[Iain p]

Hi everyone!

Been reading the forum & it's very interesting.

I started cleaning window on my own on the 1st of june.

I went out knocking on doors and managed to pick up £350 of work a month!

I beleive you have 3 months to tell the tax and register as self employed. I sent my forms off last week.

I have kept all my receipts and have a list of all my customers addresses.

I haven't got a clue of to keep books! PLEASE PLEASE SOMEONE HELP ME. PLEASE

 I haven't banked any of my earnings as yet.

Can I bank at the end of each month?

Do I just deduct all me expenses from my monthly income and bank what is left?

I am really worried about my situation and don't want to get into a mess

Please help me! 

[andy roberts]

Iain

You can buy an accounts package like Quickbooks from £75
You can buy a small business easy to use accounts book from somewhere like WHSmith £9
Read some books on how to run a business
alternativly enrol in a business management course

Im not knocking you, but to start a business without fundamental buisness knowledge is not very good.

Regards   Andy

[reah]

Hey
I have two business accounts.
One to pay the money earnt in and the other a reserve account to move my tax money weekly.
I pay all money daily or weekly. depending what i have been given or sent that day.
I then have my normal account and also a savings account.
I keep records as i go.
I record my daily takings  in a ledger or cash book what ever you prefer.
My end of week totals will be all bankings for the week, actual cleaned,difference being money not collected.
I record cash and cheques seperatly in the same book.
Petty cash and millage.
I also carry over to keep an on going total of cleaned banked petty cash and millage.
This realy helps as you do not have to add it all up when the time comes.
My petty cash reciepts go into a monthly envelope.At the end of the month i write the amount and month on the front and then file.
At the end of the tax year all info goes into a file with that year on so easy to get to if needed.
Hope this helps
Reah

[reah]

Hey
I also record all tips.
Some will knock this but in my buisiness every penny is accounted for.

[Iain p]

Thanks for all your advise.

You have worried me even more now?

I don't want to get into trouble with the tax man! I just want to make an honest living.

Because I started and the begining of the month I have kept all the cash that I took in, in a box and kept all my receipts together for fuel and equipment.

I have all my customers addresses in microsoft excell and there I record the date when I did them and when they paid me.

Because I haven't paid anything in this month when should I pay it in? Can I pay in monthly?

I think i'm in a mess now and my heart is pounding. I dont have any one that can help me out! I'm only 20 years old.

What can I do?

[reah]

Hey
There realy is no reason to worry.
Just register then as you said you have all receipts do your banking as soon as you can.Then you can go on from there.
Again there is no reason to worry.

[busydaffodil]

Iain

the first thing you can do is stop worrying.

Have you opened a business bank account?   

theres a very good manual accounting book called SIMPLEX D.  Most stationers sell them.   In it, every section is listed for you. 
You write in your daily takings, your expenses, etc.
It even has sections for you to log when you've banked, and your own personal wages.    Go have a look.  Sometimes, the old fashioned way is worth trying, before trying the more complex computerised stuff.  Good luck

If all else fails, I think you could go to an evening class. 

[Iain p]

Thanks guys but I cant stop worrying.

I dont have a business account. I was told my a friend of the family just to use my personal account for now and switch to a business account after the first year is out of the way.

The only reason I didn't open a business account was that this was a last minute venture. When you go to open a business account you need to show a business plan and stuff like that. I just knocked on doors and started imediatley.

Your all probably laughing at me righ now and saying what a fool.

If I just pay in all my earnings for the next 12 months and keep all my receipts and pay a book keeper at the end to sort it out? Would this do?

[reah]

Hey
I do my tax return online.
When you first start it is probaly best to get some one to do your books but over time you will learn.
I do all my own accounts and do not have to pay some one else.
As said it is a good idea to get on a course there is allways a course to go on by the inland rev.
Give them a call they will point you in the right direction.
Do not be afraid to ask anything on this forum we are all here to help.
Reah

[busydaffodil]

Iain...I agree totally with the personal account.  As long as your customers make the cheques out to you..........no probs.  Just dont tell your bank what your doing.

