 It is especially important if you are starting a new business that you get a proper record keeping system in place from the beginning.  Good record keeping saves you time and accountancy costs  Avoid penalties for mistakes by proving you've taken reasonable care in your record keeping  Comprehensive records enable you to have all the information you need when planning strategy  Accurate records help you keep track of cash flow  Business planning and record keeping go hand in hand  Be in control – tracking all your important trends means no unpleasant surprises KEEPING RECORDS

THE RECORDS YOU NEED TO KEEP All businesses are required to keep a record of all sales and takings, including cash receipts. Records include:  till rolls  sales invoices  bank statements  paying-in slips  accounting records These records allow you to quickly see what you are owed and accurately work out your total income. You must also keep a record of all purchases and expenses, including cash purchases. These records include:  receipts  purchase invoices  bank and credit card statements  cheque book stubs These records allow you to quickly see what you have spent, how much you owe and what you can claim for tax purposes. OTHER RECORD THAT MAY NEED TO BE KEPT VAT records- If you register above £77,000 compulsory Employment records- If you employ staff

My Company PaymentsReceipts DatePayee Ref No. (cheque, till and invoice ref no.) Amou nt Type (cash, cheque or card) DatePayer Ref No. (cheque, till and invoice ref no.) Amou nt Type (cash, cheque or card) 01 January 2012 computers r us1 £ cheque 01 January 2012 Small grants £ 2,500.00cheque 18 January 2012rent2 £ cheque 22 January 2012paper wate36145 £ cash 28 January 2012 tools and co28719 £ cash 29 January 2012 Training to win3 £ cheque £ 2, £ 2, BALANCE £ A VERY SIMPLE CASHFLOW RECORD

Estimated annual expenditure £ Mortgage and/or rent Council tax Utilities (gas, electricity, water etc) Personal and property insurance General housekeeping expenses (food etc) Phone and internet Car tax and insurance Car running expenses HP repayments Hire charges Subscriptions to journals, professional bodies, etc Savings plans & pension contributions Contingencies Tax National Insurance Other (please specify) Total personal expenditure0 Estimated personal income (after tax) Income from family, partner (total) Other income (specify the source) Total personal income0 Total survival income required from the business (after tax) 0 PERSONAL SURVIVAL BUDGET FOR 12 MONTHS

START UP COSTS

CASH FLOW FORECAST

PROFIT AND LOSS Looks very similar to the cash flow but the information is based on what is happening in that period (month), invoices received or sent as opposed to cash being received or sent Profit and loss forecast - Year one (first six months) Sheet 1 of 4 - use the tabs at the bottom for sheets 2, 3 and 4 Month 1Month 2Month 3Month 4Month 5Month 6TOTAL ForecastActualForecastActualForecastActualForecastActualForecastActualForecastActualForecastActual sales 1 00 sales 2 00 sales 3 00 sales 4 00 Total sales Less direct costs 00 Gross profit (sales less direct costs) Calculate your gross profit margin (gross profit divided by total sales x 100) (A) 0% Salaries/wages (survival income + any staff) 00 Premises (including rent, rates, utilities) 00 Telephone and broadband 00 Printing, post and stationery 00 Advertising and promotion 00 Bank charges 00 Professional fees 00 Insurances 00 Bank/HP/Interest (payable to your bank) 00 Consumables (not direct costs) 00 Equipment and vehicle leasing 00 Depreciation 00 Other (please specify) Total overheads Net profit (gross profit less overheads) Calculate your net profit margin (net profit divided by total sales x 100) 0% Calculate your break even sales ForecastActual Equals overheads (B) divided by gross margin % (A) 00

New Enterprise Allowance (NEA) NEA is available to Jobseekers Allowance (JSA) claimants aged 18 and over who has been claiming for 26-weeks or more. Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business plan and through the early months of trading. Once a claimant can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support. This will consist of:  a weekly allowance worth £1,274 over 26 weeks, paid at £65 a week for the first 13 weeks and £33 a week for a further 13 weeks, and  the facility to access a loan of up to £1,000 to help with start- up costs, subject to status. The total package of support could be worth up to £2,274 to each participant who starts their own business. You need to talk to your Job Centre Advisor for more information.

NEA Continued  Can be claimed up to 5 weeks after stopping JSA  Cannot be claimed if on the work programme, therefore claimants have a window of opportunity of about 11/12 weeks and 25+ have 24/25 weeks before they are sent to the Work Programme  Housing Benefit and Council Tax issues need to be discussed with the City Council as you will no longer be a Job Centre customer