While there are many options available, Microsoft Excel and Google Sheets are two popular choices that are user-friendly and affordable. The first step in creating a simple bookkeeping spreadsheet is choosing the right spreadsheet program. By keeping accurate records of these transactions, you can track your business's cash flow, monitor your expenses, and prepare for tax season. Bookkeeping is the process of recording and organizing your business's financial transactions, including sales, purchases, payments, and receipts. Understanding the Basics of Bookkeepingīefore you start creating your bookkeeping spreadsheet, it's important to understand the basics of bookkeeping. In this article, we'll guide you through the process of creating a simple bookkeeping spreadsheet for your business. By creating a simple bookkeeping spreadsheet, you can keep track of your income and expenses, monitor your cash flow, and stay on top of your financials without breaking the bank. Post out to the client as you would a sales invoice.Bookkeeping can be a daunting task for many small business owners, but it doesn't have to be. You want to keep lots of detail put it on a separate sheet of paper toįile away with the copy of the credit note. In the description column be sure to indicate which sales invoice Negative sign next to the value (like this -$5.00). Template replacing the words ‘Tax Invoice’ with ‘Credit Note’ and put a You can use the exact same layout as your sales invoice To ‘cancel’ out a sales invoice when an unsatisfied customer returns a product.A customer complains about the product and you decide to give them a discount.An error has occurred such as an overcharge.Credit NoteĪ Credit Note is usually produced to reduce the total of an invoice in the following scenarios:. So you need to research what bookkeepers normally do in your country for sales discounts also known as discounts allowed. In places like the UK or New Zealand, a sales discount is often recorded as an expense. You can open a Sales Discount income account on your Chart of Accounts. gross sales minus sales discounts equals net sales. In the USA, discounts are usually not an expense to your business but are rather a reduction in sales i.e. A customer buying 100 hats could well deserve a discount of 20% as long as your original markup per hat still allows you some profit after this discount. Here again you need to decide what your limits are. If a discount encourages them to pay on time at least you are getting the money in and not wasting energy, time and money on chasing overdue payments.īulk Discounts You can also offer a discount to customers who buy in bulk. Most people love to know they can pay less than they have to. Just be sure you can afford the discount. A blank line onto which they can write how much they are paying (if they are not paying the whole amount).Įarly Payment Discounts You could offer an early payment discount of say 10% as an incentive for the customer to pay cash before receiving delivery, or to pay by the due date if you extend credit.This is a bit of paper the customer can return to you with their payment so that you know who it’s from and what sales invoice it is for. You can break it down to two - Service Income and Parts Income The Remittance Slip Hint: Sales are coded to the Income account in your Chart of Accounts. Your payment terms should indicate whether you want cash onĭelivery, or payment within 7 days or by the end of the month following.Your early payment discount terms if you provide them.A subtotal below the ‘Cost’ column (optional).These can both be included on the same invoice. Many businesses provide both service and parts in the same job (like a plumber spending time fixing a sink - the service, and providing the replacement parts - the items). It looks more professional to use all the columns so it depends on your situation. ‘3 x hats $5.00 each’ with the total of $15.00 in the ‘Cost’ column. The above optional items are optional because youĬould put a one-line detail into the ‘Description’ column.
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