The profit and loss or income statement is a summary of income and expenses for the accounting period. It should show the name of your business and the period that the statement covers. The following example of a profit & loss statement summarises the income & expenses of a small gardening business:- Sales Because the […]
Income & Expenses
Income Different types of income should be kept separate / categorised in your accounts. For example a business may have the following types of income:- Sales – money received from customers in the course of providing it’s service Interest – interest received from the bank Grants – grants received Track them separately in your bookkeeping […]
Keeping Records
If you are self employed you are legally required to keep records in order to file an accurate tax return. Failure to do so could result in a fine of £3,000. Business Income Bank statements, receipts, invoices and any other documents relevant to trading income should be kept. If you are registered for any other […]