I'm certainly not laughing at you.  At 20yrs of age, you have alot of bottle going it alone.  That is impressive!!  

Good luck.  

Try evening classes or speak to a local window cleaner or self employed person, and ask for help.  People can be nice.   Also, go have a look at a simplex D book.  If it looks like you understand it.....go for it.   It costs about £14.

[busydaffodil]

http://www.eurostationers.com/SIMPLEX_D.htm

http://cgi.ebay.co.uk/BOOKKEEPING-ACCOUNTS-EXCEL-SPREADSHEET-SIMPLEX-D_W0QQitemZ7249869524QQihZ015QQcategoryZ3781QQrdZ1QQcmdZViewItem

Computerised



http://cgi.ebay.co.uk/SIMPLEX-D-ACCOUNT-BOOK_W0QQitemZ260001073868QQihZ016QQcategoryZ121791QQrdZ1QQcmdZViewItem

Actual book

[reah]

Hey
busy
If you are registerd as a buisness why would you not tell your bank that the money you are earning is going into that account.
Why keep it quite.
I certainly would not advertise that fact on line.  The last thing you want is the tax man on your back.
Abbey are a great bank to deal with Free banking no queing up you can deposit in the whole in the wall no charges.
Be honest in all your buisness dealings.

[Iain p]

Thanks guys for input!

Thanks busy for that links.

Would I be best going for one of the books for my first year or the computer accounting programmes?

Personaly I think the book would be easy for me to start with?

[busydaffodil]

Reah...........window cleaning is alot of cash.   I think banks make vast amounts of money off the backs of people who can least afford it. 
In my opnion (and I agreed with Iain on this point), he should open a personal account, which is free, using his own name.    The cheques he receives are made out to him personally.  WHY pay charges?      I have been self employed for over 20 yrs....and have always had a personal account for my 1 business.  The taxman sees ALL my personal bank account statements.  I definitely did not say to hide anything from the taxman. 

Now, back to the subject thread........Iain, book would probably be easier for first year.  Do everything in pencil until you know its right.....its easy to alter mistakes then.

 

[reah]

Hey
Each to his own methods if it works for you great and well done.

[Iain p]

Thanks busy will go for book!  

Personaly I wish I didn't have to do all this tax malarki. But I have to

Anyone who is starting up on there own should be tax exempt for the first year.

The gov should try to encourage people starting out but they are doing the opposite!!!

Iain

[reah]

Hey
I totaly agree it is hardly encouraging is it.
It can be a real scare.
I ran a national high street store for over twenty years one of the big three.
On a quite week we made over one million.
That was a real head ache.
Have been window cleaning for two years now and have not looked back even have some one doing two days a week now.
It will be the best move you ever made.

[Trevor Knight]

Iain,

It appears you are not too familiar with your tax liability and record keeping.

My advice to you is this.

Go to an accountant, find a book keeper or one man band and sit down with him. He/her will be able to tell you what you need to do and then at the end of the year he/she will be able to submit your books without fear of you making a mistake.

The fee for this shouldn't be more than £150 per year.

This way you can keep the books how they want then kept and you can focus on building your business.

Don't panic, its really not all that.

In a years time you will be a lot better off understanding how it works and if you want you can go it alone with the books etc.....

Best wishes,

Trev

[pjulk]

Hi Iain

Have you registered your business with the tax office yet.
If not do not worry they give you 90 days i think.

The tax office do free course's for anyone starting out in business and they will show you how to do your accounts.
And what you can and can't claim for.
I went on a couple of these course's and thought they were great.

Also business link do some free course's aswell so might be worth you checking these out and maybe do a couple so you will then at least have a better understanding.

Paul

[Iain p]

Started on the 1st of june.

Sent the forms off last week to register the business!

Will the tax send me a book on how to keep books or do I phsyically have to go on a course?