I need some help understanding the difference between Sales, Purchase, Cash and Bank records. Having read your guidance i understand the basic principles however remain a little confused with some things.
I am working both backwards and forwards due to not having the appropriate book keeping systems (before purchasing your software) so need to work back to April 11 so that end of year calculations will be possible. The only documents we kept were sales and purchase ledgers for VAT purposes. Firstly do all 4 records need to be completed to allow the automated end of year to work correctly?
According to the guidance 'sales and expenses are recorded on the Sales and Purchases workbooks not the cash and bank records'. This leaves me slightly confused. Do I then not put these into the cash and bank records as they do appear on the bank statement? Can you just explain further on what i should and should not enter on to these records.
Can you identify which of the records the following items go on and relevant code, will some go on more than one record?
wages paid by DD (on payroll)
bank charges (appear as DR on statement)
monthly paying off of an old credit card (MBMA card with minimum payment each month)
family loan repayments which come out as standing order on monthly basis
HMRC NI & tax payments
HMRC VAT payments
thanks for your help. once I understand it will be great, its just getting to grips with it at the moment!