Business Software » Small Business Accounting

Tally 9 Eases The Load of Small Business Owners

admin — Mon, 14 Jun 2010 04:32:42 +0000

While Quickbooks may dominate the realm of small business accounting software in the US, Tally 9 is quickly becoming a fierce competitor, especially in the international market.

As a small business owner, it is important to find a software solution that can not only manage the accounting aspects of the business, but integrate related areas such as sales, marketing, inventory and others.

Today’s changing economy demands reliable software that will not only streamline the process, but not break the bank either.

What is Tally 9?

It is small business software designed for today’s global business environment. The software affords many small business owners several benefits, including:

Multi-Language ability: You can input accounts, then view them and print them in any language you choose. In addition, you can do all this at the same time. No need to worry about other users across the map trying to access the same information as you at the same time.

Payroll: An advanced payroll system can automatically calculate an employee’s salary and generate check stubs.

POS invoices: Supports barcoding, and you can print in 40-column stationery. Also supports faster entry of data.

Use it for all your companies: Use the same software for multiple companies. No separate version for each company is needed.

Advantages of Using a Fully Integrated Software Package

When you use multiple software packages to keep track of your business’ many operations your chances for error are numerous. It requires more training for the employees using it, and double work for those doing the data entry. You will have to run several different reports and compare the databases against each other to make sure figures and results are accurate.

When using a fully-integrated software package such as Tally 9, errors and double work are virtually eliminated. You don’t have spend costly hours training on and configuring multiple systems or be concerned with them working well with each other.

This software is both affordable and easy-to-use. Check it out today.

By: Blake Allen

Small Business Consulting Services

admin — Wed, 19 May 2010 04:04:54 +0000

Investing your hard earned money in any venture is an exciting, yet formidable task. At the very onset, it is imperative to be clear about what to you want to achieve, where you want to divert funds and how you want to run the show. At the same time, you would obviously want to measure your success against set plans and goals, maintaining all accounts in the most efficient and effective manner. We at KNR are here to do all that and a lot more for you.

KNR provides the A to Z of Small Business Consulting Services . Be it basic business consulting services or complex corporate economics, investment options or market research, small business accounting software or database management, KNR will guide you through it all.

Every business set up has its unique needs. Every entrepreneur intends accomplishing certain goals in a set time frame. Setting up a business, can be a tedious job if you do not have adequate knowledge about the market scenario, economic climate or basic accounting techniques. We help you bridge the gap between where you are and where you want to be.

KNR ’s Small Business Consulting Services provide you with the mortar to build your dreams on a strong foundation. We help you with not just the basic knowledge of the “how- to” of setting up your small business, but also guide you about how to maintain a lead in the economic zone, giving you a competitive edge over others in your domain.

We understand your needs and through our business consulting services , we guide you efficiently in initiating your venture’s development and also chalk out ways to help you build upon it further, while adding to its financial value. Our job does not end at helping you set up your business; we walk you through the entire process of setting it up as well as developing it further and help you in maintaining a lead in the business world.

At KNR , our motto is to provide you with the best knowledge, the best approach, and the best techniques to make your business the best it can be. We provide you with detailed business plans, marketing strategies, small business accounting software and market research, all under one roof.

An important aspect of any business is “funds”. Capital is one of the main inputs in any business structure. From the initial investment to the day to day working, capital is required at all steps to keep all operations running smoothly without any hiccups. For someone who’s not well versed with the corporate world, the idea of putting all your life’s earnings into a business plan can be quite nerve wrecking. We know how important it is for you to be sure about what you’re investing in, how you’re going to meet targets, whether it will be profitable or not, how long would it take for you to start getting returns on your investment, what would be the right time to launch your business, how much added capital would you require to keep the financial machinery working, how favorable is the market situation for your business purposes etc. Our consultants will provide you with all the information that you need to have before and after the sailing of your venture.

We formulate plans and strategies for you to invest your capital in the most profitable manner and also in the most effective manner, so that you’re able to achieve maximum benefits with minimum input. In order to do that, maintaining a reliable accounting record of all revenues and expenses is of primary importance.

Small Business Accounting Software

Accounting plays a pivotal role in a small business’ success. You need to be aware at all times where your funds are being invested and what your returns are. Most accounting software can be quite confusing if one doesn’t know the basics. With myriads of small business accounting software packages available in the market, choosing the best software for your business can be quite confusing. But with KNR , you can take care of your business most ably, because we will guide you in choosing the right small business accounting software , keeping your business needs in mind.

