Spreadsheets/bookkeeping tools

[INeedNewShoes]

Evening...

I'm quite new to being a freelancer and 2015–16 is my first full financial year of having to do a tax return.

I could do with recommendations of either a cheap (or even better, free) programme to use to record my income and expenses, or a spreadsheet template, or just an image of a spreadsheet where I can copy the headings.

I'm already keeping a simple workbook with Sheet 1 as Outgoings and Sheet 2 as income but I haven't been splitting them into the relevant categories for filling in my HMRC tax return (stationery, assets, things like that I think?).

Any pointers?

so i believe that a spreadsheet with one page for income and one page for outgoings and another for milage, along with invoices, bank statements and receipts should suffice for your accountant.

AN ACCOUNTANT SHOULD SAVE YOU MONEY!

:-)

Thanks EssexMummy

If it's as simple as that then I should be fine with what I've got.

To pay an accountant would probably cost 10% of my annual freelance income just at the moment (it's a new business I'm setting up, alongside working 3 days a week in my old job), so that's something I'd like to avoid at this point.

Your accountant could save you more than they cost - you don't have the knowledge to be able to complete your own tax return and will not be aware of the rules, what is allowed, extras that can be claimed, etc

VTsoftware do a free downloadable cash-book system which is excellent and has all the analysis headings you need, as well as a bank reconciliation facility to help make sure everything is recorded correctly. I've been using it for dozens of clients' book-keeping for years and have loads of clients using it.

Hand-written books and spreadsheets will be obsolete in a couple of years when HMRC bring in their "digital" system requiring businesses to upload their transactions every 3 months instead of year end accounts/returns, so it's sensible to get proper book-keeping system in place now rather than have to change over in a couple of years.

My preference is Xero, simple and straightforward, designed with us small business types in mind but works for the bigger boys also. Find an accountant who uses it, and year end accounts (that you should get someone else to do) will be super simple! Am using Kashflow at my pt job at the moment and is no where near intuitive enough for me.....

Thanks for the further recommendations. I have a look into these and decide which seems most approachable.