ROI small business accounting software, tax accounting, payroll software,

DIY Accounting Purchases Excel Spreadsheet

Self employed small business book keeping software UK

Entering the data in this small business accounts software is no more complicated than entering your financial information in 2 lists:

Simple Book keeping UK System:  Enter sales receipts on the sales excel book keeping spreadsheet

Simple Book keeping UK System:  Enter purchases on the purchase excel book keeping spreadsheet

The excel book keeping spreadsheets were designed from the simple small business bookkeeping software used for existing clients to make financial transactions fast, easy to enter and understand. Formula driven so that minimum data is entered with automated analysis producing from the book keeping system monthly profit & loss accounts, live debtor and creditor reports, self-assessment tax return and vat returns. Accountancy software reduced to its simplest form of single entry.

SCREENSHOT PURCHASES EXCEL BOOK KEEPING SPREADSHEET

Book keeping entries are only required in the above columns of this simple bookkeeping system which consists basically of making a list of purchases each month

The green shaded column for vat automatically calculates vat on purchase invoices at the current vat rate of 17.5%. If any purchases are at different vat rates, e.g. zero or 5% for power bills then simply overwrite the vat with the actual vat amount. Flexibility built in as by changing the 17.5 to zero the vat is disabled enabling the Accounting Software to be suitable for both vat registered and non vat registered businesses.

The orange shaded columns of the sales excel spreadsheet are automated and triggered by simply entering the type of receipt used to pay you. Automated small business book keeping software.

PURCHASE CREDITORS

An optional feature but nevertheless very important aspect of any business is maintaining strong financial control, a major  element of that financial control ensuring all purchases are paid for to maintain good supplier relations which are useful to driving lowest prices and achieving highest discounts. The purchase spreadsheet contains  the following table to enable that control to be precise and accurate

Enter the method of payment and the amount paid.  The formulae calculate any outstanding amounts yet to be paid and automatically calculate the number of days that purchase has been outstanding and being written on excel spreadsheets a simple click of the mouse offers a visual appreciation of just how much money has still to be paid  Accountancy software working for you.

PURCHASES SPREADSHEET

Record expenses from all sources, except bank interest and charges, in the Purchases workbook using the separate spreadsheet provided for each month. The analysis to separate different types of expenses incurred is achieved by entering a single letter in Column F which automates the analysis.

Business expenses includes all costs incurred by the business before including purchase of fixed assets which subsequently also require to be entered on the fixed asset schedule where individual assets are depreciated over their useful lives and capital tax allowances calculated.

Enter purchase credit notes as negative amounts

Data Entry

Column A – Enter the date of the purchase transaction

Column B – Enter the supplier’s name or source of purchase

Column C – Enter your reference number of the transaction or purchase invoice number.

Column D – Optional column for recording a description of the business expense

Column E – Enter a code letter to analyse the type of business expense.

Column F – Enter the mileage incurred in connection with a purchase. Should a “purchase mileage” be completed without a purchase enter the date and nature of the journey and mileage on a separate row.

Claiming mileage allowances is an alternative to vehicle costs, fuel, repairs, tax and insurance. If vehicle expenses are to be claimed leave Column D blank.

Column G – Enter EU if Value of goods Received from other EU Countries

Column H – Enter total amount payable including any Vat chargeable on the purchase value.                     

Column I – No Entry required. Column H contains formulae to automatically calculate the Vat input tax at the standard rate. Where the vat charged is not standard rate % of the purchase value such as non vat invoices, electricity bills and zero rated items enter the actual vat manually overwriting the formula.

The Vat calculation can be disabled by changing Cell H2. This change will then be carried forward to each subsequent month. Non vat registered business see Vat Returns section of this guide

Column J – No Entry required. Column J contains formulae to automatically calculate the net purchase value.

Note: The kilometric mileage allowances are shown in the tax accounts file, tax rules. The package automatically assumes the mileage allowances for vehicles over 1500 cc’s. If this is not applicable to your circumstances the look up the correct kilometric allowances in the tax rules and entre the allowance manually on the spreadsheet.

Purchase payments

Column L – Enter the Cash or Bank accounting source where details of the amount paid in respect of the item on this row is detailed.

Column M – Enter the actual amount paid as shown in the Cash or Bank accounting source record.

Column N - No Entry required. Formula driven to calculate the amount still unpaid

Column O - No Entry required. Formula driven to calculate the number of day’s amount outstanding.

Personal Percentage

If you have included total motor expenses and total heat and light expenses by entering the personal use percentage in the blue shaded box the formula contained in these columns will then calculate the amount of personal use which will then be transferred to the profit and loss account and your net profit adjusted to take account of the amount disallowed.

Opening Creditors

The Opening Creditors worksheet as explained in “Preparing to get started” is to maintain continuity of financial control to assist the payment of all amounts due by the business.

Closing Creditors

Part of the year end accounting procedure after all purchases have been entered from Cash and Bank to the Purchases workbook copy and paste items still unpaid from each month to this worksheet, the total in Cell

What happens to the bookkeeping information entered? 

The above excel book keeping spreadsheet totals each column for each book keeping month. The totals of each sheet are then collected by the accountancy software to complete the simple book keeping system by automatically producing the vat returns each quarter, monthly profit and loss account and self assessment tax return to complete the self employed book keeping system.

Accountancy software designed to save many times the cost of buying it.

A simple  bookkeeping system so clients can spend  time saving  money, not wasting it on unnecessarily complex accountancy software.

FIXED ASSETS AND  CAPITAL TAX ALLOWANCES

Fixed items are physical items used by the business over m a period of more than one year.

Depreciation spreads the financial effect on profits over the life of the asset but does not have an effect on the business tax as depreciation is disallowed as an expense. Instead the business receives tax allowances on the cost of assets to set against its profit.

When the fixed asset schedule is completed the capital allowances are automatically calculated and update the profit tax return.

Capital allowances on vehicles are automatically reduced by the personal use %. If a vehicle is also used for personal in addition to business purposes then enter the percentage of private use based upon mileage. This “private use percentage” has the effect of reducing the level of tax allowances claimed

Data Entry Fixed Asset worksheet

Column B – Enter date the asset was purchased.

Column C – Enter the asset description

Column E – Enter the purchase invoice number, obtained

Column F – Enter Original purchase cost of asset

Column G – Enter the asset Accumulated Depreciation.

Column H – Enter the asset Depreciation Rate %

Businesses should set a consistent policy in the treatment of fixed assets and it is suggested that only long term assets (used more than one year) and costing over £100 should be classified as “fixed”

Column P – Enter the Wear and Tear Tax Value

Column Q – Wear and Tear Allowance No Entries required

Column R– Wear and Tear Allowance No Entries required.

Column S – Wear and Tear Tax Value No Entries required

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Last modified: 10/03/09