Simple Accounts for an Optician' practice.

 

Make your practice accounts run simply and save you and your accountant lots of time.

         Invoices:

  • Get a leaver arch file with alphabetical dividers inside (for invoices).
  • Get a loose leaf folder (for statements).
  • Every invoice that arrives at the practice should go in the leaver arch file in alphabetical order.
  • When a statement arrives you staple to the statement all the invoices that are on the statement. Add up all the VAT from the invoices and write it along with the net amount (amount before VAT) on the front of the statement. eg £100.00 NET + £17.50 VAT = £117.50 Total. Put all the statements in the loose leaf folder.
  • Towards the end of the month you then put all the statements into alphabetical order and write a cheque for each one. Write down the cheque number on the front of the statement in the top left corner.
  • File all the statements in cheque order, starting with the lowest number first.

    Cashbook:

     

    A simple spreadsheet will do for this with a sheet for each month. Click here to download a template which you are free to use and adapt if you wish. Click here to download an example of one month of the cashbook.

    On the left you insert any money that has gone into your bank and on the right you insert all your cheques and direct debits etc that have been paid out of your bank. The total columns for both money in and money out are automatically filled in when you fill in VAT and Frames, Lenses etc amount boxes.

    When you get your statement from the bank at the beginning of the month (if your statements come out in the middle of the month then speak to your bank and ask them to change the date to the end of each month) you do as follows.

       

  • Check that all your payments into the bank are listed.
  • Put a star in the column headed “clrd” for all the cheques and direct debits in the spreadsheet that are on the bank statement.
  • You then need to highlight all the cells (boxes) from the first payment to the last eg. L6 to AB63. Then sort them into order using column “O”, the cleared column. You then end up with all the uncleared payments at the bottom of the list.
  • Copy all the unpaid payments to the left hand area titled “Unpaid Cheques”
  • Type in the bank balance that is on your statement in the box provided.
  • The balance in C45 should be the same as the total in C52. If it isn’t you must have input some figures incorrectly.

    That is all there is to it. No need for complicated, expensive accounting packages such as Sage. Keep things simple. If you need help with setting this sort of system up please get in touch.

    You could also add in an extra sheet every quarter to automatically calculate you VAT. Most accountants could do this for you quite simply.

    At the end of your financial year you can then email your spreadsheet to your accountant and give him all the invoice/statements and bank statements. With everything in order it should reduce your accountant’s fees.

         

Dealing with card payments that go directly into your bank?


Eg. Banking amounts that you have received since you lasted went to the bank.

Sight Tests: £250
Spectacles: £ 800
Contact Lenses: £180
Accessories: £20
Total: £1250

Cash: £400
Cheques: £100
Cards: £750
Total: £1250

When this money is banked it would go in to the cashbook as:

Sight Tests: £250
Spectacles: £50 (£800 - £750 cards)
Contact Lenses: £180
Accessories: £20
Total: £500

Then at the end of the month when you get the bank statement you check that all the daily credit card summaries match with the bank statement and just add them together and put them in the cashbook all as one lump sum under spectacles.

 

Standing orders and direct debit payments.

The easiest way to keep track of ongoing standing order or direct debit payments is to have them all being paid into a separate bank account and which can easily then be checked at the end of every month against what is expected in. Then once a month transfer it into your main bank account.

If you are able to do internet banking it is very worthwhile as you can transfer money between the two accounts very easily. You can also download a statement which can usually be sorted into cheque number order to make the reconciliation at the end of the month very quick.