How to expand your records as your business grows?
Analyzed cash book
You might want to know some management information regarding your expenses as your business grows. As income increases, the costs also will increase. Therefore, it is vital to know about your expenditure. For example, you might want to know how much you have spent to increase your sales. In addition, you might be selling different types of products and want to know how much sales each product brings in for you. https://youtu.be/0K6-rS71x
Add a few more columns to your cash book.
If you want to know the income and expenditure this way, start adding more columns to your cashbook. Then at the end of the week or month, when you get the totals, you will know how much you spent and earned as well. That said, I have made a point here that figures will not be the full financial information because you will not know how much is receivable or payable. Therefore, it could be a starting point for you to understand your business’s accounting basics. https://amzn.to/2Qbvs1t
How to keep the book
I have created this cashbook only for payments, and now you will find it easy to make one for sales like this. In this type of cashbook, you can enter the total you spent on an item in the amount column and then extend that to the particular expenditure column. Sometimes the total amount in the entire column indicates the expenses on a few things. Therefore, you need to allocate it accordingly.
VAT calculation
You can also adjust the headings of the columns according to the need of your business. If you claim VAT, you can enter the total amount there and finally calculate the vat payable amount when you get the totals of the columns. The transactions are usually entered weekly, and get the accommodations at the end of each month. Therefore, you will know, for example, how much you spent advertising at the end of the month.
Then at the end of the month, when you get the totals for all the columns, make sure the sum of all the analysis columns is equal to the amount in the total column. Another point is that you might be using a credit card for purchases, so regular payments need to be analyzed separately; if not, your calculations for your income will not be correct.