more efficient company.
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