We know how important it is for you to be able to keep track of all investments and the standing of your business. KNR provides you with all possible information that you need to run your business smoothly. We assist you in not just setting up your venture, but also in increasing your “totals” by providing you the best business strategies, relevant market research and continued backup during your business cycles.

Small Business Consulting requires a good understanding of the nitty-gritty’s of small business ventures. It is important to understand the importance of formulating business plans according to the limitations of resources. Our small business consultants will provide you with specialized services that are tailor made for small businesses. Our consultants will help you in setting up, as well as understanding the entire gamut of business plans, strategies and business analysis.

With KNR small business consulting services at your side, you surely cannot falter in establishing and running a successful business.

By: Brooke Thom

Bookkeeping Software Spreadsheets Are Essential Small Business Accounting Tools

admin — Sun, 11 Apr 2010 15:07:18 +0000

Businesses generally make extensive use of spreadsheets both in accounting and all other business fields. Being a numerically based system of analyzing information spreadsheets are used throughout every accounting function as the technique presents an ideal basis to maintain accuracy and automate the collection of financial information.

Every small business needs to keep records of sales invoices and income received and purchase invoices in respect of expenses. It is not sufficient for accounting and taxation purposes for these receipts and payments to be left in the office or the back of a van in a carrier bag. At some stage these prime bookkeeping documents need to be processed.

Processing the financial documents related to a business enterprise basically means they need to be listed. For taxation and financial control purposes the invoices also need to be added up and analyzed. The most basic method would be to simply make a list of the sales income and a second list of the purchase expenses.

Using a manual method of listing the information falls short of the analysis required and is more time consuming that using a little technology to both ensure the summation is accurate and the analysis simplified. Listing the sales and expenses of a small business on spreadsheets is no more difficult then a manual paper system and has tremendous advantages in automating and ensuring accuracy.

Hence the use of bookkeeping spreadsheets to prepare the accounting information required.
Instead of listing the items on a paper list the items can be just as easily listed on a spreadsheet which will add up the items as required without the requirement to double check the adding up is accurate. Such a list has a history in accounting term as a sales day book and a purchase day book.

To achieve the required analysis of sales and purchases all that is required is to write into the top of each of the spreadsheet columns the titles of the analysis headings required. Then repeat the value of each transaction in the total column into the analysis columns. Use the spreadsheet technology to add up each column and you have an effective bookkeeping spreadsheet.

Preparing such a bookkeeping spreadsheet might and often does suffice the needs of the smallest business enterprise and is a close step towards achieving a valuable tool for this purpose, bookkeeping software. Bookkeeping software can be as simple as a home produced spreadsheet but with additional facets that can have significant financial benefits to the business.

Bookkeeping software produced on spreadsheets would normally be a series of spreadsheets with the columns preset and titled and formulae written into the sheet to automatically add up each column. In addition the columns used would normally be restricted to general headings to include a full analysis of all items.

Small businesses that might produce their own spreadsheet would often do this on an annual basis. Bookkeeping software is much more likely to provide these bookkeeping spreadsheet templates on a monthly basis to enable a degree of financial control to be exercised by the small business.

That is the second real value of bookkeeping spreadsheets, the ability to provide the business with financial information and through that data financial control over the business activities. The first value is of course the simplicity of listing with automated summation of the figures.

Small businesses can also benefit from professionally produced bookkeeping spreadsheets that have been specifically arranged not just to produce a list of income and expenses but also in a way that analyze that information in the way the small business requires it. There are two main requirements of the way the financial records are analyzed being to produce a financial profit and loss account for the business on a periodic basis but also to provide the totals of the categories required for taxation purposes.

Buying a piece of bookkeeping software written on spreadsheets can thus become an essential tool for the business. The essential element being to both make the accounting simple and easy as listing items, automated analysis and summation assisting the financial control and improved financial performance while also producing the benefits of being analyzed to make the completion of annual tax return forms easier.

Everyone in business wants to make a profit making financial control important. Everyone in business has to fill in tax forms and submit accounts in the tax authority format. Bookkeeping spreadsheets provide an essential accounting tool for every business to achieve these objectives.

By: Terry Cartwright

Accounting Software Are For All Kinds of Business

admin — Fri, 26 Mar 2010 11:26:39 +0000

Even small businesses have their own accounting transactions to be recorded. Most of these small businesses have the manual type of accounting system. They record all the transactions from inventory, purchases, sales, and even payroll systems. Hiring individuals specializing in the following field of expertise such as inventory, recording, purchasing, payroll master, and sales is given preference. Jobs such as this takes time and need to exert sufficient effort especially for business engage in selling. A small business accounting software will lessen this task as well as the salaries expense if you opt to use this instead of manually doing it.

