Using an accounts software system, or transferring over from another system, can be daunting the first time you login. Don't worry, we'll try and explain what you should be doing first to get things set up correctly.
The main thing to remember is that the accounting system should be a replica of what is going on through the business and through the business bank account.
So anything relating to paperwork, such as invoices and receipts and anything involving the business bank account should be reflected in the accounts system.
The objective is to get the accounts system to replica the real work and the balance of the bank to match the balance per the actual business bank account statement.
1. Entering your paperwork
If you are running a business then you will generate paperwork. This may be in the form of invoices that you send to customers and / or receipts and invoices that you have been given by suppliers.
All paperwork involving these types of activity should be added in Clever Accounts
Such things could include:
- Sales invoices: read on how to create your first invoice from Clever Accounts.
- Expenses: as you will probably incur expenses paid for personally on behalf of the business, see how to enter these.
- Adding mileage: you may have travelled for business purposes. You can enter the miles you have travelled and claim them as expenses.
2. Entering bank payments
Next, you may want to add income and expenditure that you have never received any paperwork for. These could be for items such as bank charges, interest, tax payments etc.
These payments are important to add in
- Manual Payment In and Out: a guide to see how you can add payments into and out of the bank.
- Uploading bank statements: you may want to upload bank statements in CSV format from your online banking facility.
- Paying off invoices: finally, you may simply want to record a payment against invoices you have already entered into Clever Accounts from the paperwork.
3. Checking what to pay yourself
Once you have entered all invoices, receipts, expenses and bank payments and receipts, you may want to check the financial status of your business and, more importantly, see how much you can pay yourself from the business.
- Paying yourself wages: although Clever Accounts does not have a payroll module, you can set a regular payment going out of the bank to represent the wages you pay.
- Paying a dividend: after all costs and taxes are taken into account you may want to pay a dividend to yourself.
- Profit and Loss: this represents the financial summary of the business over a given period. It shows how well (or badly) you are doing!