How to use the Import Tool
Links
Steps
1. Navigate to the Import Tool page under Tools
2. Select what type of import you are undertaking
3. Upload the file
4. Match up required fields with corresponding data from uploaded file
5. Check the import is correct and confirm
How To Upload Scanned Expenses and Receipts
Help Article
How To Upload Scanned Expenses and Receipts
Links
Steps
1. Navigate To Bills
2. Click on upload document link
3. Upload File
Quickly create and apply a Credit Note against an invoice
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Quickly create and apply a Credit Note against an invoice
Links
N/A
Steps
1. Click options link in payment history section of invoice
2. Enter details and apply credit note
Create and apply a credit note against a customer invoice
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Create and apply a credit note against a customer invoice
Links
Steps
1. Navigate to the Credit Notes page under.
2. Click New Credit Note and fill in details
3. Apply the Credit Note against an Invoice
4.Check the credit note is applied successfully
How to record Corporation Tax in your accounts
Help Article
How to record Corporation Tax in your accounts
Links
Steps
1. Navigate to bills
2. Create a new bill with HMRC details
3. Confirm invoice
4. Perform a Bank Import
5. Match Up HMRC with payment for Corporation Tax
6. Click create transactions
How To Set Up Purchase Orders
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How To Set Up Purchase Orders
Links
Steps
1. Navigate to Purchase Orders page
2. Fill in purchase order details
3. Click save draft to upload purchase order
How To Explain A Bank Transaction Made Up Of Multiple Payments
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How To Explain A Bank Transaction Made Up Of Multiple Payments
Links
Steps
1. Navigate to Manage Money page.
2. Explain the different payment amounts within the transaction.
3. Repeat explanations for each part of payment until the whole transaction is explained.
4. Click create transaction button and check that the transaction is approved.
Double Entry Accounting; What Is It?
Double Entry Accounting is a form of recording financial transactions for businesses. In its most basic form double entry accounting is a system where all debits and credits must balance. In double entry accounting for every action there must be a reaction within the accounts.
The basic equation by which double entry accounting works is shown below:
Assets = Liabilities + Equity
Effectively for everything a company owns (Assets) there is a claim against it (Liabilities+Equity) whether it be due to owing the bank, or owing a sharholder who has paid money into the company. Liabilities come in the form of both long term (bank loans) and short term (overdraft, trade credit), equity is shown on the balance sheet under shareholder’s capital and represents those that own a part of the business.
Example
A company makes a purchase of £1000 worth of stock, the company takes out a loan for £1000 to pay for this. The purchase of £1000 of stock is a debit and therefore it needs to be countered with a credit, which in this case is the loan of £1000.
This would result in two changes to a companies balance sheet.
- An increase would occur in the company’s long term liabilities (a long term liability is any payment that is owed after 1 year).
- The company would see an increase in stock, this is reflected on the balance sheet through an increase in current assets (a term given to items that can be turned into cash within a year).
Double entry accounting has therefore resulted in the action of purchasing stock having a reaction in the form of an increase in long term liabilities due to the loan.
Double entry accounting can also be seen when a change happens on either side of the balance sheet, for example instead of taking out a loan to purchase the £1000 of stock the company uses cash (which would appear under current assets) to buy the stock. This would then result in an increase in stock and a decrease in cash, both changes occur within the current assets section of the balance sheet.
What is a single entry accounting system then?
The difference between a double entry and a single entry accounting system is basically that a single entry is just that, it does not have another entry to counter it. The total of all transactions are merely added up to give you a profit or loss.
The reasons why you would choose double entry over a single entry accounting system include:
- It is easier to prepare submittable accounts from a double entry accounting system.
- Any mistakes are easier to spot due to the fact that if something is wrong the accounts will not balance, or in other words debits will not be equal to credits.
- Double entry accounting systems allow you to have assets and liabilities recorded.
Computers can do the hard work for you
If you are keeping records by hand then for every purchase or sale you would then have to write down the other side of the transaction. If you are using double entry accounting software then the software will calculate both sides of a transaction automatically, making double entry accounting that little bit easier.
Abbreviated Accounts
Abbreviated accounts can be created automatically from within Clear Books as a pdf report. Limited companies must submit their accounts to Companies House at the end of each financial period. Depending on fulfilling the exemption criteria small companies need only submit abbreviated accounts which are a watered down version of a full set of accounts. It is strongly recommened that your accountant reviews your abbreviated accounts as abbreviated accounts submitted to Companies House are a legal document. You need to ensure that they are complete and reflect a true and fair view of the company’s financial position. For example, are the accounting records complete with journals to account for the depreciation of fixed assets during the year and a provision for your corporation tax liability? The data for the abbreviated accounts is generated from the underlying data in Clear Books with company information taken from your Organisation settings page and share structure data entered by clicking on the Edit share structure link as shown below.
How To Transfer Money From One Bank Account To Another
Help Article
How to transfer money from one bank account to another
Links
Steps
1. Select account to transfer from
2. Enter how much money you are transferring and from which account; click explain
3. Check details are correct select bank account to transfer to; click confirm transfer