Program developers develop the software to provide relief for small businesses. What the small business accounting software can do is beyond the achievement of manpower tasked with the same job it can perform. The software itself, after encoding the accounting entries could produce the desired financial statement vital in determining the business status. The accounting process is quicker and the job rate accomplishment is outstanding.

In exchange for this software, companies are able to save from having to employ several people for different jobs that require long hours of accomplishing. All the necessary entries can be encoded by fewer people, which can be easily processed by the small business accounting software. The software can automatically generate once encoded, financial documents, such as the financial statement, balance sheet, and the reconciliation reports.

Businesspersons who are after low overhead expense should try the software. Different small business accounting software produces similar results but vary according to its content software content and capabilities. A business minded individual will know how to differentiate and distinguish a good software from a low quality one.

In choosing the ideal software, consider the type of your business and the kind of transactions involved. As much as possible, pick the one that resembles the accounting system your office practiced as if it has been customized especially for you business. The highly recommended small business accounting software are those that are out of the box accounting system, If possible, choose a developer that could provide a customize accounting software for your kind of business.

Small business accounting software is very useful for all types of businesses especially the small types. Aside from the cost cutting of expenses due to the minimized staff hiring, results cannot be easily distorted by anyone. You can put a company password that only authorized personnel can access. All the accounting reports are guaranteed to be accurate and with an insignificant rate of error. Other accounting records such incoming and outgoing statements are thoroughly monitored. Payroll systems are programmed for payroll officers ease in making.

For business to be more mobile, they have to adapt to the new technologies. They have to offer accurate and faster services and this can be done only through the use of such accounting software. You can save more with the latest invention than the traditional system used by business. Give their sample a try and you will see the difference.

By: Jason Hansen

Small Business Accounting Software – What Is It Good For?

admin — Tue, 02 Mar 2010 05:55:04 +0000

Did you know that around 50% of small business owners don’t use saccounting software to process their accounting information? Many resort to the excel spreadsheet to keep track of money coming in and money going out. These small business owners would rather get on with their core business than worry about the administration tasks associated with accounting, even with a software package, because it seems like such a waste of time.

On the surface they are right. Administration does not contribute directly to earning cold hard cash, and takes the small business operator away from actually earning for the business. However, if the movement of money in and out of the business is accounted for accurately and on a timely basis, there are many benefits that come from having a package.

Enter data once and update a number of modules

The first benefit of using accounting software is having your accounting information centralized and organized, and having a system of easy retrieval. That is the beauty of a computerized database. You enter information in once and a number of areas in the accounting system can be updated so you don’t have to enter the information repeatedly.

Saves time and cuts down on errors

This saves considerable time and also cuts down on administrative errors that can be time consuming to find and fix. For example, when you make a payment for some capital equipment used by your business, the vendor file is updated, the cost account is updated, and if the accounting software has an integrated fixed asset register, that is also updated. Three areas are updated with one entry. If you maintained a manual accounting system on a spreadsheet or on paper, these three entries would have to be performed separately, wasting your valuable time, or costing you more for someone else to do the task.

Easy to find accounting information

Another benefit of the computerized database is that information is so easy to find in comparison to the manual system. If a supplier rings up and asks why they haven’t been paid, you can easily access their account information and check all previous payments and invoices entered for payment, to find the answer.

Automatically generate documents and reports

When it comes to purchasing, your purchase orders can be generated by the software, so you have a record in the system to match against the supplier invoice when you receive it. This system provides for an easy check to ensure you are being billed for, and also paying for, what was originally ordered. Checks can be printed by the accounting software instead of being manually hand written. Finally, reports can be generated at the push of a few buttons (or the click of a mouse!). Manually preparing reports can be time consuming and the process is prone to errors.

For countries that have a VAT / GST tax, it also automatically calculates the tax and generates reports for the end of month or quarter, for payment purposes.

Payroll Processing Benefits

There are benefits when it comes to payroll processing using accounting software. Most payroll processing is done on an exception basis. That means that the payroll for many small businesses are similar from week to week. Therefore, only exceptions or variations to the standard pay need to be entered into the payroll software. If there are no variations, there is very little in the way of processing.

These are just a few of the benefits of using it in a small business.

