Backbone Drums - Daily and Weekly Accounts Records

Transcription

1 Backbone Drums - Daily and Weekly Accounts Records For any business to operate successfully, accurate records need to be kept. If you are running your own drum teaching business then you need to keep a track of all of your income and expenses. The documents we provide through our site have been used with great success in music schools and private teaching practices to keep accurate records with minimal fuss and effort. Although they are not official documents that a tax authority would accept, they will help you keep a track of your finances, see trends in your income/expenses and plan for the future. They will also help you or your accountant prepare any end of year tax returns etc. Daily Records (optional) These can be used as a form of note taking as you go through your day to record any money you take from lessons or sales of books/sticks etc and any money you spend. The information you fill in here then needs to be copied across to your weekly records. Fill in the name of the student who s paid you or the item you ve sold and then how much you have received. Then record the type of payment (cash/cheque etc). PP Record updated If you offer a discount to students for paying up front for a block of lessons then put a Y or a tick in here to confirm to your self that you have updated their records. There are blank pre-paid records also available through the accounts page of the Backbone Drums site. Invoices checked If you issue invoices to students, this is a good chance to check that there are no outstanding invoices or any that have been paid have been checked off.

2 Weekly Records These records can be filled in by copying over your daily records at the end of the day or once per week, or you can ignore the daily record sheets altogether and just fill this in as you go. Excel workbook There are 3 tabs at the bottom of the document: Summary, Money in and Money out. All columns are automatically added and carried over from page to page. Fill in the white boxes only. PDF documents Each page needs to be printed out separately and columns added up manually. Copy all figures over from the money in and money out sheets to the summary sheet at the end of the week. 1. Summary At the start of the week, fill in just the date and opening balance (carried over from the previous week) on this page. There is also space to write any notes about the week that may have affected your business like school holidays or bad weather for example. These notes may help you plan ahead when looking back at old records. Do not write over any of the other greyed out boxes, as they will adjust automatically as you fill in information on the other 2 pages. As the week progresses, this will sheet gives you a good over view of how you re doing.

3 2. Money in This is where you record the money you take throughout the week. Date The days date. You don t need to fill this in for every transaction, just once per day Description Student name or item sold Type Cash, cheque or bank transfer etc Drum lessons Money taken for drum lessons Sales Money taken for selling books, sticks etc Gigs If you are getting paid for playing, you can record any income from that here too Other income Anything else related to your business that brings money in Spare This is an extra column for any regular income you want to record (On the summary page, this is added to the other income amount) Leave blank if not needed Only fill in the white boxes and you will see the grey boxes fill automatically. If you scroll to the bottom of the page, you will see your totals for the week so far.

4 3. Money out This is where you record the money you spend on anything related to your business. Talk to your accountant about what is acceptable, but generally if you buy anything that relates to how you earn money, record it as an expense. IMPORTANT: Keep all of your receipts somewhere safe for anything you record here. Without receipts you shouldn t record an expense. Date The days date Description Name of item bought or person/company paid Fill in the money you have spent under the most relevant heading: Rent & rates If you are renting property or a classroom to teach from, record expense here Bills If you own or rent a property you will pay bills for things like electricity, gas and water Phone & internet If used for work, record expenses here for land line phone, mobile phone and any internet charges Insurance Any business or public liability insurance costs Travel & fuel If you travel to students, record travel expenses here. If you are earning money from gigging, you can record travel expenses to gigs and rehearsals Advertising Any magazine, internet or printed advertising Consumables Any minor cost for business purposes, for example Tea bags, coffee and milk for a waiting room. Also things like drum sticks are consumables Equipment New drums, cymbals, stools stands etc PC & Software Any new computer or software and add ons (hard drives etc) Building & Maintenance If you rent or own a property specifically for teaching, you will have to do maintenance and maybe further building work. Things such as paint, ceiling tiles etc can be recorded here. Training & Subs Any further training you have to improve your business (drum lessons, management courses etc) and any subscriptions (drum magazines, musicians union etc). Postage & Stationary Pens, pencils, paper etc Bank charges Charges from your business bank account. (It is a good idea to have a separate account just for your drum business. Exam costs Paying up front for students exam entries Stock Anything you intend to sell, such as books and drum sticks Accounts & Wages The money you pay yourself and any other charges relating to your finances Other Anything that doesn t come under one of the previous headings.

5 Again, only fill in the white boxes as the grey boxes update automatically. Scroll to the bottom of the page to see the totals for the week so far. If you refer back to the summary sheet, you will now see that the totals are starting to populate, giving you a complete overview of how you are doing this week. At the end of the week, you can save this to an accounts folder on your computer or print the entire workbook out to keep your records safe. The Balance figure needs to be copied over to the Opening balance on your next weeks record. IMPORTANT: This workbook is an Excel document and can be changed and potentially corrupted if not used correctly. This means that you can amend and change the descriptions to suit your business better, but be very careful not to write over or delete any of the greyed out numerical boxes as this will result in the formulas not working properly and may then give you inaccurate figures. Download a new workbook through the Backbone Drums website every week to make sure it is up to date and working correctly.