A powerful example of motivation in action, the need to avoid pain is a stronger motivator than the desire for pleasure.   While we can all dream about the future and visualise financial abundance and stress-free living, we are unlikely to achieve success unless we attach psychological pain to not achieving what we set out to do.

When things are going pear shaped, the motivation to avoid pain kicks in and sharpens our minds to what needs to be done.   This is true of every area of our lives, from losing weight to relationships to finances: If you see a photo of yourself and don’t recognise the person with six chins and bulging belly, you are likely to be motivated to stock up on salad and walk straight past the biscuits and crisps when out shopping.   If you come home and find your partner with a suitcase in the hall, you might feel motivated to work on ways to improve your relationship.   If you have logged in to your business bank account to pay wages and find no funds are available, you might feel motivated to chase outstanding payments from customers.

Don’t get too comfortable

The most dangerous time for losing sight of our dreams is when we become ‘comfortable’.   You might be three months into your healthy eating plan when you have lost a stone and are feeling good about yourself. You still have another stone to lose but the pain of seeing the six chins is a distant memory, and that cake looks sooo good…. Uh Oh!

You might have gone to a few couple’s counselling sessions and have put effort into spending quality time with your partner and they seem to be happy again now, so it probably won’t hurt to book that trip away with your mates, even though it’s on your anniversary – you will make it up when you get back….Don’t do it!

You may have spent three months working hard on collecting in your debts from your customers and have a fat balance in the bank. You can breathe again! No need to keep badgering everyone for money so you relax and let your reserves slowly dwindle away, until the tax bill you forgot about suddenly bites you on the backside… Oops!

And so the cycle goes on, moving away from pain, becoming comfortable, and then slipping back towards pain again. Sadly, 95% of the population live their lives this way; losing the same stone year after year; moving from one bad relationship to the next; wondering if they will be able to pay their bills from month to month.

To become one of the few who achieve real success in life you must absolutely refuse to settle for the mediocre.   I am not just talking material success here, but lasting happiness and fulfilment. You must have the highest expectations of yourself and feel horror at the thought of getting to retirement age and wishing you had pulled your finger out and really done something with your life.

Fast forward to the future

What do you want to remember when you are ninety? Will you be sat in your rocking chair reflecting on a murky stream of joyless days, stressed at work, coming home and flopping in front of the telly?  Will your cupboards be stocked with Slim Fast as you attempt to lose weight for your great-granddaughter’s christening?

Your rocking chair scene is your ultimate destination, and you can affect the quality of your experience by the choices you make today.  By continuing a cycle of pain-contentment-complacency-pain, you are likely to end up in an eternal queue for the hot Port-a-Loo with your finances, relationships and health always just a short distance from ‘stinks’.

Once you get past the inertia of living a middle-of-the-road existence, you will find your dreams and goals have a magnetic field of their own, but you need to get close to them before they really pull you in.  Wouldn’t you rather be remembering the risks you took, the challenges you faced and the fears you conquered?

What has been the biggest thrill in your life so far? How could you achieve something even bigger and better?

Decide right now what you want really want out of life. If you have tried and failed in the past, ask yourself what you can do differently this time.  And, most importantly, decide that your journey will be enjoyable.  You may have to step out of your comfort zone to reach your goals but that’s no reason to be unhappy. Listen to your emotional navigation system – if you are on the right course it will feel good no matter how much effort you are putting in.

“Success is not the result of spontaneous combustion. You must set yourself on fire.”
–Reggie Leach

Light the blue touch paper today!!!

Written by Vicki La Bouchardiere – www.venture-coaching.com

1. From the Welcome screen, click on Set up books on the menu bar.
2. Click on the Set up VAT codes option.

You will then see this screen:

This is a single screen that shows the VAT rates that you can change if legislation is altered. The old rates are on the left and in the middle, the current rates are on the right. The start date at the top of the column defines when the changes were made, and the system will then apply the correct rates to items either side of the date of change.

Enter the date of the latest VAT rate change and alter the rates accordingly:

Rate 1, 2, 3 and 4 can be used for alternative rates, so that when entering data, instead of choosing rate S to calculate the standard VAT rate, you can use rates 1, 2, 3 or 4 to calculate a different rate. An example of this would be rate 1 being 5% for some fuels or building rates within the construction industry.

Cash based VAT Y/N

The other part of the VAT setup involves deciding if you are running cash-based VAT or not.

Under the cash accounting scheme, you only account for and pay VAT to the VAT office when your customer pays you, and when you pay your suppliers. This means that if you don’t get paid by your customers, you don’t have to pay the VAT office the VAT, although scheme users can’t reclaim VAT on purchases until they pay their suppliers. It is ideal if your customers take a long time to pay you, and can help your cashflow.

