I'm probably going to sound like an idiot posting this! But I've been dealing with the intricacies of Payroll for so long that my bookkeeping knowledge is relegated to theory!
I've been contacted by a possible client who's recently started a small clothes shop business. She wanted to know about the accounts side as she wants to mainly do the bookkeeping herself and then every once or often I could come in and do bits. Basically she wants me to do the initial set up and get the accounts up to date (six weeks of trading so far.)
Am I right in supposeing that an excel template would be sufficient. One for Income, (her sales and she also does sale or return for someone which she keeps a % of profit). I think returned goods would probably need be separate.
Expenses sheet which details it all.
Cashbook sheet which she or I can then reconcile to the bank statements as they come in.
Also a credit card one.
She's been keeping petrol receipts but I think a mileage log would be better as it would negate the personal use of the car?
Also she wants to keep a close eye on how her business is performing. Is it normal pratice to do a Profit & Loss account every month or so?
I think that covers what is needed and sorry for my waffle! Need sound it out!
I know your going for simple with an excel spreadsheet, but with all they sheets it's starting to sound complex. Then for you to do a P&L it's manual or input into another program.
Why not look at VT Cashbook. It's free, simple and easy to use. It'll print the P&L and make it easier for bank reconciliation's.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Hi Hannah, for your clothes shop, an Excel template for income, expenses, cashbook, credit card, and a monthly Profit & Loss statement would be ideal for streamlined sole trader bookkeeping.
Dealing with payroll has kept me pretty busy, but now I'm stepping into bookkeeping for a small clothes shop quite a switch, right? Excel should do the trick for setting up templates. I'd recommend separate sheets for income (sales and profit share), expenses, and a cashbook for reconciling bank statements. Credit card transactions and returned goods deserve their own spots too.
Switching from petrol receipts to a mileage log is smart to keep business expenses clear from personal ones. And yup, doing monthly Profit & Loss statements is standard to track how the business is doing.
You're on the right path! These setups will keep things smooth for your client. If you need more tips on Excel or anything else, just shout!
Excel templates for income, expenses, cash, and credit cards are great. Separate out returned goods and use a mileage log for travel. Monthly Profit & Loss statements will keep tabs on business performance.
It sounds like you have a good grasp of what needs to be done for your client's small clothes shop business. Here's a structured approach and some insights based on your description:
1. Excel Template for Income Sales: Create a sheet to record all sales transactions, including regular sales and sale or return transactions. Ensure you have columns for date, customer details (if applicable), sales amount, and any deductions or returns. Returned Goods: If returned goods need to be tracked separately (especially if they affect sales or inventory), create a separate sheet to record these transactions. 2. Expenses Sheet Create a detailed sheet to record all business expenses. This should include categories such as rent, utilities, inventory purchases, marketing expenses, etc. Each expense should be recorded with the date, vendor details, amount, and purpose. 3. Cashbook and Credit Card Sheets Cashbook: Track all cash transactions separately from bank transactions. Include columns for date, description, amount in/out, and balance. Credit Card: Similar to the cashbook, track all credit card transactions. Ensure you record date, vendor details, amount, and purpose. 4. Mileage Log vs. Petrol Receipts Mileage Log: Yes, a mileage log is often more practical and helps distinguish between business and personal use of the car. It's easier to track and calculate the deductible mileage for tax purposes. Petrol Receipts: You can still keep records of petrol receipts, but focus on logging business-related mileage separately. 5. Profit & Loss Account Frequency: It's good practice to prepare a Profit & Loss (P&L) statement monthly, especially for a small business. This helps the owner track the financial performance regularly and make informed decisions. Additional Tips: Automation: Consider using accounting software like QuickBooks or Xero, which can streamline these processes and provide better reporting capabilities. Training: Offer basic training to your client on how to use these templates or software effectively, ensuring they can maintain accurate records between your visits. By setting up these systems, you'll not only help your client maintain organized financial records but also empower them to make informed business decisions. If you have any specific questions or need further advice on setting up these templates, feel free to ask!
-- Edited by hasib on Tuesday 9th of July 2024 05:17:13 AM
