Are sales invoices really needed?

What is a sales invoice?

A sales invoice is a request for payment by the seller for goods or services provided.  It is important for businesses to raise sales invoices for many reasons. Some of these reasons are listed below:

 

  • For tax purposes, HMRC require companies to keep evidence of sales made for at least 6 years and up to 10 years in certain circumstances. Companies also need a record of all the sales made in order to complete the year end accounts and calculate the amount of tax owed.The details on the invoice will show what you have supplied which can then help protect a business against any disputes.
  • By reconciling the debtors on a regular basis will highlight any outstanding debts that need to be chased.
  • Analysing the invoices can also be a good marketing tool to see how, what, where and when the products and services are being sold and which employee is making the most sales.

What needs to be shown on an invoice?

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My Favourite Accounting Apps

These are just my favourite accounting apps and in the link to their website, which can be found by clicking the title, has no affiliate links that I benefit from.  There are obviously so many accounting apps out there that will help you sort out your finances and keep you on top of your paperwork and sometimes you just have to use trial and error to find the ones you are happy with. Continue reading “My Favourite Accounting Apps”

Women in Tax – Leicester

Last Thursday I attended the women in tax meeting at the RSM offices in Leicester. I wasn’t sure what to expect. Would it be formal? Would I have to talk about anything? I’m I intelligent enough to talk about anything tax related? It has been a while since I felt proficient in tax. The most I do now are personal tax returns. And I do generally leave it till the end of the year to really worry and think about them.  Continue reading “Women in Tax – Leicester”

What is Corporation Tax?

In its most simplest definition, if you have a limited company, you would need to pay tax on your profits.  This is called Corporation Tax. You would also need to pay corporation tax if you are an association, a club or co-operative.  If you are a sole trader or a partnership, your profit is not subject to corporation tax and any tax you have to pay will be through your self-assessment. Continue reading “What is Corporation Tax?”

What is income tax?

A dictionary definition and its simplest explanation, income tax is the tax levied on personal income that you earn.

What is personal income?

Personal income that is taxed in this way is made up of:

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The budget and the PAYE

Chancellor holding the iconic red breifcaseEvery year when the budget comes out you hear about taxes going up, the economy growing and unemployment going down. If you’re in employed work and receiving a monthly salary you might not really understand or care how the budget affects you. However, the salary you receive in your bank account is what you get after your employer has taken the PAYE. Your PAYE is made up of your national insurance contributions and income tax.  Continue reading “The budget and the PAYE”

My Top 5 Accounting Blogs

Here are my top 5 accounting blogs and why I like them.  There are a lot of other people that I do admire in the tax and accounting world who are not listed here as they don’t blog or they don’t have a website.  However, as I like to blog, I tried to focus on bloggers only.

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