Your accountant can advise you further on this decision, and the system will also allow you to make the change during the year, so long as you put the date of change either from or to cash accounting. The reporting will do the rest.

Important

This change should only be made at the start of a VAT period, and done before entering any transactions for that period.

If you are using the cash accounting scheme, as you pay off invoices through the Payments and Receipts cashbooks you will see the VAT totals recorded in a separate box just below the page total VAT.

If you are unsure about any of the VAT settings and how they affect your cashflow and reporting to the VAT office, then please do not hesitate to contact us.

If you find yourself using all the available lines in a book for a particular month, simply create another instance of that month on the summary page and you will have another 300 lines to use. Use the Notes column to help distinguish the parts that make up the selected month, e.g. “January 2009 (1/2)” and “January 2009 (2/2)”.

What the summary page shows you

You are shown the following details for each month:

1. Total of bank receipts
2. Total of bank payments
3. Bank balance
4. Total of cash receipts
5. Total of cash payments
6. Cash balance
7. Total value of sales invoices issued
8. Total value of sales invoices paid
9. Total unpaid sales remaining outstanding (due to you)
10. Total of purchase invoices received
11. Total value of purchase invoices paid
12. Total value of purchases remaining outstanding (due for payment)

Brought-forward and carried-forward totals

The figures in the B/F Totals boxes at the top and C/F Totals boxes at the bottom of the summary page show all the balances brought forward from your previous accounting period, and carried forward to the next accounting period. These figures include the bank balance, cash balance, unpaid sales and unpaid purchases.

Page totals

The figures in the boxes at the bottom of the screen will give you the totals to date, for every column.

Access to all of the books (Sales day book, Purchase day book, Receipts cash book, Payments cash book) is available from this page. Simply click on the line for the relevant month, then click one of the buttons on the tool bar, or press the corresponding keyboard shortcut.

If you move to a different page and then come back to the summary page, the cursor will always return to the current calendar month.

Totals will be automatically recalculated after you have entered data in one of the books and then saved the data with the F12 key.

Inserting new lines

Inserting new blank lines on the summary page is done in the same way as in other pages – place the cursor on the line below where you want to insert a new line, then press Alt + F7 on the keyboard.

Inserting subtotals

Subtotals can be inserted in two ways – by placing the cursor below the line where you want the subtotal to be inserted, then either pressing Ctrl + F3 on the keyboard, or by clicking the Subtotal button on the tool bar near the top of the screen.

Deleting subtotals

To delete a subtotal, highlight the line by pressing the F9 key (you can highlight multiple subtotal lines by pressing F9 on each line), or by double-clicking the line number(s), then simply press the Delete key.

Printing the screen

As with any of the main pages in the system, you can print the current contents of the screen by clicking Print on the menu bar at the top of the screen, then selecting Print current screen. You can also press the Alt + F6 keys.

Showing unpaid sales and purchases

If you want to see a list of unpaid sales, press the F2 key on the summary page. The Select personal code dialogue box will appear. To show all unpaid sales, leave the selection blank. To show unpaid sales for a particular personal code, select the code in the list.

To see a list of unpaid purchases, press the F3 key on the summary page. The Select personal code dialogue box will appear. To show all unpaid purchases, leave the selection blank. To show unpaid purchases for a particular personal code, select the code in the list.

Quick VAT lookup

At any time you can check the VAT return figures for a specific period. To do this, press the F4 key, or click Utilities on the menu bar, then select Quick VAT lookup. You will be shown the VAT account dialogue box, where you will need to enter a start and end date (in MM/YY format) and then click the Calculate button. You will then be shown the calculated VAT return figures for the chosen period.

Note: This report should not be used for your actual VAT return. It should just be used as a guide. For VAT reporting you should use the Print VAT account option from the Print menu.

If you have any questions about using the summary page, or any other part of Prime Entry, please do not hesitate to contact us.

The Sales day book

The main areas of the Sales day book include:

1. The Invoice No column
2. The Customer Details column
3. The Invoice Total, Vat ind (VAT indicator) and VAT Output columns
4. Up to four named columns used for nominal anaylsis
5. Columns for further nominal analysis
6. Totals for the various columns

Data is entered across the columns, starting with the Invoice No column. The system will automatically calculate the VAT amount in the VAT Output column once a VAT indicator has been entered into the VAT ind column. The remaining amount should then be allocated to either one of the four named columns, or alternatively, into the A/c code column.

Importing sales invoices

Prime Entry can import sales invoice data from comma-separated values (CSV) files from any software that supports exporting to that format, including our own invoicing software, Prime Invoicing.

