Unit 52: Record keeping
Effective records will save you a lot of time and money.
Lesson Appointments and Payments:
Ensure your diary is kept neat and tidy – this will avoid confusion. Try to book customers with regular slots well ahead – this will allow you to book new customers in without worrying whether you are bumping a current customer out of their regular slot.
Keep a note of all up-front payments for lessons. This money must be held for the customer – you can’t spend it until their lesson has been taken.
Give all of your customers an appointment sheet detailing the date and time of their next lesson. This sheet can also contain information on how many payments they have made, allowing them to check when they will next owe you money for lessons.
Advertising:
Keep a note of how people found out about you – this will allow you to understand the effectiveness of your advertising. If your advertising is not effective, you may find that you pay much more than you need to for advertising which is not reaching your customers. It is also worth noting down who a recommendation came from – this can be used to reward a customer who regularly recommends you.
Accounts:
Mileage:
Your car and its fuel will be your biggest single outgoing and you can claim all of your business use, but beware of the tax office – unless you keep good records of how much mileage is business related and how much is personal, you may find they refuse a certain amount of the costs.
What can be claimed:
An accountant can help you with this (claimable!), and so can your local tax office.
The basic principle is that if something is for the sole use of your business, then it can be claimed.
Lease car – minus personal mileage as a percentage of cost.
Insurance – as above.
Bought car – depreciation can be claimed, though this is more complex and your tax office or accountant can work this out for you.
Uniforms – with logos.
Stationery – for sole use of the business.
Office equipment – computers and the like can be claimed for but may be subject to personal use as well.
An office – a certain proportion of your mortgage may be claimable, though this may well prove more trouble than it is worth.
Utility bills – as above.
Phone line – certainly if you have a separate one for the business, and a percentage of a single home line may be claimable.
Car Washing.
Car Repairs.
Sign-writing.
Advertising.
Websites and hosting.
Phone answering services.
Book-keeping.
If you feel that the only use for something is for your business – then it is worth claiming for. If you are unsure about something – ask someone in the know. There are a lot of experienced self-employed instructors on the forums, who will often have tried something before – don’t be afraid to ask them.
Being self-employed can be a lonely thing to do sometimes, but remember there is a whole community out there who are doing this too – keep in touch with them.
Discussion Points:
Design of a lesson appointments and payments card
Recording the cost effectiveness of advertising
Mileage records (and mpg)
Accounts – What can be claimed, and what will you need to buy?
