Some basic questions for setting up accounts

wiredup

I wonder if anyone can tell me a couple of things.
I've been trading since June. Since that time I've kept every receipt and invoice relating to sales and purchases.

I've just purchased MYOB accountancy software. I need to get things in order.
So first question.

What is my financial year? I know in the UK it's April to end of March but I'm sure I read it might be December to last Nov in Ireland?

Myob is also asking me for a conversion month. I assume this is this month (sept) which is when I shall start entering the data?

Now my other question relates to recording sales. My sales are small items. So is it necessary to list each individual sale or can I just record a total of sales for say each month?

I'm a novice at all this but keen to understand the basics. Further down the line I'll hand it all to an accountant but at this stage I feel I should have a go myself. The myob manual looks pretty heavy :eek:

Any help appreciated.

The Bull McCabe

You haven't said whether you are trading as a sole trader or as a limited company,

If your trading as a soletrader and started in June '07 I suggest you do accouts up to 31 Dec 2007. - You will need these for your 2007 income tax return which will be due on 31st Oct 2008.

If your a limited company your accounting year end would be 12 months after incorporation.

not knowing the type of business you are in it is hard to see how you should keep your books and records, however you should open a business bank acocunt and lodge any receipts from sales here and pay expenses by either cheque or credit card, alternatively you can pay in cash but keep a cash book. - are you VAT registered?
look up Revenue.ie and see what level of sales demands you to become VAT resistered - its differs whether you are providing a service or selling goods.

Finally, as I said, I am unaware of the type of business you are in, but would suggest that you contact an chartered accountants office soon. You may think you are saving money by doing things yourself, but to be honest you possibly. - I would also suggest that it is easier use microsoft excel for keepin the likes of a cheques journal, direct debit journal and lodegement book - than try and figure out some accountancy software package - I have worked on The Big Red book before and found it user friendly.

I've seen clients bringing in what they believe is "accounts done" and it ain't. Sometimes it more trouble trying to sort out what a client had done than it would have been if they just dropped in the books and records at the start.

wiredup

Thank you for your reply.

I'm a sole trader. Retail is the business but not vat registered although I think I might move to that by the end of the year.

I think you might be right regarding the software. This myob is aimed at the non-accountant but so far it's just frustrating me. Will take a look at the big red book and give their trial a go. But as you say, maybe best to let an accountant sort it all out.

kluivert

I dont think MYOB is the best package but thats down to opinion.

The tax year in Ireland is based on the calendar year 01/01/07-31/12/07. As above I would recommend that you keep your financial year in line with the tax year. So if this is your first year trading, then get accounts done up to the end of the year i.e. 31/12/2007.

You will have to submit income tax return based on this financial year on or before 31st October 2008.

Sales. Do you have an EPOS system or just your average cash till.

If you have a cash till, you should be able to run off a print out from the till of sales for each day. In a book of some sort you should have to following records for each day:

Date:

Opening float:

+ Sales:

- Expenses paid by cash:

- Lodged:

Closing Cash Balance (This will be yoru opening float for the next day).

You should do a stock take at the end of the financial year as well.

ircoha

have u peeped at the MYOB forums for the myop questions: eg http://www.myobforum.co.uk/publicforum/

google for others