Recording business transactions does not require expensive accounting softwares. Most businesses prefer old fashioned Microsoft Excel spreadsheet to record business income and expenditures. Keeping accurate business records is important and recording business transcations regularly can help you plan ahead and reduce the stress of year-end tax filing (e.g Self-Assessment Tax Return)
Free Excel Bookkeeping Template
We have created free Excel business income & expense bookkeeping template to download. These free Excel bookkeeping templates can be used by anyone and any small business. The spreadsheet contains 2 worksheets, the template is easy to use and can be customized to your business requirements. You can change the fonts, layout, add extra columns and rows and adjust it according to your needs.
Recording Expenses & Income
The first worksheet can be used to record business expenditures. The spreadsheet contains two worksheets, the first worksheet is for recording expenses (bank, receipts, credit card etc). The second workheet is for recording business income. You can add or delete unwanted columns and delete or insert more rows.
The first step is recording the transactions (Date, Description and amount). What expenses can be claimed will depend on the nature of the business and whether or not these expenses are deductible for calculating the income tax (for example HMRC does not allow any depreciation expenditure when calculating taxable income). Check out this blog for more info Self-Employed Expenses. The second step is categorising the expenses.
The second step is categorising the expenses:
The second worksheet can be used to record business income. You can add or delete unwanted columns and delete or insert more rows.