Karenthebookkeeper

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Karenthebookkeeper

Bookkeeper specialising in Sage and Excel. Concentrate on what you do best and I'll organise your ac

20/02/2024

How can you reduce your VAT bill further❓

If you calculate your VAT using the accruals basis.
Review the payments made after the quarter end and ensure all the invoices have been entered prior to calculating your VAT due. Some of the payments maybe for invoices that can be included in your VAT return and can thereby help you with your cashflow.

Did this for one of my clients this week and we considerably reduced his VAT liability for the quarter. Needless to say he was delighted.

15/02/2024

How do you efficiently go from a pile of papers to a set of accounts❓

Automate
👉 Scan and use character recognition software
👉 Use accounting software

14/02/2024

Do you use cash accounting or accruals based accounting❓

⭐Cash Accounting⭐
Revenue recorded when cash arrives
Expenses recorded when paid for.

⭐Accruals Basis⭐
Revenue recorded when earned
Expenses recorded when incurred

Cash Basis
👉Easy to use
👉Clear picture of the cash flow
👉Can help lower your taxes

But
Only gives a limited insight
Doesn't take into account liabilities and receivables

Accruals Basis
👉Accurate and versatile
👉Includes receivables and liabilities.
Who owes you and what you owe.
👉Matches revenue with expenses
👉Shows true picture of profitability

But
It's more comlex
More areas to check
Difficult to check cash flow

13/02/2024

"Time is the most valuable thing a man can spend."
Theophrastus

Use your time wisely and concentrate on what your best at and outsource what you find difficult and a chore.

12/02/2024

What is depreciation❓

An accounting practice used to spread the cost of a tangible or physical asset over its useful life.

Represents how much of the asset's value has been used up in any given time period.

Common items that are depreciated by small businesses are:
⭐Vehicles
⭐Equipment
⭐Office Furniture
⭐Computers

There are a number of methods that can be employed including:
👉Straight Line Method
This spreads the cost of the asset over its anticipated
useful life. If only going to last 4 years. 25% of the cost
written off every year.

👉Reducing Balance Method
Used when asset will gradually reduce in value.
Fixed percentage of the residual value is depreciated.

08/02/2024

How important is gratitude❓

Yesterday I just performed my normal bookkeeping duties for a new client but he was so surprised with what I acheived in such a short space of time. He was very effusive with his praise.

A real confidence booster.

Proof that stick to what you do best and outsource the rest is far more effective.

02/02/2024

"A journey of a thousand miles begins with a single step" Lau Tzu

👉Go take that first step.

31/01/2024

Do you have money set aside for VAT and tax❓

Open a business savings account.
Transfer 25% to 30% of all receipts into the savings account.

Then the money should be available for the VAT and tax when it becomes payable.

30/01/2024

Do you keep an eye on your credit❓

⭐Set strict guidlines for your customer to pay you.
⭐Chase late payers
⭐Blacklist repeat offenders

You would expect to pay for loans don't give them to your customers for free.

Be courteous and pay your own bills in good time but take advantage of generous due dates.

29/01/2024

How profitable was your last sale❓

Need to consider
👉 Cost of purchasing creating the item
👉 Contribution towards overheads
👉 Additional costs of transfer of goods/service to clients

26/01/2024

What gems are you going to come up with today❓

Today in 1905 the world's largest diamond was found in South Africa
The Cullinan Diamond weighed 3106.75 carats (621.35 g or 1.37 lb) and has an estimated value of 2 billion USD

Let's search for a gem or two❗

25/01/2024

Why should you check your supplier statements❓

👉 Have you received all the invoices listed.
👉 Were all the invoices for you or were they intended for another customer.
👉 Have they allocated the payments you sent correctly did you send a remittance advice.

Address

9 Lovett Road
London Colney
AL21UE

Website

http://www.karenthebookkeeper.co.uk/

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