Set up a basic record-keeping system
Purchase ledger
A purchase ledger records all purchases made by your business.
It helps you to monitor:
- your business' outgoings
- how much money you owe (creditors) at any one time
In addition, it gives you a record of your most regular suppliers and how much you have spent with each.
If you are VAT registered it can also help you with calculating your VAT liability and submitting your VAT Return.
Purchase ledger
| Net value | VAT | Gross value | Date paid | Payment type (cash, cheque, credit/debit card) |
|---|---|---|---|---|
Download the purchase ledger spreadsheet (XLS, 20K).
To support your purchase ledger for reconciliation purposes you may wish to make reference to bank account or credit card statements.
How do I use my purchase ledger?
By recording in the purchase ledger payments for purchases you have made, you will be able to identify the amount that is currently unpaid. Each time a payment is made, note it in the "Date paid" column. You can add up the totals on a regular basis to see how much you owe at any one time.
It is a good idea to number each bill when you receive it and record this number against an entry in the ledger. It is also advisable to file the bills in numerical order. That way, you will be able to easily find the bill if a query arises later.
Unless your business is VAT-registered, then you will not need to use the 'Net' and 'VAT' columns.