By: Graeme Wheeler

DIY Accounting Small Business Accounting Software Questions And Answers

admin — Sun, 07 Feb 2010 20:43:04 +0000

A number of questions are asked by clients either before purchasing or after downloading the accounting software. Many of these questions and the answers are the same the most typical of which are produced here.

Why is the monthly profit and loss account not updating from the sales and purchases entered.

Updating the profit and loss account in the financial accounts file is automated. If the financial accounts file is not updating automatically the links from the sales accounting spreadsheet and or the purchase accounting spreadsheet are not working. This may be because the file names have been changed which breaks the links between the files.

The most common reason is the way the files were originally saved when initially downloaded from the website by opening the files first before saving them. When a file is opened first before saving the computer stores that file in a temporary internet folder and changes the links to temporary links within that temporary folder.

When that file is then saved it is those temporary links which are being saved and not the original links. Those temporary links would not be recognised by the other files which form the link structure. The solution is to delete the files and save the files again direct to your accounts folder without opening them first thereby preserving the original links.

Accounting entries on sales and purchases appear on the profit and loss account but do not appear on the list of expenses on the self employed tax return.

The self employed tax return required to be completed in the UK is dependent upon the sales turnover. Small business with total sales income exceeding 64,000 pounds for the financial year ending 5 April 2008 are required to complete the full self employed tax return while businesses with a turnover under 64,000 pounds may complete the short version of the self employed tax return.. Coincidentally the threshold is the same as the vat threshold.

In addition if the sales income is less than 30,000 pounds then it is not necessary to complete all the individual expense classifications. The excel formulae within the financial accounts file automatically fill in the short or full tax return and only fill in the detailed expense classifications if required to do so.

Does the package produce my quarterly vat returns when a vat flat rate scheme is being operated.

The user guide contains notes on how to enter the value added tax flat rate percentage on the sales bookkeeping spreadsheet. The bookkeeping single entry of the flat rate vat percentage on the sales sheet updates throughout the package including the subsequent months on the sales sheet and also each month on the purchases bookkeeping spreadsheet automatically calculating value added tax at the flat rate percentage and expenses value added tax paid on purchases at the zero vat rate producing a quarterly vat return.

Does the self employed accounting software package produce a balance sheet.

Producing a balance sheet is optional for self employed small business and not an essential requirement of completing the self employed tax return. The self employed package is based upon single entry bookkeeping and does not produce a balance sheet which requires double entry bookkeeping while the limited company package does produce a balance sheet as it is a legal requirement for a limited liability company.

As the self employed accounting software includes sales and purchase spreadsheets and also cash and bank spreadsheets it is possible to manually produce a balance sheet if required but the accounting software does not produce it automatically.

Do I purchase a new software package each financial year or can the accounting software be updated for more than one year accounts.

As the accounting software and payroll packages include the current financial year tax rules that enable the financial packages to automate the production of that years tax returns then each year has new tax rules embedded and being on excel rather than an accounting database then it is necessary to purchase a new accounting or payroll package each year.

By: Terry Cartwright

Small Business Accounting Software – 3 Things To Consider When Buying

admin — Sat, 30 Jan 2010 21:16:46 +0000

Whether you are just staring out in small business and are trying to determine what sort of accounting software you need, or have been in business for a while and have decided to upgrade, there are a number of critical issues that need to be considered to get what you need.

Data Input

It is important to determine whether the entry of data into the system is user friendly. Can your staff (or you) easily enter the data without needing to access too many different screens? Is the layout of the screen logical and easy to follow? Input controls such as passwords need to be considered. Error signals during the actual input of data are important to reduce errors in your financial reports. For example, some accounting software will not allow incorrect expense codes to be entered, and will not proceed until a correct code is entered.

Data Output / Reporting

What sort of financial reports do you require? Have a look at the type of custom reports that are produced. If they in line with your requirements, good. If not you may need to consider industry specific software that produce reports for your needs. Also check to see if the accounting package allows you to easily design a customized report. Will it may produce GST / VAT reports, or other tax reports for tax purposes – this reporting requirement depends on the country you are in.

Module Range

Does the small business accounting software have the modules you need now, and also modules that you may need in the future? For example, apart from the general ledger / cashbook does it have a payroll module or a fixed asset register. Also, an important question to ask is, are the modules integrated? By that I mean, can the financial information entered into one area of it be transferred automatically, to a different area, without the same information being reentered. Having areas of the software integrated saves you time and reduces errors.

