Simple Bookkeeping Spreadsheets

Accounting software is used by accountants to enter many complex financial transactions into the financial books of account and is almost invariably based upon double entry bookkeeping principles. A major advantage to those companies and the finance staff is the extent to which financial information contained in the database can be queried for financial control purposes.

An accountant needs to not only ensure the financial records are accurate but also retrieve any part of the accounting records to answer accounting questions on the accounts, provide a legal basis for the transactions and report the financial statements at regular periodic intervals.

The small business has different accounting needs which are better described as bookkeeping than accounting. For non limited companies that do not need to produce a balance sheet then a simple income and expenditure account can be produced much simpler using single entry bookkeeping principles.

Less financial control is often required from small business accounting software as the bookkeeper is often the owner manager who already has an intimate knowledge of each transaction. Books are still required for tax purposes and a solid requirement of preparing a set of financial books for tax purposes is that each entry is supported by third party evidence.

Examples of third party evidence would be sales invoices, purchases invoices and bank statements. Financial transactions where no receipt exists can still be entered in the business books although all transactions not carrying third party evidence could subsequently be disallowed for tax purposes and certainly would be if the amounts entered indicated unusual income or expenditure.

Producing an income and expenditure statement using single entry bookkeeping is little more than making two lists of financial transactions. Those lists being one of sales income received from sales invoices or receipts issued to customers and the other of purchase expenditure being from purchase invoices received from suppliers.

To record sales income it would not normally be sufficient to simply add up the total of the invoices as such a summation does not leave an audit trail of the items which have been included. A written list of sales invoices does provide an audit trail.

Sales accounting for a small business accounting purposes can be either a manual list of the sales invoices or by using a spreadsheet package a list can be made on a bookkeeping spreadsheet. Using a spreadsheet for the bookkeeping has advantages as simple formula can be used to add up the column totals.

The essential information to enter for a sales invoice would be the date of the sale, name of the customer, sales invoice number if applicable and optional a brief description of the item sold. In the next column would be the total sales invoice amount. If items like value added tax are required to be accounted for then an additional column would be required to accommodate the vat or sales tax accounting.

A further small complication might be if at the discretion of the small business owner additional information was required from the bookkeeping records to indicate the totals of the different types of products and services then additional columns could be incorporated to enter the net sales figures in these columns.

There it is then, a simple list of sales invoices to satisfy the sales accounting requirements for a small business where a balance sheet is not required.

On the expenditure side of the business the bookkeeping can also be a simple list of the purchase invoices and receipts showing the amount spent. The list should also produce an audit trail by showing the date of the purchase invoice, name of the supplier, purchase invoice for identification purposes and the total amount spent.

Usually tax returns are the main purpose of producing small business accounts and invariably some analysis is required to show what the expenses have been spent on. That is not difficult to achieve and as with the sales accounting the owner manager can add additional standard columns to the bookkeeping spreadsheet.

The expenditure analysis columns do not need to be a different column for each type of expenditure. It is better to set up and group the analysis columns in general headings which can accommodate all the expenses.

Such columns may include stock, other direct costs, premises costs, general administrative costs, transport and delivery costs, repairs and maintenance, travelling and hotel costs, motor costs, bank and legal costs and other expenses. It is better not to enter too many items under a general heading of other expenses as this is more likely to be investigated as the type of expense has not been precisely identified.

One important column to also include is for asset purchases as fixed assets usually have different tax rules applying to the claim of the expense against tax and should be separated from other expenditure.

Having set up two bookkeeping spreadsheets the task is then to produce the income and expenditure account by collecting the totals of each of the analysis columns. The sales total is the sales turnover from which is deducted the totals of each of the expenditure classification totals with the result being the net profit and loss of the business.

Where stock is bought and sold a further adjustment may be required to account for the difference between opening and closing stock. This is done by taking a physical stock check and valuing the stock at the start and end of the financial period.

On the income and expenditure account adjust the stock purchases figure by adding the value of the opening stock and deducting the value of the closing stock. The result is not the stock purchases total as shown in the bookkeeping spreadsheets but the cost of the goods which have been sold to produce the sales turnover being reported.

