Book Keeping

Book keeping is not just for tax purposes, as a lot of small business owners seem to think. It is a vital part of a business, if you wish to be successful. As in any walk of life, information is critical and financial information is the key to good business decisions. Good financial information will only be available if your accounts are regularly updated and current.

You may need the assistance of a book-keeper or accountant and this decision will be based on the size and complexity of your business coupled to the volume of business transactions.

As a minimum you need to maintain the following books of accounts:

  • Cash Book for recording receipts and payments of the business
  • Petty Cash Book outlining full records of payments made and cash received
  • Sales Book for recording cash & credit sales of the business to whom they were made and the VAT element of each one.
  • Purchase Book to record cash and credit purchases and the VAT element of each one.
  • Wages/Salaries Book to detail all wages and salaries paid to employees and the tax deductions made in respect of each employee.
  • Cheque Journal to record all cheque payments made analysed under various headings
 

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