To import a sales invoice into Prime Entry:

1. In the Sales day book, click Utilities on the menu bar.
2. Move the cursor down to Import facilities.
3. Select the Import sales invoices option. The following dialogue box will appear:
   
4. Select the CSV file you want to import from, then click the OK button. The following message will be displayed, showing details for the imported file:
   
5. Click the Yes button to confirm the import and the data will be imported. You will be shown the following screen:
   
6. The upper part of this screen shows the end of your current list of sales invoices. The lower part of the screen shows the data that has been imported. You will notice the numbers at the top of each column. This allows you to match data from the imported file to the columns you have already set up.
7. Press the F9 key on each line you want to import into your day book, or press Ctrl + F9 to highlight all lines.
8. Press the F12 key to save the changes and complete the import process.

The Purchase day book

The main areas of the Purchase day book include:

1. The Voucher No column
2. The Supplier column
3. The Total Amount, Vat ind (VAT indicator) and VAT Input columns
4. Up to four named columns used for nominal anaylsis
5. Columns for further nominal analysis
6. Totals for the various columns

The breakdown screen

If you need to input more complex purchases, a feature of Prime Entry that you will find useful is the breakdown screen. This lets you break down complex transactions that may need to be allocated to multiple nominal or cost centre codes.

To break a purchase down into a breakdown screen:

1. Firstly, you will need to enter the voucher number in the Voucher No column.
2. Press the Alt + F9 keys to enter the breakdown screen. You will now have an extra 300 lines to enter the details of the transaction.
3. Once you have finished, press the F12 key. You will be taken back to the Purchase day book. Your breakdown entry will be shown in blue, with a “B” shown in the VAT ind column, and “BREAKDOWN” shown on the information bar at the bottom of the screen.

Sorting data in the Sales and Purchase day books

If you find that you need to sort data by a certain column, you can use the Sort by specified column option from the Utilities menu on the menu bar, or simply press the Ctrl + F2 keys anywhere on the Sales or Purchase day books. You will see numbers appear at the top of each column, and a dialogue box will appear:

Enter the number of the column which you want the data to be sorted by, then click the OK button. The data will be sorted into the required order.

If you have any questions about using the sales and purchase day books, or any other part of Prime Entry, please do not hesitate to contact us.

Where do you want to be in 5 years time?

What is stopping you from achieving your goals?

What are you worried about?

Running a business isn’t always easy, but with the right help and support, good systems and disciplines we can help you run a more profitable and enjoyable business…

A great friend of ours says, “Most people get into business to express a skill, and often forget or simply just don’t know how to make money”

prime entry has the solution to almost all problems… – either we know how to help you, or we know someone who can…

Please have a look around this site, use it and feel free to add comments or send questions, maybe you will get some inspiration, or maybe you would just like to talk to us, call or send an email, our initial meetings are free.

I often ask, “What’s the plan this year? What are you trying to achieve?” and I get a mixed response, including:

• “We will keep going and see what happens!”
• “Cut my cloth, cut back on some costs”
• “Look for something else we can do along side this”
• “I need to get more organised and stay in control”
• “I want to expand and increase my sales and profitability”
• “I’m not sure, things look bleak…”

A mixture of responses…

The big message I am telling everyone is:

Planning, planning, planning – if you keep doing the same thing and expect a different result then surely that is madness!

You must identify what it is you are trying to achieve, and write it down. Only when we write something do we truly think about it. A financial plan must then be drawn up, as well as a budget, and then a cash flow projection.

What is a business plan?

A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to measuring success within your business.

What is a budget?

A budget is a set of projected figures for sales and costs and is usually based on when sales are made and when costs are incurred. The report should predict the future profitability of the business, showing seasonal or peak/low activity trends. The budget in conjunction with the business plan should identify the viability of the future success of the business.

What is a cash flow?

People often get cash flow and budgets muddled. The cash flow in simple terms is a prediction of the future bank statements of the business. This is a report that is a by-product of the budget and takes account of time delays between when sales invoices are issued and monies received and purchases made and bills paid. Simple dramatic effects can be demonstrated in the cash flow report with scenarios such as the difference between giving customers 40 days credit or 20 days credit, it could mean the difference between going over your overdraft limit or nor being overdrawn at all!

Useful links

The Business Explorer is the brainchild of Ian Thurgood, a chartered accountant who is also an expert in strategic planning and skilled in raising finance for future growth. Having been involved with local businesses for over 30 years Ian now feels the time is right to introduce the concept of the freelance finance director to clients old and new.

Venture Coaching provide full life coaching packages for personal, business or corporate clients. Whether you’re looking for direction in your personal life, to push your business forward or to build your staff into dynamic working team, Venture have the expertise to help you achieve your goals.

What is your plan for this year? What are you trying to achieve?

