Setting up your systems and Processes

In this section we are going to look at setting up simple easy to follow internal systems so that you are collecting and recording the best information for your business. This information will help you understand your business, understand where your money is coming from and going to. It will also help you at year end to complete the relevant tax information.

Bookkeeping refers mainly to the record-keeping aspects of accounting. Bookkeeping is essentially the accounting process (some would say the drudgery) of recording all the information regarding the transactions and financial activities of a business. For businesses starting out, often the collection of information is overlooked - there are so many things to deal with – however it is important.  Here I will show you how to set up an easy to follow set of templates that you can update on the go. Take the time now and you will reap the benefits at the end of the year when you want to review how well (or badly) your company did.


Individual numbering

Each document needs to be given an individual number, we will call it a ‘posting’ number. This posting number should be written on the document if using a hard copy filing binder or incorporated into the Document name if saving as a pdf on your computer.

The main use of this number is to be able to track it through the system. Let me suggest the following numbers – however, feel free to create your own:-

·        Expenses – EXP001, EXP002 etc

·        Supplier Invoices – SUP001, SUP002 etc

·        Customer Invoices – CUS001, CUS002 etc

Remember you just need to be able to locate them in your file and in the worksheets that we are going to create.

We then need to identify the documents that we need to gather date on. This will mainly be

·        expense receipts,

·        supplier invoices and

·        sales invoices. 

·        Cash transactions

These documents are the starting point and the main books in the bookkeeping process.