Thursday, September 23, 2010

Personal Accounting

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

Personal Accounting

If you have a bank account, of course you balance it periodically to account for any differences between what's in your statement and what you wrote down for cheques and deposits. Many people do it once a month when their statement is mailed to them, but with the advent of online banking, you can do it daily if you're the sort whose banking tends to get away from them.

You balance your cheque book to note any charges in your bank account that you haven't recorded in your cheque book. Some of these can include ATM fees, overdraft fees, special transaction fees or low balance fees, if you're required to keep a minimum balance in your account. You also balance your cheque book to record any credits that you haven't noted previously. They might include automatic deposits, or refunds or other electronic deposits. Your cbank account might be an interest-bearing account and you want to record any interest that it's earned.

You also need to discover if you've made any errors in your record keeping or if the bank has made any errors.

Another form of accounting that we all dread is the filing of annual income tax returns. Many people use an accountant to do their returns; others do it themselves. Most forms include the following items:

Income - any money you've earned from working or owning assets, unless there are specific exemptions from income tax.

Personal allowances - this is a certain amount of income that is excused from tax.

Other allowances - some personal or business expenses can be deducted from your income to reduce the taxable amount of income.

Taxable income - This is the balance of income that's subject to taxes after personal allowance and deductions are factored in.

Nottingham Accounting Solutions Ltd offer accounts, bookkeeping and payroll services in the Nottingham and Mansfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at