By Peter Taylor
Debts are only as very important as the other element of a company, and will be an important to its prosperity or even survival. In "doing the books" you may be on the very center of the company, together with your arms at the controls. you'll be curious about the administration of its resources and liabilities, its costs and its revenue margins. The extra keep an eye on you might have over those, and the documents and figurework on which they're dependent, the higher it is possible for you to to regulate your individual company.
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Extra info for Book-Keeping & Accounting for Small Business, 7th edition
Treat the money drawn from the bank as: a payment in the bank records, and as a cash receipt in the cash records (using the words 'Cash from Bank'). Once again, if you think of cash transactions paid from the bank, and cash received into the cash float, quite separately, then the treatment of the transactions in your records should become clear. SUMMARY You should open a business bank account. The records you require will depend upon the size of your business. Don't overburden yourself with a more complicated system than you need.
Getting Started 33 Expenses - May 200X 4 May 6 May 10 May 12 May 18 May 24 May Car park Window cleane Lunch with supplier Car park Stationery - envelopes etc. 29 Fig. 3. An expenses voucher. g. car park tickets) should be clipped to the expense voucher. At the end of the month (or when it totals a reasonable amount) you should write a cheque on your business bank account, payable to yourself (or to cash) to reimburse yourself. File the expense vouchers on your paid purchase invoice file to match the payment that the business has made by cheque.
2. When the customer pays, mark your copy of the invoice in the book with the date and amount paid. If it is paid in full, fold the top right hand corner of the invoice over. 3. At the end of each month any invoices not folded over remain unpaid. You should then normally send a statement to the customer of the amount still owed to you. Using specially printed invoices If you want something a bit smarter, then printed invoices might be the answer. ). Alternatively you could print your own invoices from your computer which can include graphics to give them an impressive look.
Book-Keeping & Accounting for Small Business, 7th edition by Peter Taylor