If you are unsure, or haven’t thought about a plan, or just need some guidance, send me an email to kevin@primeentry.com with your thoughts and questions. At Prime Entry we have a wealth of knowledge within the team which we can use to help you work out what you want to achieve, and then put plans together to help you achieve it.

For more information, contact us.

Kind regards,

Kevin Whitehouse
01747 826989
kevin@primeentry.com

If you feel this way about your business books then you must act fast and employ the services of a good bookkeeper, at prime entry we offer a fixed price bureau service, just contact us for a free quotation..

On the other hand if you have a keen interest in keeping the books of your business, then you must follow some basic principles.

• Firstly you have a statutory obligation and responsibility to do this job well, the penalties for not doing so include:  (and we genuinely see this happen to people every year!)
  • Not knowing how your business is performing, and thus potential failure and bankruptcy
  • Being investigated by the Inland Revenue and fined
  • Being struck off and banned as a director
• Bookkeeping is the recording of transactions as they occur, these transactions are recorded in the books of “prime entry”.  You need to identify the type of mechanism to record your Sales and Purchase Invoices, Money in and Money out.
  • This can be a traditional hand written ledger or cashbook
  • A spreadsheet
  • A computerised bookkeeping system
    • The most popular in the market place is Sage and many others like it, but in the hands of a poorly trained operator it can prove useless
    • We obviously recommend our own software, so please click on the link to the right for a 30 day trial
• Whatever system you choose you must get the correct training to record the data correctly and then perform the key reconciliations
  • Bank reconciliation
  • Cash reconciliation
  • Debtors control
  • Creditors control
• If you are registerd for VAT you must take the time to study and identify places where you can keep up to date with knowledge on your specific industry, www.businesslink.gov.uk or www.direct.gov are 2 very useful sites.  Failure to do this could cost you hard cash, by not declaring the correct figures.  Make sure you understand the importance of Cash Accounting schemes and if they apply to you or not.
• From your bookkeeping records you will start to build up some good data about the past, from sales analysis to overheads, using this data can help you prepare a budget and plan for the future
• If you are thinking about raising finance now or in the future, the recent banking crisis now means that you will not even get past the first hurdle with any lender unless you have up to date accounts, management accounts and a detailed business plan, cash flow and budget.

Why not add your tips and comments here below:

Are you or do you know someone who is a member of “the late-night bookkeeping club“?

The problem

It’s been a busy week running the business. Perhaps there are feelings of being under pressure. Everyone is fed up with the weather, and moaning about the recession. Suddenly there’s the realisation that the VAT return is not due next week, but this week! The only time left to do it is in the next few evenings.

The rush

So, the records have been gathered together, along with bills, invoices, bank statements, and cheque stubs, and they are whisked home and set up in the “home office”. Sitting on the sofa, a glass of wine in one hand, the TV remote in the other, the task is started. You’re convinced that “this is what true business people do” and “it’s great that I can work and interact with the family at the same time.”

The result

Aside from the whole family being fed up with having no quality time, and the fact that it will take at least three times longer to get the work done late at night, because you are tired, and the home office sometimes just doesn’t function as well as it should, the real problem is that of errors and poor bookkeeping.

A VAT inspection

I was speaking with a VAT inspector recently while he was conducting a routine visit on one of our clients. He was explaining how the VAT and HM Revenue and Customs inspectors are all now working together, and that many of the limits for genuine errors and mistakes have been raised, taking away some of the red tape in dealing with relatively small errors.

He then went on to say that where he finds a business with good quality bookkeeping, his confidence level is lifted, and it enables him to complete his review more efficiently and leave the premises within just a few hours. However, his duty, should the record keeping be poor, was to dig deeper until he was satisfied that what was being declared was accurate. Simply put, he said that poor bookkeeping gives HM Revenue and Customs even greater reason to look much more closely at the business owners, with obvious links to not just VAT, but PAYE, income, and the corporation tax departments.

“We don’t want problems, we want solutions…”

At Prime Entry we have several solutions on offer:

• Use our bookkeeping bureau service, offering fixed-price bookkeeping
• Try our easy-to-use bookkeeping software, with full support and training available
• Speak to us, and see if we can help to train you to improve the use of your existing systems
• Improve your time management – maybe help is needed to identify a strategic business plan
• Perhaps you need some help just getting life organised and gain some better focus. If you play sport, you need coaching, so why not invest in a coach for your business and life in general?

So the message is…

If you are in business, or know someone who is, remember that bookkeeping is very important, and that the penalties for getting it wrong are about to get tougher.

At Prime Entry we specialise in bookkeeping, so why not call us to see if we can work with you, or if you know someone who you think may need our help, please feel free to recommend them to us.

For more information, contact us.

Kind regards,

Kevin Whitehouse
01747 826989
kevin@primeentry.com