How to Gain the Most from your Accounting Records

Follow these tips to help reduce the time and cost involved in preparing your accounts:

• Ensure that you get an invoice and/or receipt for all purchases that you make
• Record all sales or services that you have provided i.e. till receipts and sales invoices
• File all correspondence in order
• Maintain a cash book for receipts and payments. Payment received includes not only sales income but also non-sales income such as capital introduced into the business and bank interest received
• Sub-total each page of your cash book and day books, providing totals at the end
• Ensure that you detail your cheque stubbs clearly – date, supplier name, invoice number, item purchased, amount
• Keep personal and business cash separate. Do not use business cash to make private payments. Alternatively draw out a round figure say each week or month (drawings) to deposit into your personal account to pay personal bills
• List and total your year end debtors. Advise your bookkeeper/accountant of any doubtful or bad debts
• List and total your year end creditors
• List your fixed asset additions and disposals made during the year
• List your year end stock and work in progress
• Keep a back up of your computer records
• Retain all of the following: bank statements, paying in books, cheque stubbs, sales and purchase invoices, till receipts, credit card receipts. File them in date order.

Are your records accurate and reliable? Ensure that:

• Income is recorded and banked promptly
• All expenses are authorised and valid  
• The cash book is reconciled with your bank and credit card statements regularly
• You reconcile your principal control accounts including sales, purchases and bank accounts

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