Monthly Archive for August, 2007

Appropriate Bookkeeping

It’s important to remember that, over and above meeting legal requirements, day-to-day accounts are there to serve the business and not the other way round.
It is not always appropriate to keep full double-entry accounting records.  Indeed, for many businesses, it would be a mistake that would be costly in time and effort for very little return.  [...]

Simple Sales Ledger in Excel IV

To use the sales ledger spreadsheet is easy.  Just record all your sales invoices as you raise them.  Allow one row per invoice.
Enter the total amounts in columns D and E (if VAT registered) and check that the figure in column F is as you have put in your actual sales invoice.
If you give different periods [...]

Simple Sales Ledger in Excel III

To finish off this simple spreadsheet, it might be helpful to make it look slightly more presentable.Select Row 1 (by clicking on the 1) and then bring up the Format Cells dialog box (either by Menu|Format, keyboard shortcut or right mouse button menu) and then you can make the text bold (Font tab), colour in [...]

Simple Sales Ledger in Excel II

To format the numbers (in columns D,E, & F) so that they all have 2 decimal places, select these columns (by clicking at the top (where the column letter is) and then chosing Format|Cells and then (on the number tab) click number and make sure that there is a 2 in decimal places.
I also check [...]

Simple Sales Ledger in Excel I

First begin by heading up the columns, in cell A1:

date of invoice
invoice number (the number that you assign, since these are your sales invoices)
customer 
net amount (if registered for VAT, if not registered for VAT, then head this column “gross amount”)
VAT (omit this if not registered for VAT)
gross amount
credit period given (if applicable)
date invoice is due
date [...]

No Apology

I have been at the PUB (not that pub), the PowerUpBlog of Ingenuity Marketing (thanks to Michelle Golden at Golden Marketing for bringing this one to my attention) reading their what’s your story post and I’ve realised that I am guilty of giving off negative vibes about my profession.
I am apologetic at times, when I mention what I do and [...]

The Rules of Double Entry Bookkeeping

Every financial transaction gives rise to two accounting entries:

one debit
one credit

The total value of debit entries in the nominal ledger should always be equal to the total value of credit entries.

An increase in an expense or an increase in an asset is a debit
An increase in income (eg a sale) or an increase in a [...]

Double Entry Bookkeeping

Since total liabilities plus capital is always the same as total assets, any transaction which changes a businesses total assets must also change the liabilities plus capital.
Another way of looking at it is:  if a company buys some stock for £100, it’s total assets will have stayed the same, but the amount of cash falls [...]

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