It is especially important if you are starting a new business that you get a proper record keeping system in place from the beginning.

Good record keeping saves you time and accountancy costs

Avoid penalties for mistakes by proving you've taken reasonable care in your record keeping

Comprehensive records enable you to have all the information you need when planning strategy

Accurate records help you keep track of cash flow

Business planning and record keeping go hand in hand

Be in control – tracking all your important trends means no unpleasant surprises

KEEPING RECORDS

THE RECORDS YOU NEED TO KEEP

All businesses are required to keep a record of all sales and takings, including cash receipts.

Records include:

till rolls sales invoices bank statements paying-in slips accounting records

These records allow you to quickly see what you are owed and accurately work out your total income.

You must also keep a record of all purchases and expenses, including cash purchases.

These records include:

receipts purchase invoices bank and credit card statements cheque book stubs

These records allow you to quickly see what you have spent, how much you owe and what you can claim for tax purposes.

OTHER RECORD THAT MAY NEED TO BE KEPT

VAT records - If you register above £77,000 compulsoryEmployment records - If you employ staff

My CompanyPayments Receipts

Date Payee Ref No. (cheque, till and invoice ref no.)

Amount

Type (cash, cheque or card)

Date Payer Ref No. (cheque, till and invoice ref no.)

Amount

Type (cash, cheque or card)

01 January 2012computers r us 1

£ 579.00 cheque

01 January 2012

Small grants 442178

£ 2,500.00 cheque

18 January 2012rent 2 £ 350.00 cheque

22 January 2012paper wate 36145 £ 120.00 cash

28 January 2012tools and co 28719

£ 427.00 cash

29 January 2012Training to win 3

£ 750.00 cheque

£ 2,226.00

£ 2,500.00

BALANCE £ 274.00

A VERY SIMPLE CASHFLOW RECORD

Estimated annual expenditure £

Mortgage and/or rent

Council tax

Utilities (gas, electricity, water etc)

Personal and property insurance

General housekeeping expenses (food etc)

Phone and internet

Car tax and insurance

Car running expenses

HP repayments

Hire charges

Subscriptions to journals, professional bodies, etc

Savings plans & pension contributions

Contingencies

Tax

National Insurance

Other (please specify)

Other (please specify)

Other (please specify)

Other (please specify)

Other (please specify)

Total personal expenditure 0

Estimated personal income (after tax)

Income from family, partner (total)

Other income (specify the source)

Total personal income 0

Total survival income required from the business (after tax)

0

PERSONAL SURVIVAL BUDGETFOR 12 MONTHS

START UP COSTS

£

0TOTAL £

Other (please specify)Other (please specify)

Other (please specify)

IT and computersTelephones and broadbandEquipmentStock

Consumables

Other (please specify)

Association feesWages/recruitmentSecurity/health and safety equipment

Other (please specify)Market research costs

Professional fees

Training

ToolsVehicles

InsuranceRent/rent depositStationeryMarketing

Licenses

Cashflow forecast - first six months

Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast ActualINCOMECash from sales (incl. VAT) 0 0Cash received from debtors (incl. VAT) 0 0Capital/loans received 0 0Other (please specify) 0 0

TOTAL £ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EXPENDITUREWages to staff (incl. PAYE & NI) 0 0Premises (rent, rates & utilities) 0 0Telephone & Broadband 0 0Printing, post & stationery 0 0Advertising & promotion 0 0Bank charges 0 0Professional fees 0 0Insurances 0 0Bank/HP 0 0Equipment & vehicle leasing 0 0Capital Expenditure 0 0VAT 0 0Owner's wages/salary 0 0Owner's National Insurance 0 0Loan repayments (incl. interest) 0 0Stock 0 0Consumables (not direct costs) 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0

TOTAL £ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Income less expenditure 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Opening bank balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0Closing bank balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 TOTALSheet 1 of 3 - use the tabs at the bottom for sheets 2 and 3

Start-up 0 1 2 3 4 5

CASH FLOW FORECAST

PROFIT AND LOSS

Looks very similar to the cash flow but the information is based on what is happening in that period (month), invoices received or sent as opposed to cash being received or sent

Profit and loss forecast - Year one (first six months) Sheet 1 of 4 - use the tabs at the bottom for sheets 2, 3 and 4

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 TOTALForecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual

sales 1 0 0sales 2 0 0sales 3 0 0sales 4 0 0Total sales 0 0 0 0 0 0 0 0 0 0 0 0 0 0Less direct costs 0 0Gross profit (sales less direct costs) 0 0 0 0 0 0 0 0 0 0 0 0 0 0Calculate your gross profit margin (gross profit divided by total sales x 100) (A) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Salaries/wages (survival income + any staff) 0 0

Premises (including rent, rates, utilities) 0 0Telephone and broadband 0 0Printing, post and stationery 0 0Advertising and promotion 0 0Bank charges 0 0Professional fees 0 0Insurances 0 0Bank/HP/Interest (payable to your bank) 0 0Consumables (not direct costs) 0 0Equipment and vehicle leasing 0 0Depreciation 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0Other (please specify) 0 0Total overheads 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Net profit (gross profit less overheads) 0 0 0 0 0 0 0 0 0 0 0 0 0 0Calculate your net profit margin (net profit divided by total sales x 100) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Calculate your break even sales Forecast ActualEquals overheads (B) divided by gross margin % (A) 0 0

New Enterprise Allowance (NEA) NEA is available to Jobseekers Allowance (JSA) claimants aged 18 and over who has been claiming for 26-weeks or more. Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business plan and through the early months of trading. Once a claimant can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support. This will consist of:

a weekly allowance worth £1,274 over 26 weeks, paid at £65 a week for the first 13 weeks and £33 a week for a further 13 weeks,

and the facility to access a loan of up to £1,000 to help with start-up

costs, subject to status. The total package of support could be worth up to £2,274 to each participant who starts their own business.

You need to talk to your Job Centre Advisor for more information.

NEA Continued

Can be claimed up to 5 weeks after stopping JSA

Cannot be claimed if on the work programme, therefore claimants 18-24 have a window of opportunity of about 11/12 weeks and 25+ have 24/25 weeks before they are sent to the Work Programme

Housing Benefit and Council Tax issues need to be discussed with the City Council as you will no longer be a Job Centre customer