Practical Accounts & Bookkeeping in easy steps

by Alex Byrne

Overview

The second edition of Practical Accounts and Bookkeeping in easy steps provides assistance for anyone unfamiliar with UK accounts, either already in the business world or waiting for that crucial moment to enter it. From understanding accounts and why they are important, the legal documents required when preparing accounts, what happens if accounts are not submitted in time and when accounts need to be sent to authorities, to the more complex scenarios of creating a balance sheet using sales ledgers, purchase ledgers and nominal ledgers, this book shows you how in easy to follow steps.

This book will help you make sense of the 'daunting' accounts world. It will help you to spot problems in the accounts and explain them to others using the correct terminology. It will show you how to get to grips with Double Entry bookkeeping, and its importance, together with how computer software has been designed to simplify the processes. Practical Accounts and Bookkeeping in easy steps is certain to help the non-accountant understand UK businesses finances, assisting in making your company as successful as possible.

This second edition is updated to cover the latest UK legislation.

Product Details

ISBN-13:	9781840787382
Publisher:	In Easy Steps Limited
Publication date:	11/29/2016
Series:	In Easy Steps
Edition description:	Second Edition
Pages:	288
Product dimensions:	7.20(w) x 8.80(h) x 0.70(d)

About the Author

Alex Byrne worked for HM Revenue & Customs (HMRC), UK for 23 years and was a senior Inspector of Taxes. He began his own tax consultancy business in 1997. Alex is also the author of the first edition of Practical Accounts & Bookkeeping in easy steps.

Table of Contents

1 Introduction 7

Business Accounts 8

What are Accounts? 10

Does a Business Need an Accountant? 13

Summary 14

2 Annual Accounts 15

Basic Annual Accounts 16

Profit and Loss Account 17

Summary 20

3 Balance Sheet 21

What is a Balance Sheet? 22

What are Assets and Liabilities? 22

What is a Capital Account? 26

Capital Accounts - Partnerships 44

Summary 46

4 Record Keeping 47

Records Required 48

The Law 49

What's the Minimum? 50

Other Possible Record Books 57

Wages 58

Petty Cash 60

Summary 62

5 Understanding Accounts 63

Annual Accounts 64

Fundamental Accountancy Principles 65

Typical Profit & Loss Accounts 67

Business Expenses 69

Work in Progress 72

Gross Profit 74

Indirect Costs 78

Depreciation 80

Net Profit 87

Other Profit & Loss Items 88

Typical Balance Sheet 93

Fixed Assets 93

Current Assets 98

Liabilities 99

Capital Accounts 100

Accounts Fiddly Bits 102

Balance Sheet Example 110

Cashflow Statement 113

Bank Balance Mismatch 117

Control Accounts 119

Danger Signs in Accounts 122

6 VAT 123

What is VAT? 124

When do you have to register for VAT? 128

When do you pay VAT? 129

Summary 130

7 Companies 131

Company Balance Sheets 132

Directors' Responsibilities 135

Legal Requirements for Company Accounts 136

Sample Company Accounts 141

Companies House Deadlines 152

Summary 153

8 Double Entry 155

What is Double Entry? 156

Starting Double Entry 158

Summary 174

9 Nominal Accounts 175

Overview 176

Trial Balance 177

From Trial Balance to P & L and Balance Sheet 180

Trial Balance that the Business Could Produce 192

Nominals & Trial Balance 193

Trial Balance that the Accountant Produces 201

Year 2 Double Entry and Trial Balance 205

Year 2 Nominals & Trial Balance 212

Summary 222

10 Double Entry for VAT 223

Double Entries for VAT 224

Nominals and TB with VAT 234

Summary 240

11 Accounting Software 241

Software Packages 242

Spreadsheet Solutions 243

Summary 244

12 Other Financial Statements 245

Management Accounts 246

Cashflow Forecasts 248

Summary 252

13 Business Tax 253

Profit for Tax Purposes 254

Capital Allowances 256

Tax Deadlines & Penalties 257

Summary 260

14 Glossary 261

Test Youtself! 267

Index 284