|
  |
|
|
”No Surprises” accounting - Paperwork
By Roy Law of Systems Studio
If your bookkeeping paperwork is always under control, then you’ll have more time for doing what you do best – actually running your business. In the same way that “A dog is not just for Christmas”, the ”No Surprises” philosophy is that accounting is not just for end-of-year returns – in these recessionary times it needs to be kept under constant review. Payroll is not specifically covered although it is high-profile - if you’ve employees, that’s how they’ll judge the accounting function. If it’s just you, but operating as a limited company, you’re still an employee. The following is applied common sense; tedious at times, but it sure saves heartaches. 1. Filing is for Finding
Don’t file just to get it out of sight (to get a document thoroughly lost just put it in a bad filing system); file for retrieval.
Use the minimum number of files, don’t economize too much with re-use of files, use colour (everyone knows traffic lights). Lever-arch files rather than ring binders (which may collapse if you drop them). Unless you’re a lawyer or regularly use unusual sizes go for A4 rather than Foolscap (standard, smaller, and cheaper). 2. First, create the places to put things
There’s a lot of truth in the old saying “A place for everything and everything in its place”. Essential before you start to “clear your desk”
Use the KISS (Keep It Simple Stupid) principle so minimize the number of such places. 3. Latest (rather than girls!) on Top
Although the human mind works naturally in time order, your accounting documents are not meant to be read like a book. Some people refer to this as reverse filing.
It is actually worthwhile the very little bit of extra time to punch dead centre; it looks good and helps prevent papers dropping out; creates impression of efficiency for HMRC/IRS inspections (where you’ll have to find random transactions quickly under pressure). A sturdy A4 4-hole punch is best. 4. Divide and Rule
A4 5-part dividers are a good standard component of any filing system; mark them in pencil until you’ve got the order right. Don’t try to economize by using last year’s dividers. 5. Size does matter!
What are all the same shape and size? Primarily Bank Statements and your own Invoices. What are all shapes and sizes? Supplier invoices, supplier statements and just about everything else. So, different treatments are called for:
OUTPUTS – your Invoices: Best in numerical order, latest (by date) on top.
INPUTS – their Invoices: Best in alphabetical order of name, within each name latest (by date) on top. A-Z dividers (don’t economise each year!). In case of doubt (Mc. Mac etc) look in the Telephone Directory (useful for quick check without turning on the computer).
INPUTS – their Statements: Never use as remittance advices unless a tear-off strip; always keep and file by date under the Supplier’s name. Provides third-party proof for your accountant and HMRC.
INPUTS – Petty Cash: This bugbear is easily solved by use of C5 or 9”x6” envelopes – one for each month (far better than a shoebox).
OUTPUTS & INPUTS – for Sole Traders: Two such envelopes for each month, (marked ALLOWABLE and NON-ALLOWABLE). Plus A4 Lever-Arch files with 5-part dividers in the same order as Tax Return Headings; forget A-Z dividers unless you have a very large number of Supplier Invoices. 6. Tax Years are like underwear!
One in the wash, one being worn, and a clean one in the drawer. Keep three years’ accounting records accessible; maybe lace-up archive envelopes after that.
|
Contributor's Note
© 2009, Roy Law of Systems Studio, all rights reserved.
|
|
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "”No Surprises” accounting - Paperwork" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
|
This intel was contributed by Roy Law
Roy Law
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