You need to consider what you want the accounting software to do based on your small business processes. Then get the modules or features you need. The basics usually include Debtors or customers – for people you sell goods or services to, Creditors or Suppliers – for people you buy goods or services from, and a general ledger. If you have employees, consider a Payroll module, and if you have a large number of assets you may need a fixed assets register. Job costing is helpful as it allows you to keep track of costs for specific jobs. Finally, what do you want the modules to do. For example, do you want it to print purchase orders, print checks, generate customer invoices.

Ask yourself these questions and you are well on the way to selecting the best package for your small business.

By: Graeme Wheeler

Read Through Small Business Accounting Software Reviews

admin — Mon, 25 Jan 2010 22:15:49 +0000

It is true that there is more than what meets the eyes in a small business accounting software review. It is also true that there is large number of small business accounting software doing the round in the market. It is also doubly true that many of them promise the sky and deliver not even the clouds. So how do you get to know the right software from the wrong one? How do you separate the rice from the husk? You need not believe the numerous small business accounting software reviews that plague the web site, but you can form opinions based on them.

There are as many small business accounting software reviews as there are software themselves; may be two to three times more. But then the small business accounting software reviews are not expected to be hundred percent neutral. May be there are a few users who also comment about the software. If you look at many of the freeware that is available as small business accounting software, they would have reviews which are neutral. Even there, you might find, manufacturer sponsored small business accounting software reviews that are far from neutral. Most of these reviews carry citations and performance indexes that might not be completely trustable. But that is not something you should really worry about. Because the small business accounting software reviews that you see on the web or on any of the magazines, you will know the intentions of the writer within the first few sentences.

Once you know what it that the writer is driving at is, you will only take what you feel are true comments and not take everything. This way, whatever the writer is writing does not make much sense to you except those points you are keen to know. Everyone will always lace their statements amidst truth. As all that you need to do is remove the chaff and take the real words. This is the case with most of the small business accounting software reviews that you might find online. For the real neutral reviews you need to hunt around a bit. Not all sites can be proud of being neutral. Identify these sites that would ensure you get neutral reviews all through for all the products of your interest.

Similar is the case with the comparisons and benchmarking that is normally done by magazines. They even declare winners of contests. But then to what extent are these contests valid and to what extent are these evaluations right? Most of the companies invariably raise objections to the methods of evaluations and would launch their own versions of it. You need to take everything with a pinch of salt. These comparisons however bring out some of the common features that all these products have and certain others would form the core of further small business accounting software reviews that might appear elsewhere. All these would be needed for you to draw your own conclusions. Take the benchmarks from all the parties to draw your own conclusion.

By: Francisco Segura

Small Business Accounting Software

admin — Fri, 15 Jan 2010 10:02:34 +0000

Your business, no matter how small, needs an effective accounting management system to sustain its day-to-day viability and establish its long-term financial goals. But when you are already multitasking as the CEO, the manager, and the salesman, you don’t really have time to be an accountant too, do you? Yes, actually, you do.

With a good small business accounting software program, you can still manage your cash flow hands on, without spending too much time. A few clicks here and there, and you can forecast revenues, pay bills, and generate reports. But what functionalities should you look for in accounting software? What do you really need and what can you do without? Read on for some tips.

Look for user-friendly software. Choose accounting software with an interface that resembles its traditional paper counterparts so that you can immediately navigate your way around it. The more familiar the layout of the software is to you, the easier you can intuitively explore its functionalities.

Internet and e-commerce features can also be important. If your small business relies on sales and orders via the worldwide web, you definitely need accounting software that seamlessly connects to e-Commerce functionalities. Find something that you can easily hook up to your bank’s online payment portal, for example, so you can automatically track payments made to you and bills you have to pay.

Search for compatibility with frequently used programs. If most of your records are Windows based, find small business accounting software that easily synchronizes with Microsoft Excel and other Microsoft Office applications. Such a feature will let you integrate your existing records without the risk of corrupting data. There are also specialty accounting software programs available for other platforms.

Examine the professional reports included in the software. Beware of some software packages that can generate hundreds of kinds of reports – you probably won’t use more than half of them, so why pay the extra price? Concentrate on essential reports instead, such as statements needed for tax filing and time-billing reports, if you use such.

There are other extras worth considering. If your business is quickly expanding, it might be a good idea to invest in expandable, multiple-user accounting software that integrates payroll functionalities, inventory tracking, job costing, and other productivity features. These types cost a little more, but are definitely necessary for any fast-growing small business.

By: Eric Morris

Small Business Accounting Software Equals Simple Bookkeeping Spreadsheets

admin — Fri, 15 Jan 2010 02:44:35 +0000

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.

By: Terry Cartwright