Clearlybookkeeping - Total Newbie!

[LisaP]

Husband has just started a business and bought me Clearlybookkeeping (Barclays version of QuickBooks) - oh what fun I'm going to have!

Whilst I'm at home on a computer and do our personal accounts online I'm totally new to book-keeping. I just thought I'd warn you, I am probably going to post some really dumb questions! ;o)

First one:
New Ltd company, haven't started trading yet, we have deposited some money into the business current account just to start us off (money we'll want back later) - how do we enter this?

Lisa

[RobJoy]

This money is a 'Loan from director'. In strictly accounting terms it should appear in the Balance Sheet as a Current Liability, but that type of account is not very convenient for this purpose, because of the limitations in QB on how you can use it. Create a bank account called 'Directors loan account'. Now use Transfer Money to move the amount from 'Directors loan account' to the company bank account.

The 'Directors loan account' will now show as if it is a bank account with an overdrawn balance.

In the future you might draw a personal cheque on the company bank account. Record it with the expense line in the body of the cheque window showing the 'Directors loan account'. This will reduce the 'overdraft'. Similarly for any company cheques used to pay personal expenses.

If you pay a company expense out of your personal funds, use the 'Directors loan account' as the bank account in Cheque or Bill Payment.

This way, your 'Directors loan account' will show a running balance of how much the company owes you.

Big P.S. Learn a bit about bookkeeping, or you'll be making life more difficult than necessary for yourself.

[LisaP]

Thank you!

I know I am on a very steep learning curve here!

Can anyone recommend a beginners guide to bookkeeping? Something really basic.

It took me a few moments to get my head around the idea that an account wasn't necessarily an account in a bank – durh!

Luckily my husband does have a better idea than I do as he is already in the business world – but not in finance. He has great faith in me that I will be able to cope. I do pick things up pretty quickly once I’ve had something explained to me (famous last words?).

Anyway I’m soooo glad I’ve found this forum – I’ve been trying to get on the CBK forum (specific to Clearlybookkeeping) for days with no success. At the moment the business hasn’t started trading and we anticipate a slow but progressive start during which time my husband will keep the day job. I’m carefully keeping all the bills and receipts, for the moment mostly little things like stamps. The idea is I can practice and then start all over again if necessary.

I will, most definitely, take your advice and learn at least the basic principals of bookkeeping. Does anyone know if business link or other organisations offer free courses?

Lisa

[RobJoy]

Your local adult education classes quite possible include courses leading to the AAT (Association of Accounting Technicians) exams. My ony warning about these is that they are very basic, and somewhat removed from the real world, you don't get to study VAT until the later stages! You may also find courses like 'Accounting with Sage' or 'Accounting with computers' (which usually means Sage).

Otherwise try putting 'bookkeeping' into the book search at Amazon. As I said recently in a reply on this forum, bookkeeping isn't rocket science, it's mostly a matter of logic, common sense & some new jargon. The big benefit of QB is that if you find out you've been doing something wrong for six months you can just change it all, you're not faced with a pile of indecipherable journal adjustments.

[Page]

Not sure what you are doing but and how much spare time you have but -

I started using QB at version 2 and at that time coulnd't find anyone to set it up for me.

I spent hours and hours and hours getting it right over a period of months and to some extent years.

They do now have a wizard to help but if you possibly can I would strongly advise paying someone to set it up and get you going. I reckon for most people that it would be more than cost effective.

Your efforts are best put into the helping run the business and then doing the book keeping using QB.

It can be set up in so many ways that it is difficult to know the best way without extensive experience of having used it.

Someone with experience could perhaps get you going with just a few hours work.

[LisaP]

Ok, I’ve been to the library and borrowed:

“Book-keeping & Accounting for the Small Business” Peter Taylor edition 2001.
“Teach Yourself Book Keeping” Andrew Lymer & Andrew Piper edition 2003.
“Accounts Demystified” Anthony Rice 4th edition 2003.
Also “Start Up & Run Your Own Business” Jonathan Reuvid & Roderick Millar edition 2003.

I’m not planning on reading them all (I’ve got a life…still!) but I thought I’d start by having a quick look and see which one makes the most sense to me – then I’ll have a go at understanding that one.

