Everyone in the company must keep records. Good records are very important to your business. Good records will help you do this: Business Expense Journal: This is where you record the total amount of your business expenses, such as rent, electricity, wages, and supplies. The record must include the date, a description of each expense and the amount. Whenever you pay a supplier or supplier for goods and services they have provided to your business, you have two options. You can either pay the invoice immediately and transfer it to the appropriate account, or you can save it to Accounts Payable to pay at a later date. You need good records to create accurate financial statements. This includes profit and loss accounts and balance sheets. These statements can help you deal with your bank or creditors and manage your business. It will also reduce your business expenses in several ways.
Transaction capture allows you to prepare finances for tax returns, meet deadlines, and avoid penalties. Your tax returns should always be filed throughout the year and well before deadlines expire to ensure minor errors can be changed before they become a big problem. When all transactions are recorded, this process becomes easier and easier. The importance of recording transactions should never be underestimated by a company. For more information about the services we offer, contact Coleman & Co. today. We are happy to advise you in addition to accurate and professional accounting for all Lisburn businesses. Call us today on 028 9266 3599 or fill out our contact form to make a request. Your own customers should always be charged the correct amount. In order to keep your expenses low, constant recording and management of transactions is necessary. You should update and review your applications regularly to ensure that you are reporting your income correctly. The correct application of your customers` payments guarantees repeat business and maintaining positive relationships with customers! The first thing you need to do before entering transactions is to determine whether an entry is a debit or a credit note.
Direct debits and credits shall be used in double-entry accounting and shall ensure that a corresponding credit transaction is recorded for each recorded drawdown transaction. For example, if you`re paying your utility bill, you`d need to make the following journal entry: Customer List: Depending on your business, it may be a good idea to track your customers` information so you can promote new offers or products. Provide the customer`s name, products purchased, phone number, email address, and postal or shipping address. You must have a security plan in place to protect this sensitive information. Since recording transactions is part of the accounting process – whether you record these transactions using accounting software, a journal of accounts, or another general ledger – they must be recorded in a timely and accurate manner. Every business must keep records for as long as required by law. This is important because HMRC may ask you to review previous files if there are any issues with your tax. The minimum period for which you must keep records is six years for VAT or five years from the last date you file your tax return. If you have employees, enter payslips. Typically, there are two types of payroll transactions that you need to record: the first entry after payroll processing and the cash entry when your employees are paid. Payroll records can sometimes be complicated, which is why it is highly recommended to use payroll software or payroll service to process payroll.
Keeping your books up to date and accurate is the best remedy for the financial health of your business. It allows you to effectively manage your company`s cash flow and get the best prices from suppliers as well as the best interest rates from your lenders. The first things your lenders ask for are up-to-date financial statements and tax returns.
