Many ADI’s underestimate the need for keeping correct accounts and having an audit trail.
I am amazed how many still use pen and paper with the shoe box mentality for receipts. Other practices like using cash instead of card payments and using customers lesson cash payments to purchase goods and services like fuel with no accountable audit trail.
The vast majority of our franchisees use VT cashbooks which is a FREE downloadable accounts software (Not for Mac.)
http://www.vtsoftware.co.uk/vtaccounts/download.htm
VT Cashbooks is really simple accounts software where you just add your lesson weekly/monthly sales and related expenses.
So in one column will be lesson sales.
In the expenses column will be item such as:
Car payments
Franchise payment
Fuel
Phone
Vehicle insurance
Marketing
Livery
Plus anything else that is a cost of supplying your service.
Accounts can be updated weekly or reconciled with your bank account statement each month. It’s a real good idea to bank all sales income, preferably with your customers paying by BACS or card. To bank cash will usually incur a cost and cheques just take so long to clear.
Place all of your receipts into an A4 binder for your current trading year for reference and storage.
When you reach the end of your trading year, you simply save the complete file and email to your accountant, who will then be able to prepare your annual accounts and inform you when and how much to pay.
There is generally no requirement to send your receipts to your accountant as long as you sign off accounts as correct.
£150 for prepared accounts, BONKERS not too!
I have worked with my current accountant since 2009 and he will offer you the exact same service I have for just £150 per year. Please see details below”