I’ve also found an accountant (I think) who understands that for the moment I have more time than money and we want to do as much as we can ourselves but we may need guidance. We have talked about a short but intensive questions and answers session and checking that we have set things up right + a reasonable amount of free telephone advice i.e. as long as he doesn’t end up doing my books from the other end of the telephone he’ll not charge me for a quick instruction on how to enter something new etc. I’ve got my fingers crossed that he has understood that if he gives us the support we need at the price we can pay in the beginning then we are going to stick with him when we are big and successful (thinking positive here!).

I will also play around with the sample companies and I don’t mind creating a company then wiping it and starting from scratch again. I think my next difficulty will be the items (not sure if that was the term) as the company will be providing a mixture of consulting and outsourcing services - but mustn’t get ahead of myself here…

Lisa

[Page]

I reckon QB2003 The Intuit Official Guide is worth every penny for a newcomer.

Far better than trying to use the help files etc.

It's geared for the US market so not perfect when it comes to VAT but it will explain all about items, registers blah blah - from a practical QB point of view rather than general bookeeping.

Good Luck with the new venture.

[Page]

Perhaps should have added available from Amazon UK all 600 pages of it.

[hartford]

Hi All
When Clearlybookeeping first came out I dismissed it as just a rebranded Quickbooks. But is it? Can anyone explain whether it has advantages over Quickbooks such as direct integration with Barclays on bank reconcilations?

[Page]

I see they are also advertising the 5 customised versions they have the states in my latest computer mag - not for profit - retail - contractors - consultants and property management.

[adamshaw]

If you have time i would do the AAT foundation course, this will teach you basic bookeeping but will also give you an insight into why things are done in specific ways.

You can do this on a part time or open learing basis.

[LisaP]

Thank you all!

Well I had a go at reading all the books and found that “Book-keeping & Accounting for the Small Business” Peter Taylor edition 2001 was the best adapted to my style of learning.

I feel a lot better already and have set up my sales and purchase invoice filing system. A combination of the book, software help files and replies here have given me a head start and I've been able to enter my bank transactions with reasonable confidence.

I'm not sure whether I've got the "class" part set up right yet - that will depend a lot on the way the business develops. I also still haven't found out whether I should enter a debit card transaction (me paying by debit card) as a cheque or not. Nobody has replied to that question so either nobody knows another way or it was a really dumb question! ;o)

I have also started reading “Start Up & Run Your Own Business” Jonathan Reuvid & Roderick Millar edition 2003 and begun developing a more professional marketing plan - just your average bank holiday weekend really...

Lisa

[kulture]

I would post the debit card transaction as a cheque payment from the bank account. BUT remember to blank out the cheque number.

[LisaP]

Thanks!

That's what I thought I should do. I'm planning on paying by bank transfer whenever possible and also by debit card as neither of these incur bank charges, unlike cheques which are charged at 54p each. My first 18 months of banking are free but I want to get into good habits.

I also want my clients to pay me by bank transfer whenever possible as this will also save me money and possibly them too (depending on their bank). I’m planning on editing my invoices to specify my preferred payment method and giving my bank account number and sort code. Don’t like paying the bank more than I have to!

Lisa

[kulture]

By the way, what business is it? You may find that there is a trade association which may be worth joining. Good trade associations negotiate deals with banks for their members which include cheaper banking. For instance I am a member of the british Shops and Stores association which has a fairly good deal with HSBC (cheques at 18p for instance!). Now personnaly I hate paying ANY money to banks but have not yet found a bank which has permanent free bankimg for business.

[RobJoy]

There's no such thing as a free lunch. Your business bank provides you with services, with no guarantee that you'll keep much money in your account which they can invest, so why do you expect them not to charge for their services?

[LisaP]

It's a consulting and outsourcing company specialising in operations and logistics.

Most of our business will be with larger companies so payment by bank transfer rather than cheques shouldn't be a problem. With Barclays It is free to make up to 20 and receive up to 20 payments by bank transfer per quarter, after that it's 54p out and 15p in. In theory our payments both in and out should be few but large (hopefully!).

All these charges does make you seriously want to just stuff it all under the mattress! ;o)