Simple bookkeeping for a small business accounting purposes can be two lists of sales and purchases supported with sales invoices and purchases invoices.

Terry Cartwright a qualified accountant at DIY Accounting in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions with single and double entry Bookkeeping Software for both limited companies and self employed business

Why It Is Easy to Make Money Online

Simply put, it is easy to make money online because you can transfer information directly to a buyer, anywhere in the world, in a matter of seconds. If you are selling information or a product that can be downloaded, you have an advantage over those who operate otherwise.

Consider the following elements when deciding how to make money online: Your Ultimate Goal, Your Personal Situation, and Intended Investment. These three elements will match you to the right type of money-earning opportunity—and there is something for everyone.

What is your ultimate goal? Ask yourself how much you want to make, what you want to accomplish with more money, how long you intent to work toward your goal, and at what intensity. You could want a six figure income in six months, or you could want to double your current salary. Make that decision now so it is clear to you.

What is your personal situation? Ask yourself if your family—your children, your parents, your wife, etc.—will be a source of stress or support. Will they give you the time you need to work your business? Do they want to partner with you? Will they bring negativity to your focus? Be sure and lay down some ground rules and expectations ahead of time so that all of your family is on the same page.

How much can you invest in changing your financial future for the better? It is okay if you can invest nothing but time, as long as it is consistent with your ultimate goal. Expecting to make six figures in six months without investing a dime is not likely. However, a $60 investment can yield you plenty.

Regardless of your personal goal, situation, and investment, the important thing to remember is that you can make money online. So jump right in and enjoy your success as I am enjoying mine.

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Lesley graduated with a bachelors of science degree in Business Marketing from the University of Delaware. She has been able to transform twenty years of marketing, sales, and event planning positions into successful online marketing strategies. Lesley continues to help people make money online every day.

Work at Home : Tips On How To Be Successful To Make a Living at Home

When you work at home, you often need some ready cash in order to get started. The financial backing may be to pay more a membership in a listing service, or to receive some needed training, or the purchase an e-book that tells you about methods or procedures that will help you toward your financial goals. You may even need to purchase additional equipment in order to do the job you want to do. If you are as strapped for cash as many people who begin the journey toward financial freedom at home, you are probably looking for a way to get started in your chosen business. Here are some ways you can use to get that initial boost financially in order to get started quickly.

Use your nest egg

When you work at home, you can plan ahead for your project by setting aside a few dollars from each paycheck or by cutting back on a less than vital expenditure and dedicating the savings toward your new project. After all, the enjoyment of anything that you succeed at is in direct proportion of the effort that is required to achieve the success. It is surprising how much can be put toward savings when you make a dedicated effort toward a goal.

Sell something you don't need

Would you sell an unneeded item to provide the needed equipment and resources to work at home? Most people would rank their priorities so that they could accomplish something by getting rid of an item they no longer need. You could easily have a yard sale and get a few hundred dollars toward your goal in just a single weekend. Some areas have consignment auctions where you take your unwanted goods to an auction house and receive the cash after the sale, less the amount for auctioneer's fees. Of course, you can also offer items at one of the online auction sites.

Tap your friends and family

Even if your friends and family can't come up with cash to help you work at home, they may be able to help in other ways. Perhaps their creative talents can be used in designing a web site or a product label. Maybe they will offer to provide labor temporarily to ship your product. Perhaps they have a computer or printer that they are willing to let you use temporarily or permanently. Sometimes family members are willing to come up with a short term low interest loan to you so that you can get your business started properly.

Barter

Barter arrangements or no money down arrangements are more common and easier to obtain than you might think. If you offer to trade services for goods, or vice versa, you can often set up a scenario where your work at home cash outlay will be much less than you would normally expect. Remember, not only do you need to find backers for setting up your business, but you must create a cash flow that will allow you to continue your business.

Choosing Work from Home or Work at Home as your major information source on work from home programs makes a lot of sense. You'll find numerous tips as well as other valuable information and a FREE Report here to learn more.